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The fallacy behind U.S. tax holidays
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Newspaper Article
The fallacy behind U.S. tax holidays
2011
Overview
Most temporary tax holidays \"reward people for what they are going to do anyway,\" he said, adding that \"the bang for the buck is very low; you're subsidizing companies that were already going to hire.\" \"If Congress enacts a second tax holiday, rational corporate executives will conclude that more tax holidays are likely in the future,\" Chuck Marr and Brian Highsmith of the Center on Budget and Policy Priorities in Washington recently wrote. \"That will make corporations more inclined to shift income into tax havens and less likely to make investments in the United States.\" Again, there is that little problem with demand. \"Every C.E.O. and C.F.O. will tell you they will only hire when they are confident they can get sales,\" Mr. [Howard Gleckman] said. \"They say to themselves, 'How much can we sell with the workers we have?\"'
Publisher
New York Times Company
Subject
