We, as voters, are confronted with two distinct theories of taxation in the upcoming election. Our choice will frame our future, so let’s look back for guidance.
We need not accept an unemployment rate of five percent or more, such as we have had for 60 out of the last 61 months. There is no need for us to be satisfied with a rate of growth that keeps good men out of work and good capacity out of use…
[O]ur present tax system…exerts too heavy a drag on growth in peace time; that it siphons out of the private economy too large a share of personal and business purchasing power; that it reduces the financial incenitives [sic] for personal effort, investment, and risk-taking. In short, to increase demand and lift the economy, the federal government’s most useful role is not to rush into a program of excessive increases in public expenditures, but to expand the incentives and opportunities for private expenditures…
Corporate tax rates must also be cut to increase incentives and the availability of investment capital…
In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.
Governor Romney? President Bush? President Reagan?
No, those words were spoken by President Kennedy in December, 1962. You can read the entire speech here.
President Kennedy was able to get Congress to cut tax rates and close “tax loopholes” the following spring. So what happened threafter?
Tax revenues climbed from $94 billion in 1961 to $153 billion in 1968, an increase of 62 percent…
The same has happened every time we have cut tax rates…tax revenues increase. And Presidents Kennedy, Reagan and Bush understood that.
But that prompts another question.
Democrats tell us that, over time, the Republican party has veered sharply to the right.
Who sounds more like President Kennedy…President Obama, or Governor Romney?
And which party has veered, sharply, or otherwise?