U.S. Capital Formation: How the U.S. Tax Code Discourages Investment
by Margo Thorning on 01/31/2002
27 Pages
A significant problem of the U.S. tax code is that it discourages saving and investment critical to economic growth. Fundamental tax reform toward greater reliance on consumption taxes would increase national saving, reduce the cost of capital, and lead to higher levels of capital formation and GDP. Such a move would be an important policy lever for achieving stronger economic growth, higher living standards, and greater national security.
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