Policies for Economic Growth

Explain which of the following policies you believe are likely to increase the rate of economic growth in the United States.

a. Congress passes an investment tax credit, which reduces a firms taxes if it installs new machinery and equipment.

b. Congress passes a law that allows taxpayers to reduce their income taxes by the amount of states sales taxes they pay.

c. Congress passes a bill that pays all outstanding student loan debt in the United States.

Sample Solution