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Publication Date: August 1983
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): Thomas M. Humbert
Research Area: Banking and finance; Economics
Keywords: Economy
Type: Report
Coverage: Japan
Abstract:
The U.S. should emulate Japan, not by imitating an irrelevant industrial policy, but by copying its tax treatment of capital and investment. Like Japan, the U.S. should reduce taxes on capital gains, corporate income, dividends, and savings. Like Japan, the U.S. should free up the market so that it can raise and allocate capital efficiently. The ultimate goal should be replacement of the current U . S . tax system with a consumption tax. Such reforms would increase the capital available to.the American economy, thus triggering vigorous and sustained economic growth and millions of new jobs.