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Can Tax Policy Improve Economic Competitiveness? (CRS Report for Congress)

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Release Date March 13, 2000
Report Number RS20495
Report Type Report
Authors David L. Brumbaugh, Government and Finance Division
Source Agency Congressional Research Service
Summary:

Perspectives on international competitiveness differ, so it's not surprising that tax proposals for improving competitiveness vary also. But economics is famous for being "the dismal science," and its reputation is well-deserved in this case: regardless of how competitiveness is defined, economic analysis suggests that most tax measures can do little to enhance it. Indeed, many of the tax provisions designed to improve U.S. performance in the world economy could actually reduce U.S. economic welfare.