Just about everyone alive on November 22, 1963, can tell you where they were when they heard that President Kennedy had been shot. Remembering that moment from 50 years ago gives me pause to also remember some of the thoughts that JFK had on economics and taxes.
The following ideas of President Kennedy on these topics are paraphrases of statements from the JFK Library:
- The absence of recession is not tantamount to economic growth.
- “A rising tide lifts all boats” and that strong economic growth cannot continue without lower taxes.
- Lowering taxes is the surest path to full employment and lower deficits.
Here is a link to the President’s appeal to Congress on April 20, 1961, to enact tax cuts. In this communication he enunciated his call for tax cuts for individuals and corporations and for the creation of an investment tax credit to spur capital investments in plants and equipment.
Here is an excerpt from his special message to Congress on tax reduction and reform on January 24, 1963:
Small businessmen with net income of less than $25,000--who constitute over 450,000 of the Nation's 585,000 corporations will, under this program, receive greater reductions in their corporation taxes than their larger competitors. Under my program, beginning this year, the first $25,000 of corporate taxable income will be subject to a tax rate of 22% rather than 30%, a reduction of almost 27%. This change is important to those small corporations which have less ready access to the capital markets, must depend more heavily for capital on internally generated funds, and are generally at a financial and competitive disadvantage. Unincorporated businesses, of course, will benefit from the reduction in individual income taxes.
Who can say what would have happened in history if President Kennedy had not been shot? Surely it would have been interesting!