Friday, July 22, 2011

JFK - Posthumous Leader of the Tea Party.

 In 1962, President John F. Kennedy said "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 cut rates now.

And that’s exactly what Kennedy did.

As a result, federal tax revenues went from $94 billion in 1961 to $153 billion in 1968 as Kennedy slashed the capital gains tax and cut the top marginal tax rate from 90 percent to 70 percent.

Calvin Coolidge and Warren Harding cut taxes through the 1920s only to see federal revenues rise from $719 million in 1921 to $1.164 billion as top marginal tax rates fell from 70 percent to below 25 percent.

“Economic history teaches us that when confronted with weakness the proper remedy is to grow, not suffocate the economy.”

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