Posted on 11/22/2007 10:10:46 PM PST by goldstategop
Forty-five years ago this week, President John F. Kennedy announced a startling economic discovery. He tried to educate the American people about why he was cutting taxes – not that the American people or any other people have ever needed to be persuaded to cut taxes.
In a news conference Nov. 20, 1962, he said: "It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now. ... Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus."
Still, 20 years later, many were skeptical when Ronald Reagan explained the same principle again. Nevertheless, the policies worked both times – to perfection.
As for Kennedy, still an icon of the modern American Democratic Party, it was not the first nor the last time he would make this point.
In his budget message to the Congress Jan. 17, 1963, he explained: "Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government."
He underscored the point a few days later Jan. 21, 1963, in his annual address to the Congress: "In today's economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarges the federal deficit – why reducing taxes is the best way open to us to increase revenues." He added: "It is no contradiction – the most important single thing we can do to stimulate investment in today's economy is to raise consumption by major reduction of individual income tax rates."
(Excerpt) Read more at worldnetdaily.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
I’m more for spending cuts than tax cuts.
In the long-run, spending cuts equal tax-cuts. Although it’s more popular to give and not tax, than it is to cut and not tax.
JFK would be a Republican in 2007.
He would be driven from the democrat party by the Marxist scum, oops I mean “activists,” who have seized control of this once great political entity.
I think it is the opposite. First, grow the economy with tax cuts and people won’t demand so much welfare spending. Then we can cut spending and have more tax cuts
Cutting spending without giving back the money in a tax cut will not help the economy.
JFK was President however the tax cut was the brain child of his Republican Sec. Tres. C. Douglas Dillon.
http://www.nationalreview.com/kudlow/kudlow033103.asp
John F. Kennedy reduced marginal tax rates during the buildup to the Vietnam War. His Republican Treasury secretary, Douglas Dillon, successfully pushed Kennedy in the direction of lower taxation and a stable dollar — economic growth policies that would be critical to halting post-war Soviet aggression around the world. When Johnson and Nixon raised taxes and sunk the dollar, they provided the Soviets with a dangerous opening for global dominance.
Roughly twenty years after the Kennedy/Dillon tax cut, Ronald Reagan employed exactly the same low-tax/strong-dollar strategy to revive the American economy in the run-up to his successful campaign to overturn Soviet communism.
Tax cuts don’t guarantee the end of poverty, nor does anything else. Poverty to some point is a part of the human experience.
The ‘dole’ (or welfare) isn’t going to cut spending too much, it’s the medical arena and Fica (ie SS). If we slowly fade away Fica and Medicare (or limiting it greatly)...while promoting savings and investment...say goodbye to the bulk of our foreign borrowing.
I’m just not on the perpetual tax-cut with no spending-cut train. Go with both,...not just one.
Tax cuts and reduced spending would work better, I would think … but what would I know. Don’t give us back anything, just don’t take it in the first place. … but what would I know.
Teddy is the direct opposite of President Kennedy and should be ashamed of himself.
And the Japanese LDP is talking about raising the consumption tax ( sales/service tax on EVERYTHING ) to 10% !
Many of those skeptics share their thoughts on these same threads. Personally, I find it hard to get around the facts that tax-cuts are immediately followed by stock rallies, then by gdp growth, and finally by revenue increases. Skeptics often hang their hat on the fact that rate cuts do in fact cause a short term drop in revenue, but imo that sidesteps the whole point --sustainable fiscal responsibility.
Maybe this whole discussion is not economic but political in focus. Kind of like a "global-warming" for money people.
Forty-five years ago this week, President John F. Kennedy announced a startling economic discovery. He tried to educate the American people about why he was cutting taxes...
a republican cornerstone that has stood the test of time....
and the patron saint of the lib/dems of today would have today been kicked out of his own party with views he espoused 45 years ago!!!
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