The article focuses on the capital formation in the United States. For capital formation to take place, conductive scenario has to be formulated, and that is what the Financial Analysts Federation (F.A.F.) is doing for their members and their clients. Since the members of the federation are constantly engaged in making investment decisions, so they are the one who have knowledge and understanding to guide persons on this subject. Capital formation plays an important role in the growth of an economy, job creation, and helps to keep a check on inflation and to compete with foreign producers. The ultimate beneficiaries are the citizens. For capital formation advocacy, the FAF discusses investment topics with officials or staff in the Treasury, Federal Reserve and the U.S. Congress. The area of focus for the Federation has been tax policy because of its direct bearing on investment. Tax differential on capital gains finds a favor of the Federation, and proposes a lower tax on capital gains to increase the rewards for entrepreneurship.