Economic Policy

For nearly thirty years, the ACCF and its research affiliate, the ACCF Center for Policy Research, have brought the message to U.S. and international policymakers, the media, and the public that a nation's strength and stability depend upon well-thought-out economic, regulatory, and environmental policies to promote capital formation, economic growth, and a higher standard of living for all.

Research Publications & Testimony

  • Why Is Capital Investment Consistently Weak in the 21st Century U.S. Economy?

    A new report sponsored by the ACCF and completed by The Aspen Institute program on Manufacturing and Society in the 21st Century and the MAPI Foundation explores the various causes of sluggish capital investment, discusses the damaging implications this ongoing trend has had on U.S. productivity and economic growth, and finally suggests policy recommendations to stop the slide.

  • Special Report: Trade Promotion Authority – American Economy & Trade

    The President’s 2014 Trade Policy Agenda stresses the critical role of trade and investment in the Administration’s strategy to create jobs, promote growth and strengthen the middle class. However, Congress has failed to grant Trade Promotion Authority (TPA) to the Executive Branch since the last one expired on July 1, 2007. This special report discusses […]

  • Special Report: A Higher Tax Rate on Dividends: Would it Impact U.S. Economic Recovery and Capital Formation?

    The ACCF CPR presents this Special Report to help policymakers, the public and the media understand the short and long run consequences of raising tax rates on dividends.

  • The Impact of Raising Tax Rates on Individual Capital Gains

    Background

    Even though the recession has been officially over since 2009, the U.S. economy continues to struggle with high unemployment and sluggish economic growth. Decision makers face major uncertainties, including the scheduled expiration of decade old tax reductions for families and individuals at all income levels, the so-called “Bush Tax Cuts.” One component of the expiring tax cuts is the individual capital gains tax rate. Without any action, the top individual capital gains tax rate will increase to 20% from the current top rate of 15%. As a result of the recently passed 2010 health care legislation, there will be an additional 3.8% tax on unearned income beginning in 2013. Coupled with the 2013 scheduled restoration of the “Pease Limitation” on itemized deductions (which will impose roughly a 1.2% marginal rate on capital gains), individuals will face a top federal rate on capital gains of 25%. This sharp 67% increase on investment income will no doubt have negative consequences on an already struggling U.S. economy. This testimony presents evidence on the impact of capital gains taxes on entrepreneurial activity, discusses how the U.S. tax rate compares to our trading partners and how letting the tax rate rise will impact the overall U.S. economy and job growth.

Recent Articles

  • Letter to Editor: Advisers, Robotic or Not, Should First Do No Harm

    Robert Litan and Hal Singer’s “Obama’s Big Idea for Small Savers: ‘Robo’ Financial Advice” (op-ed, July 22) outlines important points about the Labor Department’s fiduciary rule. However, there are a couple of additional points that are worth highlighting. The first is the possibility of increased leakage out of retirement accounts during job changes if the […]

  • Clinton’s capital gains sliding scale is a slippery slope

    In her economic speech today, presidential candidate Hillary Clinton (D) proposed a sharp spike in the capital gains tax as an end to “quarterly capitalism.” Specifically, Clinton would replace the current maximum capital gains tax of 20 percent for investments held for at least one year. Instead, there would be a sliding scale of taxation […]

  • Why Is Capital Investment Consistently Weak in the 21st Century U.S. Economy?

    A new report sponsored by the ACCF and completed by The Aspen Institute program on Manufacturing and Society in the 21st Century and the MAPI Foundation explores the various causes of sluggish capital investment, discusses the damaging implications this ongoing trend has had on U.S. productivity and economic growth, and finally suggests policy recommendations to stop the slide.

  • A Bipartisan Breakthrough on Trade

    Washington, D.C., witnessed a rare but welcome event this week when Republican leaders decided to back President Obama’s request for “fast track” trade authority. This would establish negotiating guidelines for the president and guarantee him an up-or-down vote in Congress on any trade deal he signed. This in no way means that the fight is […]

Energy and Climate Change Policy

ACCF is an internationally recognized economic authority on energy and environmental policy issues. Because energy use and economic growth go hand in hand, policymakers should develop a flexible, long-term approach to reducing the growth of greenhouse gases (GHGs). This will require a global effort based on technological innovation and technology transfer to developing countries where GHG emissions growth is most rapid. In addition, U.S. tax policies should be reformed to reduce the cost of capital for new energy efficient and pollution control technologies.

Research Publications & Testimony

Recent Articles

  • OPINION: Refineries’ Argument on Crude Oil Exports Ignores Market Realities

    This week the CRUDE coalition, on behalf of Monroe Energy, commissioned a new report by Stancil & Co. which concluded that lifting the crude export ban would actually raise fuel costs. However, this claim – and others made in the report – ignores key market realities and the findings of numerous independent economic analyses, including those conducted by the U.S. Department of Energy over the last six months.

  • GOP pounces on Iran deal as reason to end ban on crude oil exports

    The Iran deal presented an opportunity, industry officials said. Many saw it as a way to bring skeptical Republicans and Democrats on board. “I think that right now, when I say our plan — it’s not like there’s any coordinated plan but I think everyone gets the importance for Murkowski … that we have to exploit the Iran thing as much as possible,” Dave Banks, a former Capitol Hill aide who is now executive vice president with free-market group American Council for Capital Formation, told the Washington Examiner.

  • Obama climate pledge on ‘very shaky legal ground,’ critics say

    By Zack Colman EXCERPTED “The reason the administration is on such shaky legal ground is they are attempting to achieve their goals through regulation and administrative fiat,” Mandy Gunasekara, GOP counsel on the Senate Environment and Public Works Committee said at a Washington event assembled for diplomats whose nations will be participating at the United […]

  • Critics tell Washington’s diplomatic corps that U.S. climate pledge is ‘shaky’

    Lisa Friedman, E&E reporter Published: Wednesday, July 22, 2015 EXCERPTED In a briefing yesterday aimed at members of Washington, D.C.’s diplomatic corps, leaders from the U.S. Chamber of Commerce, former Bush administration officials and GOP Senate aides said the Obama administration’s commitment to slash greenhouse gas emissions cannot be achieved, is on “shaky legal ground” […]

Tax Policy

For three decades, the American Council for Capital Formation has been a leading and effective advocate of sound economic policies to promote sustained economic growth, job creation, and international competitiveness. With its bipartisan approach, the breadth and diversity of its support in the business community, and long experience working with policymakers and the media, the ACCF has been instrumental in focusing attention on the need for economic policies to enhance capital formation.

Research Publications & Testimony

Recent Articles

  • Five myths about capital gains taxes

    The American Council for Capital Formation finds that the Hillary Rodham Clinton plan would raise the capital gains tax to nearly the highest in the industrial world. The U.S. already has the highest corporate tax rate in the world, so this would be a double whammy. The Tax Foundation finds that bang for the buck, lowering the capital gains tax rate is one of the most pro-growth measures Congress could adopt. The optimal capital gains tax is zero.

  • Hillary Clinton’s tax plan would be ‘devastating': critics

    “The mainstream of economists want growth. That means there should be less taxes on investments,” says Mark Bloomfield, president of the American Council for Capital Formation.

  • Letter to Editor: Change Highway Trust Fund Source

    In attempting to use reform of U.S. taxation of foreign-source income as a mechanism to replenish the Highway Trust Fund, Congress and the White House would only complicate further the already Herculean task of enacting the broad-based reforms needed to make our tax system competitive (“Talks Eye Overseas Taxation Overhaul,” page one, July 22). In […]

  • Two Key Questions on Capital Gains Tax

    In a speech Friday calling for an end to “quarterly capitalism,” Democratic presidential candidate Hillary Clinton proposed replacing today’s maximum tax on capital gains with a sliding scale of taxation based on how long the investment is held. The levels would begin at 39.6% for those investments held for less than two years and decline […]