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

  • 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.

  • Tax Reform, U.S. Investment and Job Growth: Does Cash Flow Matter?

    Dr. Margo Thorning submits testimony for the hearing on “Manufacturing and Tax Reform” by the U.S. House Committee on Ways and Means

  • The Fiscal Cliff: Impact on U.S. Economy and Employment if Bush Tax Cuts Expire

    As the debate about how to revive strong U.S. economic and job growth continues, policymakers must confront a host of budget and tax policy decisions. One of the key issues policymakers must decide is the fate of the reductions in tax rates on income, capital gains and dividends which were enacted during the 2001-2005 period and then extended for the 2011-2012 period. The ACCF presents this summary of a new macroeconomic analysis by Dr. Allen Sinai, Chief Global Economist and President of Decision Economics, Inc to help policymakers, the public and the media understand the consequences of raising tax rates in the current economic environment.

Recent Articles

  • Tax Reform: Don’t Discourage Much-Needed Retirement Saving For Economic Growth

    There is a lot that Congressional leaders can do on tax reform, but what they should not do is inadvertently discourage much-needed savings that would not only help retirees, but would also put the country on a much needed path toward healthy economic growth.

  • They Said What?

    Barron’s asked four experts on the economy, politics, and the markets what 2014′s biggest surprise will be. With the economy improving and stocks routinely hitting new highs, we asked: What could be the biggest surprise of 2014? Mark Bloomfield President, American Council for Capital Formation An unexpected event shocks financial markets, causing a drop of […]

  • The Economic Hokum of ‘Secular Stagnation’

    ACCF scholar says blaming the market for the failure of bad government policies is no more persuasive now than it was in the 1930s.

  • How to Stop Lurching From One Budget Crisis to the Next

    In Wall Street Journal, ACCF Scholar Michael Boskin writes on how a bipartisan effort to cut spending could find billions in savings even while leaving the heavy lifting for later.

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

  • Oil Industry Profitability, Investment and Tax Policy: What are the Facts?

    Background: A recent article by Daniel Weiss of the Center for American Progress tries to make the case that because the net income of large, integrated U.S. oil companies has risen in recent years, these companies should lose the federal income tax provisions they currently use.[1]  A quick look at Weiss’s article reveals several serious […]

  • LNG Exports: How Much Will They Impact U.S. Natural Gas Prices?

    One important issue in the debate about expediting the U.S. Department of Energy’s LNG permitting process is the impact of exports on domestic natural gas prices. U.S. shale gas production, which has risen by 50% over the 2007-2012 period, has contributed to the fall in natural gas prices from a high of $11/million cubic feet […]

  • Testimony: Pro-Growth Energy Tax Reform

    Dr. Margo Thorning offers her views on pro-growth energy tax reform before the Senate Subcommittee on Energy, Natural Resources and Infrastructure

  • How Federal Energy Policies Can Support U.S Economic Recovery

    As the Senate Energy and Natural Resources Committee, chaired by Senator Ron Wyden (D-Oregon), holds yet another hearing to investigate the pricing of oil and gas in the U.S. and restructuring in the refining industry and distribution system, it is important to focus on the very positive impact the U.S. oil and gas industry has […]

Recent Articles

  • THORNING: Closer than ever to tapping Alaska’s natural gas

    Staying the course on energy-tax reform is the key to needed investment

  • Will Today Be the Day LNG Exports Win the War?

    By Margo Thorning Congressional attention on exports of American natural gas is reaching new heights. A range of voices in economic, trade, energy and foreign policy has been urging Washington to expedite the long-stalled approval process for export licenses of liquefied natural gas (LNG). Now, both the Senate and House have scheduled hearings Tuesday that will […]

  • Letters to Editor: Exporting liquefied natural gas

    I am in full agreement with your editorial; speeding up liquefied natural gas exports to Europe and Asia is in America’s best interests. More than 20 applications are stalled at the Department of Energy — the longest for over 800 days for no reason other than bureaucratic delay. And only one of the six “approved” […]

  • Obama administration is last man standing on LNG exports

    The crisis in Ukraine has fueled mounting pressure on the White House to take action on liquefied natural gas (LNG) exports. But when given the opportunity to show leadership on expediting LNG exports, the White House deflected, with press secretary Jay Carney simply stating, “The Department of Energy has regulatory authority over liquefied natural gas […]

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

  • Tax Reform: Don’t Discourage Much-Needed Retirement Saving For Economic Growth

    There is a lot that Congressional leaders can do on tax reform, but what they should not do is inadvertently discourage much-needed savings that would not only help retirees, but would also put the country on a much needed path toward healthy economic growth.

  • Camp Tax Plan May Deal Winning Hand to Dual Capacity Taxpayers

    “Dual Capacity is a pretty small tax,” Margo Thorning, senior vice president and senior economist at the American Council for Capital Formation, told Bloomberg BNA March 6. “At a top rate of 25 percent on no more than 5 percent of income, the tax amounts to 1.25 percent,” she said.

  • Oil Industry Profitability, Investment and Tax Policy: What are the Facts?

    Background: A recent article by Daniel Weiss of the Center for American Progress tries to make the case that because the net income of large, integrated U.S. oil companies has risen in recent years, these companies should lose the federal income tax provisions they currently use.[1]  A quick look at Weiss’s article reveals several serious […]

  • They Said What?

    Barron’s asked four experts on the economy, politics, and the markets what 2014′s biggest surprise will be. With the economy improving and stocks routinely hitting new highs, we asked: What could be the biggest surprise of 2014? Mark Bloomfield President, American Council for Capital Formation An unexpected event shocks financial markets, causing a drop of […]

Capital Gains Tax Policy

In 1978, ACCF was instrumental in helping turn a looming hike on the capital gains tax into a dramatic tax cut. Today, thirty years later, ACCF continues to provide expert research and a bipartisan effort to maintain low rates on capital gains taxes.

Research Publications & Testimony

  • Update: State and Federal Individual Capital Gains Tax Rates – How High Could They Go?

    As the debate on federal tax reform continues, the ACCF Center for Policy Research (CPR) presents this Special Report to further the debate and highlight the effect of increased federal tax rates on long-term individual capital gains tax rates when both the federal, state and, in some cases, local tax rates are combined. Long-term individual […]

  • 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.

  • The Fiscal Cliff: Impact on U.S. Economy and Employment if Bush Tax Cuts Expire

    As the debate about how to revive strong U.S. economic and job growth continues, policymakers must confront a host of budget and tax policy decisions. One of the key issues policymakers must decide is the fate of the reductions in tax rates on income, capital gains and dividends which were enacted during the 2001-2005 period and then extended for the 2011-2012 period. The ACCF presents this summary of a new macroeconomic analysis by Dr. Allen Sinai, Chief Global Economist and President of Decision Economics, Inc to help policymakers, the public and the media understand the consequences of raising tax rates in the current economic environment.

  • The Buffett Rule: 5 Things You Need to Know

    The Senate recently rejected “The Buffett Rule.”  However, Senate leaders and President Obama pledge to continue to make it a defining political issue this election season.  Economic research has long shown that tax hikes on savings and investment can have adverse impacts on entrepreneurship, job and economic growth and U.S. competitiveness.  Here are 5 important […]

Recent Articles

  • They Said What?

    Barron’s asked four experts on the economy, politics, and the markets what 2014′s biggest surprise will be. With the economy improving and stocks routinely hitting new highs, we asked: What could be the biggest surprise of 2014? Mark Bloomfield President, American Council for Capital Formation An unexpected event shocks financial markets, causing a drop of […]

  • A state tax rate still too high

    Taxing consumption rather than saving and investment can be an important policy lever for achieving stronger economic growth, funding important spending priorities, and achieving higher living standards for all New Yorkers.

  • The Spirit of Tax Reform Past

    Barron’s – Tax reform in 2014? No way! Experts said the same in 1985 and were surprised to see the Tax Reform Act of 1986 signed into law. Tax reform is a perennial interest in Washington. It rises from the ashes whenever the time is right, and no real expert should ever declare it dead.

  • Forged in Battle: Tax-Reform Surprise

    Investors beware: A reform that broadens the tax base and lowers marginal income rates is likely to call for higher rates on capital gains and dividends, according to Mark Bloomfield, president and CEO of the American Council on Capital Formation.