This Working Paper examines the impact of the proposed Market Access Charge (MAC) on international capital inflows into the US economy and the domestic US economy. We build a model including the relationships between US capital flows, the dollar exchange rate, US trade, and the US domestic economy. Our conclusion is that a 5% MAC would realign the dollar to a current account balancing exchange rate, balance trade and stimulate the US economy, generating an additional $1 trillion of GDP, over 4 million additional jobs, and more than $300 billion of additional revenue for the US Treasury.
By Steven L Byers, PhD. and Jeff Ferry