Individual & Corporate Tax Breaks That Expired in 2011

Last updated on December 18, 2012

There has been much talk about the expiring of many tax breaks in 2012 because the country is facing a fiscal cliff. But this phenomenon of expiring of tax breaks is not unique to this year. Last year too, many individual and corporate tax breaks expired.

Relief from the alternative minimum tax that cost $132 billion is one such individual tax break that already expired. This tax makes sure that the rich do not use tax breaks to avoid paying of federal taxes. Another major tax break – state and local sales tax deduction – expired too. This tax deduction could be taken by taxpayers living in states where there are no state income taxes. Some of these states are Florida, Alaska, Texas, Washington, Nevada, Wyoming, Tennessee, New Hampshire and South Dakota.

Many business tax breaks also expired last year. The biggest one cost $14.3 billion. This tax break was for manufacturers and other businesses that invest in research and development. Another biggie that cost $11.2 billion was a tax break for restaurant and retail stores that allowed them to write off the cost of certain capital improvements.

Along with these, many other tax breaks also expired last year, and many more are slated to expire this year. Even though expiring of tax breaks is routine; it hurts more when taxpayers are already burdened with a struggling economy.