On tax cuts, Trump is the modern day JFK

[Catholic Crusader]

Oh my, CNN accidentally posted a somewhat factual article online. I better post it here before it disappears. Would JFK be a Republican today? I say yes. What do you say. He was strong on building nukes and the military, he was against abortion and gay marriage, and here we see him on tax cuts:

On tax cuts, Trump is the modern day JFK
https://www.cnn.com/2017/12/14/opinions/trump-modern-jfk-opinion-moore/index.html

"How sad is it that the party that brought us John F. Kennedy's tax cuts, economic growth and higher wages is now the party that puts redistribution ahead of prosperity.

Not a single House Democrat on November 16 or Senate Democrat on December 2 voted for their version of the Tax Cuts and Jobs Act. Not one.

Some argue that the Trump tax cut will increase the deficit, but they should listen to the wisdom of JFK in 1962, when he, too, was battling a large deficit. President Kennedy declared at the New York Economic Club that "it is a paradoxical truth that tax rates are too high today and tax revenues are too low -- and the soundest way to raise revenues in the long run is to cut rates now.''

JFK knew that America's biggest problem was not the budget deficit but a growth deficit. And based on Donald Trump's proposed tax cuts, he seems to share JFK's wisdom.

Kennedy was, of course, proven exactly right. After the tax cuts were enacted after his death, America experienced one of the greatest periods of prosperity in our history.

Larry Kudlow's 2016 book "JFK and The Reagan Revolution" documented the post-JFK tax cut growth spurt. "The tax payments by the wealthiest filers nearly doubled," he wrote. "We had many quarters of 6% growth back then."

That same effect was duplicated when Ronald Reagan chopped the top income tax rate from 70 to 28% and the corporate rate from 46 to 34%. The share of taxes paid by the richest 1% rose around 6% from 1980 to 1990. Total tax revenues surged from $517 billion in 1980 to just over $1 trillion by 1990.

Which brings us back to the 21st century "progressive" Democrats‎. In 1986, Reagan's tax reform bill passed the US Senate -- are you sitting down? -- by a vote of 97-3. This included the votes of such prominent Democrats as Bill Bradley, Ted Kennedy, Howard Metzenbaum, and Sam Nunn.

In 1997, Bill Clinton -- who admittedly raised taxes in 1993 -- signed into law one of the biggest bipartisan tax cuts in history, including a slashing of the capital gains tax. Although some argue that Clinton's tax cuts were not the cause of the economic prosperity that followed, I don't think it was a mere coincidence that America experienced a growth and employment boom so great that the budget reached a surplus.

Yet some seem to disregard this history and claim that tax cuts don't work. We also hear claims that Republicans are no longer the party of deficit reduction. Perhaps not. But the party has transformed itself into the party of growth. The Democrats are the new austerity party.

Democrats say they wish Trump had put forward a bipartisan tax plan, but what are the Democratic alternatives? Bernie Sanders' proposal would raise the top tax rate to over 50%. Can anyone with a straight face argue that this would help the economy?

The Democratic party today has repudiated JFK economics. Donald Trump has picked up that mantle. Readers can go to the Committee to Unleash Prosperity website and watch a video of JFK's wisdom on taxes.

As Kennedy said in his 1962 address on the state of the national economy, "Every dollar released from taxation that is spent or invested will help create a new job and a new salary."
Question: does that sound like Nancy Pelosi and Charles Schumer, or Donald Trump?

 

[patrick jane]

I'm still not tired of ALL the WINNING !!!

 

[Catholic Crusader]

I'm still not tired of ALL the WINNING !!!

"Ladies and gentlemen, I give you the Loser....."

 

[The Barbarian]

The difference, is JFK cut middle class taxes, and Trump cut taxes for himself.

After a few years, the middle class will actually experience a tax increase to fund Trump's own tax cut.

Down the road

The Joint Committee on Taxation predicted that taxpayers making $40,000 and up would see a tax cut immediately until 2025 under the law.

In 2019, filers at every income level will see a tax cut. The average person making $45,000 would see the amount of their income spent on federal taxes decrease from 10.9 percent to 9.9 percent, according to the committee's report.

The tax benefit shifts after 2025 when most changes for individual filers expire, including the lower tax brackets and cap on state and local tax deductions. After the individual provisions expire, all filers who make $75,000 or less annually will see a tax increase.
http://www.politifact.com/new-york/...-republican-tax-law-raise-middle-class-taxes/

Not to mention the three trillion dollar deficit this bill gave us. That's a huge tax increase on all of us, to be paid later.

Except for the very rich, who will not see their taxes go up in later years. So, not so much like JFK, um?

 

[Catholic Crusader]

Oh man, what is Barbara Aryan blabbing about now.

 

[Catholic Crusader]

President John F. Kennedy said in 1962, "The paradoxical truth is that the tax rates are too high today and tax revenues are too low and the soundest way to raise revenues in the long run is to cut rates now."

President Ronald Reagan said, "The more government takes in taxes, the less incentive people have to work. If, on the other hand, you reduce tax rats and allow people to spend or save more of what they earn, they'll become more industrious; they'll have more incentive to work hard, and money they earn will add fuel to the great economic machine that energizes our national progress. The result: more prosperity for all - and more revenue for government."

 

[Sherman]

Okay that was "dodging TAX is not a tax cut, Get real.

Even the dopes - PJ Groos Sick, and KKK know this. But hey, Ill go the whole hog for these retards.

:nuke:

​Target practice. BTW you just burned up any chance of ever coming back on a permanent basis.

 

[Sherman]

Shot down six of them.

 

[The Barbarian]

President John F. Kennedy said in 1962, "The paradoxical truth is that the tax rates are too high today and tax revenues are too low and the soundest way to raise revenues in the long run is to cut rates now."

President Ronald Reagan said, "The more government takes in taxes, the less incentive people have to work. If, on the other hand, you reduce tax rats and allow people to spend or save more of what they earn, they'll become more industrious; they'll have more incentive to work hard, and money they earn will add fuel to the great economic machine that energizes our national progress. The result: more prosperity for all - and more revenue for government."

That's like saying "if you pull back on the stick, your airplane will gain altitude." Maybe it will, and maybe it won't.

Like taxes and the economy, what happens depends on what the airplane is doing at the time. The experiment was tried in Kansas recently. Guess how that turned out. It was such a disaster, the even the republican-dominated legislature reluctantly intervened and shut down the governor's crackpot economic program.

 

[Catholic Crusader]

Shot down six of them.

You should get a picture of an F-22 Raptor.

 

[Catholic Crusader]

President John F. Kennedy said in 1962, "The paradoxical truth is that the tax rates are too high today and tax revenues are too low and the soundest way to raise revenues in the long run is to cut rates now."

President Ronald Reagan said, "The more government takes in taxes, the less incentive people have to work. If, on the other hand, you reduce tax rats and allow people to spend or save more of what they earn, they'll become more industrious; they'll have more incentive to work hard, and money they earn will add fuel to the great economic machine that energizes our national progress. The result: more prosperity for all - and more revenue for government."

That's like saying "if you pull back on the stick, your airplane will gain altitude." Maybe it will, and maybe it won't...........

No, that's not what its like saying.
It is very simple.

If you have a 0% tax rate you will collect no revenue.
If you have a 100% tax rate you will collect no revenue because no sane person will work or produce just to give everything away.

In between 0% and 100% there is a perfect rate which brings in revenue and still incentivizes growth and investment.

It is a FACT that when you raise taxes rates above that rate you actually get less revenue. Hence JFK used the word "paradox" to describe how lowering taxes actually increases revenues.

 

[Catholic Crusader]

.......Larry Kudlow's 2016 book "JFK and The Reagan Revolution" documented the post-JFK tax cut growth spurt. "The tax payments by the wealthiest filers nearly doubled," he wrote. "We had many quarters of 6% growth back then."..........

I know I should not bump an old thread, but this is relevant, because Larry Kudlow is now Director of the National Economic Council. Great choice by a great president!!

WINNING!!

 

[The Barbarian]

barbarian chuckles:
That's like saying "if you pull back on the stick, your airplane will gain altitude." Maybe it will, and maybe it won't.

Like taxes and the economy, what happens depends on what the airplane is doing at the time. The experiment was tried in Kansas recently. Guess how that turned out. It was such a disaster, the even the republican-dominated legislature reluctantly intervened and shut down the governor's crackpot economic program.

No, that's not what its like saying.

Yep. You've tried to simplify a very complex process. As I said, what effect anything has on an economy depends on what the economy is doing at the time.

It is very simple.

You think it's simple because you don't understand how it works. Remember Trump saying how simple it would be to replace Obamacare?

Trump: 'Nobody knew health care could be so complicated'

Anybody who knew anything at all about it, knew it would be complicated.

If you have a 0% tax rate you will collect no revenue.
If you have a 100% tax rate you will collect no revenue because no sane person will work or produce just to give everything away.

The problem for you, is the real world isn't like either of those. And the curve is very complicated, and multidimensional.

In between 0% and 100% there is a perfect rate which brings in revenue and still incentivizes growth and investment.

But the "perfect rate" keeps shifting as other factors change. Just like pulling back on the stick won't make an airplane do the same thing under differing conditions. Are you starting to figure out that it's not as easy as you were told?

It is a FACT that when you raise taxes rates above that rate you actually get less revenue.

Problem is, that rate is pretty difficult to figure out. In Kansas, Laffer said that the rate was too high, and cutting it would increase revenue. So they cut taxes. Guess what happened.

Yep. Revenue dropped like a rock. Finally, the legislature did an intervention and told Gov. Brownback that his experiment in supply-side economics was over. But it's going to be a long time before Kansas is back on its feet. Would you like me to show you some of the details?

Hence JFK used the word "paradox" to describe how lowering taxes actually increases revenues.

They cut taxes in Kansas,and revenues dropped catastrophically. Remember the airplane. Not so simple after all, is it?