|Posted by commonsenseforamericans on February 14, 2010 at 1:42 PM|
What part of cutting tax rates do the politicians not understand? On November 20, 1962, President Kennedy said the following and most importantly followed through on his belief.
"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."
There are many other examples of speeches he made during his time in office that make his tax cutting policies clear. For further examples go to: http://www.nationalcenter.org/JFKTaxes1961.html
It comes down to the basic understanding that if rates are low the economy expands and more tax revenue flow into the treasury. It has worked every time it’s been done.
This policy is true today as it was then. Ronald Reagan did exactly the same and revenues grew at a tremendous rate. Liberals point out that the deficit grew during the Reagan years. That is true, but not because rates were lowered, they grew because Congress immediately grew spending even beyond the increased income.
That is the ultimate problem of our economic geniuses in Congress. They just can't comprehend that spending is the problem, not taxing the public at higher rates.