So Now You’re Jack Kennedy?

| October 13 2012
David Leeper

One of my favorite parts of the Oct 11 VP debate appears in the first 27 seconds of the composite video below.  In that segment, Joe Biden categorically rejects the (Laffer Curve) notion that tax cuts could ever increase revenue to the government, and he ignorantly dismisses the claim that they ever have.

Biden then boorishly mocks Paul Ryan’s reference to John F. Kennedy’s 1962 tax cut initiative with his sure-to-be-remembered, bone-headed non-sequitur “So Now You’re Jack Kennedy?”.  This was all classic Joe Biden, who is sounding increasingly like a parody of himself.

The rest of the 2-minute video below (made by the Winston Group in 2010) supports Ryan’s point and refutes Biden’s ignorant assertions by interspersing modern-day questions with comments from JFK’s 1962 presentation to the Economic Club of New York.  Kennedy’s full speech is available at this link.

Almost exactly 50 years ago, President Kennedy sought to boost government revenue, reduce national debt, and spur employment through a series of tax cuts.  Then, as now, it was counterintuitive to think that tax cuts could actually increase tax revenue.  It was also counterintuitive when it was done in the Coolidge, Reagan, and Bush 43 administrations.  But it worked in all four cases.  The IRS actually gleaned more — repeat, more — total tax revenue from people in the highest income brackets than before the cuts.

How can this be so?  As Thomas Sowell has written:

[It is] because high-income people took their money out of tax shelters like municipal bonds and invested where they could get a higher rate of return, after these returns were not being taxed as much. This has happened repeatedly, over so many decades, in administrations of both parties, that you might think this would put an end to the “tax cuts for the rich” demagoguery.

But high-tax ideologues don’t see it that way. They would be horrified at the idea that we ought to lower our corporate tax rates, just so that more American businesses would do more of their business at home, providing more Americans with much-needed jobs.

The time is long overdue to start thinking about taxes as sources of revenue, not as ways of making political statements.

It is indeed long overdue, Dr. Sowell, but it hasn’t made dent in Big-Government Democrat or Big-Government Republican thinking.

Why?  As you yourself point out:

Someone once said that taxes are the price we pay for civilization. That may have been true when he said it, but today taxes are mostly the price we pay so that politicians can play Santa Claus and get reelected.

4 comments
smuehling
smuehling

Joe Biden does not have a clue how real business works and therefore would not understand how lowering taxes increases revenue. It is scary that we have an empty chair and a laugh box as the leaders of our country.

NeilFeuer
NeilFeuer

@neil Feuer  Yes, Ryan is JFK on steroids

NeilFeuer
NeilFeuer

 This is a very simple basic task on how lowering taxes frees up business, puts more disposable income in the consumer's hands, which allows them to buy and motivates our economy to grow in every  way which manner or form.  No businessman/woman wants their capital to be idle, they must invest to make a profit and grow, which is shared by all, that is the free market and hopw capitalism works. 

No one wants their money in banks that don't pay a return equal to the investment,, or to hide the money under the mattress, those days are gone, we must grow the conomy to survive and maintain our way of life.

David Leeper has shown us in this  2 minute video by JFK how it works and proven by the IRS no less.  There is also the writing from the Reagen administration , Bush, Sowell, etc, they all prove it works, to bad Biden and our POTUS do not understand this, they never will nor do they want to, they have such disdain for our system which is so evident in everything they haven't done in their term, and proven in this article, that simple..

So, I imagine, Ryan is JFK.

 

 

sleepergirl
sleepergirl

This is a great piece. One would think that having this economic theory spelled out so clearly would allow Liberals to see what's in front of their faces. We have to convince our president, however, to abandon his pursuit of "fairness" and adopt this "lower taxes, higher revenue" stragegy to do what's best for the country and all low, middle, and high income earners. "A rising tide lifts all boats."