Memo
Published February 2, 2009
Updated February 2, 2009
The “Buy American” Provisions in the Economic Recovery Package
By:
Anne Kim, Jim Kessler, John Lageson
SUMMARY
This memo describes three alternatives to the “Buy American” provisions in the economic recovery package. This memo argues for replacing the buy American provisions with one of three options for boosting U.S. manufacturing:
- A bonus R&D tax credit for U.S. manufacturers;
- A tax break on repatriated overseas earnings that are used for increasing production capacity; and
- Putting pressure on China to increase domestic demand for household consumption to correct the US-China trade imbalance.
To read this Memo, open the attached PDF
Anne Kim
