Section 1603 Program Targeted

Published by Michael Novogradac on Tuesday, April 26, 2011 - 12:00am

Washington Examiner political columnist Timothy Carney has targeted the Section 1603 cash grant program.

Carney’s piece, “Boondoggle in tax code: Subsidies for green energy,” came after President Obama argued for cutting $1 trillion of “spending in the tax code” over 12 years.  Currently the tax code contains annual “spending” of ~$1.2 trillion.  President Obama suggested reducing that annual “spending” by about 7%, or $83 billion a year. 

As deficit reduction talks continue, expect more tax expenditures to be criticized in the popular (and not-so-popular) press.  And remember, when the last major tax reform plan was adopted nearly 25 years ago (Tax Reform Act of 1986) , the actual number of tax expenditures did not change notably.