The Role of Federal Tax Policy and Regulatory Reform
in Promoting Economic Recovery and Long-Term Growth

American Council for Capital Formation
November 28, 2001

(PDF)

Mr. Chairman, we commend you for this timely hearing on the causes of the U.S. economic recession, the
impact of the events of September 11, 2001, on the economy, and the impact of changes in the tax code on
U.S. economic conditions. My testimony has two central themes. First, changes in fiscal policy can have both short-run stimulative impacts, and if chosen wisely, longrun positive effects that will yield dividends in terms of stronger economic growth well into the 21st century.

Second, regulatory reform, especially of U.S. environmental laws, could also accelerate economic growth as
well as facilitate the achievement of environmental goals by encouraging new investment and capital turnover, especially in the manufacturing and energy sectors ...

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