Saturday, November 23, 2013

[VIDEO] JFK Cutting Taxes: A Fiscal Camelot

As the country marks the 50th anniversary of President Kennedy’s assassination, there are many reflections about the man and his legacy. For those old enough, the emotion of the day will never be forgotten.
When it comes to his economic decisions, it may surprise some to take a look his tax policies. They contrast sharply with the Democratic Party of today, and, in particular, with the tax policies pursued by President Obama.
JFK Cut Taxes to Get Out of a Recession
Like our current President, Kennedy came to office amidst a recession and stubbornly high unemployment. Rather than raise taxes, President Kennedy proposed across-the-board tax cuts, taking the top rate from 91 percent to 70 percent.

According to The Tax Foundation, President Kennedy’s tax cut was larger than the Reagan tax cuts and any single Bush tax cut, compared with national income. While no one would deem a 70 percent top rate desirable, it was a fiscal Camelot compared to the 91 percent top rate in existence when Kennedy took office. It reflected his belief that cutting taxes—not raising taxes—would benefit the economy.

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