IMF Reports U.S. Is Recovering but Faces Debt and Revenue Challenges
In its recent evaluation of the U.S. economy, the International Monetary Fund states that U.S. recovery from the “Great Recession” has become increasingly well established, but many challenges remain such as restrained private sector spending, high public debt, and the need to increase government revenue.
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Tax Energy, Consumption, and Financial Activity and Reduce Debt
Among other things, the report states the U.S. needs to find a way to credibly reduce public debt without hurting the nascent recovery. It also says that measures to increase government revenues are needed and calls for cuts in deductions (particularly for mortgage interest); higher taxes on energy; a national consumption tax; or a financial activities tax.
Finish Doha to Increase U.S. Trade
The report also praised the Administration’s limited recourse to protectionist measures and encouraged the authorities, in conjunction with other countries, to redouble their efforts to conclude the Doha Round, which will bring increased and more secure market access, promoting U.S. and global exports.
Treasury press release on the report, dated 07/07/10, available here.)