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Budget deficits are not caused by wild-eyed spenders, but by slow economic growth and periodic recessions. and any new recession would break all deficit records. in short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low, and the soundest way to raise the revenues in the long run is to cut the rates now.
-John F. Kennedy
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Budget Deficits Are Not Caused By Wild-eyed

John F. Kennedy
Budget deficits are not caused by wild-eyed spenders, but by slow economic growth and periodic recessions. and any new recession would break all deficit records. in short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low, and the soundest way to raise the revenues in the long run is to cut the rates now.
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Running Cutting Long

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It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.
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Our practical choice is not between a tax-cut deficit and a budgetary surplus. it is between two kinds of deficits: a chronic deficit of inertia, as the unwanted result of inadequate revenues and a restricted economy; or a temporary deficit of transition, resulting from a tax cut designed to boost the economy, increase tax revenues, and achieve -- and i believe this can be done -- a budget surplus. the first type of deficit is a sign of waste and weakness; the second reflects an investment in the future.
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A tax cut means higher family income and higher business profits and a balanced federal budget....as the national income grows, the federal government will ultimately end up with more revenues. prosperity is the real way to balance our budget. by lowering tax rates, by increasing jobs and income, we can expand tax revenues and finally bring our budget into balance.
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I've always believed that a speculative bubble need not lead to a recession, as long as interest rates are cut quickly enough to stimulate alternative investments. but i had to face the fact that speculative bubbles usually are followed by recessions. my excuse has been that this was because the policy makers moved too slowly - that central banks were typically too slow to cut interest rates in the face of a burst bubble, giving the downturn time to build up a lot of momentum.
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Hear and attend and listen; for this is what befell and be-happened and became and was, o my best beloved, when the tame animals were wild. the dog was wild, and the horse was wild, and the cow was wild, and the sheep was wild, and the pig was wild -as wild as wild could be - and they walked in the wet wild woods by their wild lones. but the wildest of all the wild animals was the cat. he walked by himself and all places were alike to him
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Well, i think the reality is that as you study - when president kennedy cut marginal tax rates, when ronald reagan cut marginal tax rates, when president bush imposed those tax cuts, they actually generated economic growth. they expanded the economy. they expand tax revenues.
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