Stimulate This

I just found this quote from JFK, on Riggsword, regarding tax cuts and their effects on the economy. Seems ‘ol JFK learned a lot about stimulation and it wasn’t just from Marilyn Monroe.

“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”

– John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964 (WorldNetDaily)

What’s so difficult to understand?


7 Responses to “Stimulate This”

  1. February 7, 2009 at 10:33 am

    JFK did not reign over one of the worst economic disasters ever. Nobody knows how to fix it. The Democrats HAVE to try the opposite of the what the Republicans have tried these past eight years, because it hasn’t worked!

  2. February 7, 2009 at 11:07 am

    It did work:

    “President Bush’s 2003 tax cuts lowered the rate to 35 percent and created the economic growth that has increased tax revenues each year — by 5.5 percent in 2004 and 14.5 percent–the largest in 25 years — in 2005.” (NCPA)

    We need to do more of it, is all. And this stimulus package is one big ball of waste. It cuts taxes in areas that won’t help the economy.

  3. February 7, 2009 at 12:53 pm

    Yes, tax cuts will stimulate the economy. But it depends on who is getting them. If the top 1% or 2% gets most of the tax cuts, then it won’t be quite stimulative. For they already have the means to consume. But if it’s the middle class, then there will be a true stimulus in the economy.

  4. 4 kernunos
    February 7, 2009 at 6:47 pm

    Futile, just trying the opposite is assanine and goes against the entire history of the US’s economic development. Just a question for you? What supports this spending and increases in government jobs? This is a simple one for ya.

  5. 5 kernunos
    February 7, 2009 at 6:49 pm

    By the way. the lowering of taxes does no require a prerequisite of good times to work. where do people get this crap from? Reagan inherited a worse economy by the way.

  6. February 8, 2009 at 8:37 am

    Again, kernunos, that’ll be enough of unwanted facts.

    Alan, I disagree that tax cuts at the top would not be helpful. Business is afterall, about profit. I’m not sure of the exact numbers, but I assume that a large corporation having more money because of tax cuts would allow it to hire more people. If you mean only giving rich individuals tax cuts, you may be right. However, I think the answer is to give tax cuts to the places that employ people. It’s a sorry tale that this solution always gets certain people so upset. The anti-industrialists, if you know what I mean.

    I’m not an economist, but I do know enough about the market to realize that the whole thing comes down to one word: Incentive. Give employers incentives to hire and everyone is better for it. Or continue down the road to Brave New World. We choose. We already have, it seems.

  7. 7 kernunos
    February 8, 2009 at 6:10 pm

    Yes, businesses make more jobs not the middle class. By the way, if your household income is over 100,000 then you are part of the top 10% income earners in the united states. If you are in the top 10% then you pay 70% of the tax burden. How is that for fair? I just like it when they talk about tax cuts for the lowest wage earners. That is quite a sham considering they do not actually pay income tax. Not saying that a middle class tax cut would not help but poor people do not create jobs. I think corporate income tax should be the focus anyway. The fastest growing economies in the world have the lowest corporate income tax rates. Hmmmmm, coincidence? I think not.

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