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Federal regulations and tax policy can harm small businesses or discourage them from expanding in a bid to avoid the higher regulations and taxes that the government levies on larger firms, according to the Congressional Budget Office.

A CBO report published March 12 examines the job-creation records of small businesses and the federal regulatory and tax environments they face. It finds that small businesses create more jobs faster than their larger counterparts, but often face pressures arising from federal tax and regulatory policy.

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