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Tax Rate Reductions Strengthen the Economy, But Excessive Government Spending Threatens Long-Run Performance

To enhance economic performance, Congress should make thepro-growth portions of the Bush tax cuts permanent, implementreforms to shift the Internal Revenue Code closer to a simple andfair flat tax, cap the growth of federal spending, eliminateprograms or devolve them to the state and local levels, reformentitlements, and use cost-benefit analysis to rein in regulatoryexcess.
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