Tax breaks save businesses and individuals billions of dollars every year, yet every year the government lets many of them expire, and then renews them. At the end of 2013, Congress let 55 tax breaks expire which could have a significant impact on both individual and business tax filers.
Since this happens every year, it would seem to be not a big deal. However, the problem with the latest expiration of tax breaks is that Americans are concerned that the government might not renew them. After what Americans have been experiencing with the government, including program cuts and government shutdown, you can hardly blame them for being anxious about whether or not the tax breaks will be renewed.
Some of the tax breaks include:
- A deduction for state and local sales taxes benefits people who live in states without state income taxes
- Tax breaks for college students and commuters who use public transportation
- Tax credits for companies that invest in research and development
- Tax exemptions for financial institutions doing business overseas
- Tax write-offs for teachers who buy classroom supplies with their own money