This study aims to evaluate the economic and social impacts of tax expenditures within a theoretical framework and through international comparisons. Tax expenditures are defined as indirect incentives provided by the state through tax policies to achieve specific economic and social objectives. The study comparatively examines the structural characteristics, target areas, and ratios to GDP of tax expenditures in developed and developing countries. The findings show that developed countries have higher levels of tax expenditures, focusing particularly on long-term development goals such as investment, R&D, and environmental sustainability. On the other hand, although rapid economic growth is observed in lower-income countries, it is understood that tax expenditures alone do not guarantee this growth. The study reveals that the effectiveness of tax expenditures depends not only on their size but also on the targeted areas, implementation methods, and institutional capacity. Additionally, caution is advised against risks such as weakening fiscal discipline and a lack of transparency. In conclusion, when properly designed, tax expenditures can provide significant contributions to economic growth, employment, innovation, and environmental transformation; however, these tools must be managed in a rational, transparent, and accountable manner. Future research is recommended to conduct detailed analyses of the sectoral and regional effects of tax expenditures and to develop evaluation mechanisms.