What are some key ways in which government spending and tax expenditures differ? Select all that apply. They differ in that government spending explicitly subtracts from the federal budget, whereas tax expenditures reduce the tax revenue available for government spending. tax expenditures disproportionately benefit the poor, whereas government spending is more helpful to the wealthy. tax expenditures allow people to keep their hard‑earned income, whereas government spending takes it from them. government spending must be renewed or evaluated each year, whereas tax expenditures renew automatically.