The following is a summary highlighting testimony by AEI Director of Economic Policy Studies Kevin Hassett to the Joint Economic Committee at a hearing entitled "How the Taxation of Capital Affects Growth and Employment."

This nation employs several methods for taxing capital income, both at the individual and the corporate level.  There is a massive economic literature that documents strong theoretical and empirical support for the United States to reduce its capital taxes

The United States should choose its policies to best further the national interest. That requires a compound calculation of both the gains available from a change in Chinese policy and the probability of U.S. initiatives effecting such a change.

Recently there have been a number of disturbing economic and political developments in Europe that heighten the risk that the Eurozone will experience a spate of sovereign debt defaults within the next six months.

The role of policymakers should be to establish broad, effective, and stable policies that permit the U.S. economy to evolve as market forces dictate.

On the third anniversary of the collapse of Lehman Brothers, the U.S. economy continues to disappoint, and the U.S. labor market has hardly made any progress at all.

This brief overview of our current economic situation outlines the most pressing challenges for employment and growth and describes policy changes that would address our current challenges in the U.S. labor market.

A survey of economists would show a significant difference of opinion concerning optimal policy responses to a recession.