|Source: Universal Newsreel- President John F. Kennedy-|
In 1962, President Kennedy a Liberal Democrat, but an actual Liberal Democrat, not someone who’s called a Liberal Democrat, but who’s politics suggests they are something else instead, realized that economic growth was too low. And tax rates were too high and that the Federal deficit was growing too high and that we needed a strong economy to bring down the Federal deficit and put more people back to work. In order to eventually balanced the Federal budget. Which is something that was accomplished by President Lyndon Johnson. The last President with a balanced budget, until President Clinton in 1998. Thats why President Kennedy came out in favor tax cuts in late 1962, if not before and send his plan to Congress. Unfortunately he didn’t live long enough to see his tax cuts passed.
President Kennedy, understood to have a liberal democracy, people had to have the liberty to live their lives. And incentive to be productive with their lives. And not see government collect most of their production. That you had to incentivize people to be productive. For the most people possible to work hard and be productive. And that government spending and activity as it relates to the economy isn’t the only way to incentivize economic production. That you also had to incentivize the people themselves to be as productive as they can in the economy and produce as much as possible. And be able to keep most of what they produce. So they see the benefit of their production.
President Kennedy, wasn’t making a case for supply side economics. That George H.W. Bush before he became Vice President called “Voodoo Economics”. Where you cut taxes dramatically across the board without paying for them up front. The theory being that the new economic growth generated by the tax cuts will pay for themselves. President Kennedy, was also concerned about the Federal deficit. What he was saying was that the Federal Government had to be smart about how it spent money. Limit government waste and not spend money on things we shouldn’t be doing. Or spending too much on things that we should be doing. As well as incentivizing economic growth, with a tax code that doesn’t take too much of what people earn. Jack Kennedy, Bill Clinton and Barack Obama, represent where Liberal Democrats should be on taxes. That no one should have to pay a lot in taxes. Meaning so much, that it harms economic growth. But we should all pay our fair share, in a progressive tax system.
Another thing that makes the Kennedy tax cuts from 1962 different from the Ronald Reagan tax cuts of 1981 and the George W. Bush tax cuts of 2001 and what makes the Kennedy tax cuts similar as the Barack Obama tax cuts of 2009, is that the benefit of the tax cuts were aimed at middle-income Americans. And also the Kennedy tax cuts, cut a lot of loopholes in the tax code. He cut rates across the board, but also got rid of a lot of junk in the tax code. For one, to help offset the tax cuts and help to pay for them. But also to get rid of a lot of junk in the code that wasn’t generating economic growth and tended to only benefit the wealthy. President Kennedy, brought down the top rate of the tax code from ninety-percent, to seventy-percent. And the bottom rate from twenty-five percent, to twenty-percent. This tax cut plan that was passed by Congress in 1964 and singed by President Lyndon Johnson and of course the Vietnam War, started an economic boom in America. That lasted the rest of the 1960s.
Universal Newsreel: Income Tax Cut- JFK Hopes To Spur Economy- 1962-63