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| | OpinionJournal - Featured Article |
 | | As Martin Baily, a former head of Bill Clinton's Council of Economic Advisers, has described, this can lead to a spiral of rising taxes and falling employment, especially when welfare payments are high, as they are in most of Western Europe. |
 | | The result is predictable--more jobs are lost, the tax base shrinks, and taxes must go up further to pay for yet more welfare benefits, making work less attractive and not working more attractive. |
 | | In the U.S. and the U.K., a combination of tax cuts, labor-market reforms and deregulation starting in the 1980s broke the downward spiral in which the Continent still finds itself. |
| www.opinionjournal.com /editorial/feature.html?id=110006692 (1104 words) |
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