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President Kennedy responds to Paul Krugman

"Krugman conveniently stops his analysis of the supposed “golden years” of sky-high 91% marginal income tax rates right before they were permanently lowered. And the tax reform that lowered the 91% tax rate didn’t come from a Republican obsessed with right-wing propaganda about lower top tax rates being essential to economic growth. The supply-side tax cuts came from a left-wing, Democratic President.

In the video above from August 13, 1962, watch President Kennedy as he announces his bold plan to introduce permanent, across-the-board, top-to-bottom tax cuts for both individuals and corporations to help the economy grow and prevent a recession. Kennedy argued that tax reform was “long-needed” because both “logic and equity” demanded tax relief for Americans. Further, Kennedy predicted that the dollars released from taxation would create new jobs, new salaries, and spur economic growth and an expanding American economy, thereby creating more jobs and higher tax revenues. He was exactly right.

Kennedy’s supply-side tax cuts were enacted in 1964 after he was assassinated, and by 1965 the top personal income tax rate was cut to 70% and corporate income tax rates were also reduced. The Kennedy tax cuts did help expand the economy, resulting in a 106-month economic expansion during the 1960s, which was the longest expansion in U.S. history at that time. Individual income tax revenues grew by 85% from 1965 to 1970 and corporate tax revenues grew 29%, as Kennedy predicted."

http://www.aei-ideas.org/2012/11/president-kennedy-responds-...

Check out the video. Kennedy nailed it.

Krugman is the Worst. Economist. Ever.
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Kudlow was talking about this yesterday. There were 3 recessions in the 50's, and the tax rates didn't bring in the revenue expected, imagine that. The guest talking about it nailed it though, said Krugman was put out in front on this to make Obama seem more reasonable.
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Kudlow was talking about this yesterday. There were 3 recessions in the 50's, and the tax rates didn't bring in the revenue expected, imagine that. The guest talking about it nailed it though, said Krugman was put out in front on this to make Obama seem more reasonable.

I think it's interesting that the period that Krugman referred to brought in less revenue than any subsequent tax structure that we have tried since then. Our maximum revenue was when the highest rate was only 39.6% and the capital gains tax rate was cut to 20%.

http://si.wsj.net/public/resources/images/ED-AN743D_Reyno_G_...

The chart is from an article by Alan Reynolds:

Why 70% Tax Rates Won't Work

http://online.wsj.com/article/SB1000142405270230425930457637...
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