One typical characteristic differentiating U.S. public policy compared to Europe is that U.S. governments often use tax incentives rather than explicit government programs to pursue particular policy goals (which include providing pensions, medical insurance, home ownership, or private investment). For example, European governments might provide larger government pensions for retirees where the U.S. might provide modest government pensions through Social Security and then encourage firms to provide additional pensions for its workers by giving tax breaks for the funds that the firms devote to their pension plans. Look at the list of tax expenditures in Table 12-1 of your text. Which do you think are more valuable than others? Why? Would public goals sometimes be better pursued through explicit government spending rather than the equivalent tax breaks? Offer examples. Respond to at least two of your classmates’ postings. the 7th ed. of the text is attached below
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