The Top Ten Tax Breaks

Jacqui Kenyon
Posted

If the president and Congress are planning to get serious about tax reform, they may have quite the battle ahead of them, according to CNN Money.

middle classThe top ten tax breaks—which make up most of the $1 trillion the government gives up in tax credits each year—largely serve the powerful voting blocs of the middle class and the wealthy. Attempts to amend these popular breaks are not likely to be well-received.

Topping the list at a whopping $760.4 billion is the exclusion that allows employees to receive health insurance benefits as tax-free income. The combination of tax breaks associated with retirement savings is the runner-up at $708.6 billion.

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One break out of the ten benefits corporations, which are allowed to defer paying income tax on profits by their foreign branches until the money is back in the U.S. Additionally, only one tax break benefits lower-income tax filers: the Earned Income Tax credit.