2003 Capital Formation Forum Series Featuring Leading Economic Policymakers Winds Down As 2004 Schedule Takes Shape

ACCF Capital Formation Forum
October 2003

The 2003 ACCF Capital Formation Forum series concluded September 25 with Senator Don Nickles (R-OK), Chairman of the Budget Committee, addressing ACCF supporters in Washington D.C.

As in years past, the 2003 ACCF Capital Formation Forum series provided Washington's leading tax and economic policymakers, regulators and economists an opportunity to address members of Washington's business community to discuss the economy and other pertinent issues.

Peter R. Fisher, Under Secretary of the U.S. Department of Treasury, kicked off the 2003 forum series on January 27. Under Secretary Fisher described the beneficial impact President George W. Bush's proposal to eliminate the double taxation of dividends would have on the nation's economy.

"I think ending the double taxation of dividends has the opportunity to be a game-changing move in our economy. In my opinion, the impact of the President's proposal is likely to be even bigger than our own forecasts suggest."

Douglas Holtz-Eakin, director of the Congressional Budget Office, addressed ACCF supporters on March 19. Dr. Holtz-Eakin outlined his goals for the CBO under his tenure during his address to the ACCF.

"I would like to improve CBO's communication with Congress, make CBO more responsive, improve internal management, and improve the accuracy of C BO's receipts forecasts."

A former distinguished fellow of the ACCF Center for Policy Research, Dr. Holtz-Eakin also shared his thoughts about the ACCF's public policy think tank.

"The ACCF Center for Policy Research continues to demonstrate it is a valuable source for analytical work on public policies to promote saving and investment. It's reputation for excellence is well-deserved."

Congress' top Democratic tax policymakers dominated the ACCF forum schedule in April.

Senator Max Baucus (D-MT), the ranking Democratic member of the Finance Committee, addressed ACCF supporters on April 8. The Senator touched on two of the ACCF's core areas of concern, capital investment and international competitiveness, during his address.

"I think we should stick with the issues that will make a difference at the margin, including depreciation and competitiveness. Let's try to think of a way to increase saving but let's not jump in thinking we've found the panacea," Senator Baucus said.

Representative Charles B. Rangel (D-NY), the ranking Democratic member of the House Ways and Means Committee, articulated his concern for the U.S. economy in his remarks on April 10.

"The question is what can we agree on to stimulate the economy? Even some of the most conservative Republicans have concerns about a large tax cut when the cost to revive Iraq could dampen investor confidence," Representative Rangel said.

One of the high points of the 2003 ACCF Capital Formation Forum series occurred May 1 when Treasury Secretary John W. Snow thanked the ACCF for its efforts to promote a pro-growth economic agenda.

"We appreciate the role the American Council for Capital Formation is playing in bringing the importance of saving and investment to job creation and economic growth to the attention of policymakers, the media and business leaders."

More than 100 people gathered to hear the Treasury Secretary Snow detail the positive impact President George W. Bush's tax proposal would have on the U.S. economy.

"Out biggest worry now is not the budget deficit, but how we increase jobs and growth in the U.S. economy. We will continue to push for the complete elimination of the tax on dividends because it will have the biggest impact on the economy," Treasury Secretary Snow said.

The complete elimination of the dividend tax proved elusive, but the Administration was able to reduce the rate substantially, harmonizing the dividend tax rate and the capital gains tax rate at 15 percent.

Senator Charles E. Grassley, chairman of the Senate Finance Committee, addressed ACCF supporters shortly after Congress had completed its work on the President's proposal.

"It is seldom that you have the opportunity to demonstrate that reducing taxes on capital can both promote saving and investment and increase Federal revenues," Senator Grassley said.

House Democratic Whip Steny Hoyer (D-MD) addressed ACCF members on September 10. During his address, Rep. Hoyer detailed his party's concerns for the economy.

"We’ve got to be able to produce in our own country. Democrats support policies that encourage manufacturing because we know they affect people and create jobs," Rep. Hoyer said.

ACCF officers are currently arranging the 2004 ACCF Capital Formation Forum schedule. For more information on the forum series please contact the ACCF at 202-293-5811.