Thom Hartmann: Tax Cuts- Kennedy vs. Reagan

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Source: Thom Hartmann- Ronald W. Reagan & John F. Kennedy

Source: Thom Hartmann: Tax Cuts- Kennedy vs Reagan

There are tax cuts and there are tax cuts. And before you cut taxes you need to know what type of tax system you currently have and then what type of economic system that you should have. And after you figure those things out and you are still looking to cut taxes, then you probably do not have the tax system that you should have, otherwise you wouldn’t be looking to cut taxes. But first you need to have a tax system that promotes economic and job growth, as well as economic freedom. So you don’t have so many people living in poverty and on public assistance, but also so people are encouraged to do well. And not be encouraged to go on public assistance. So you don’t want your taxes so high that government gets so much of the money which discourages productivity and be successful, if government is just going to take a lot of my money. Because why be productive when I can just have government take care of me at my expense?

But if you are going to cut taxes. You should cut taxes that encourages consumer spending and economic growth, if that is what the problems with the economy are. Lack of economic and job growth. America is producing jobs, but with the sluggish economic growth, not a lot of very good jobs. So you cut taxes for people who’ll spend the money, because money is very tight for them. Rather than cutting taxes for people who won’t spend the money, because they don’t need to. And will just pocket it and put it away in a bank account. Any country’s tax system is part of their economy. No government can exist without a tax system and taxpayers who are working and able to pay taxes. Otherwise the government wouldn’t have the resources to pay for the government operations that their people need them to do for them. But for government to be successful and for the economy to be successful, the tax system has to encourage economic and job growth, as well as economic freedom. So people are incentivized to be productive and make money.

To get to Ronald Reagan vs John Kennedy on tax cuts. Both President’s wanted to reform the U.S. tax code to encourage more economic and job growth in America. But as much as today’s Conservatives and Libertarians, want to reference Jack Kennedy when it comes to their arguments for tax cuts, President Kennedy and President Reagan were very different when it came to taxes and tax cuts. Both President’s inherited sluggish economies with high tax systems. The difference is that even though President Kennedy cut taxes on everyone including the wealthy in America, but that was because the wealthy were being taxes at 90% pre-tax deductions. And his tax cuts were primarily targeted to the middle class and people struggling in the middle class. And the other major difference being that JFK wasn’t a supply sider. His tax cuts were financed by cutting loopholes in the tax code. President Reagan’s tax cuts were financed through borrowing and adding that money to the deficit and national debt.

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About Derik Schneider

Blogger on everything that interests me and that I'm knowledgeable about.
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