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aint_no_life_nowhere

(21,925 posts) Fri Oct 12, 2012, 03:23 PM Oct 2012

Ryan used the JF Kennedy tax cut to claim that trickle down economics works

I'm not an economist and can't argue the issue from a position of authority. Does anyone have knowledge of whether JFK's actions are a solid example of successful supply side economics having worked? I have googled the issue but don't find any in-depth analyses of the question. I have seen it noted that the following is the case:

"...John F. Kennedy once remarked of economic growth that "a rising tide lifts all boats", but in this case, a tide that rose 17.6 feet managed to lift the typical boat only 5.9 feet. Two thirds of the rise benefitted only a minority, not the broad population. ..."

And we know that Clinton raised taxes and it helped the economy; Bush cut taxes and the economy nearly collapsed.

8 replies

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Ryan used the JF Kennedy tax cut to claim that trickle down economics works (Original Post) aint_no_life_nowhere Oct 2012 OP

when JFK did it Celebration Oct 2012 #1

Tax braket shifted down durin JFK days uponit7771 Oct 2012 #2

Kennedy Dropped The Top Tax Bracket From 90% To 72% ChoppinBroccoli Oct 2012 #3

How awesome would it have been if Biden said that! tarheelsunc Oct 2012 #4

No, what Kennedy did was lower the effective marginal tax rate from 90% nadinbrzezinski Oct 2012 #5

The Kennedy tax cut lowered top rates from 91% to 70%. Spider Jerusalem Oct 2012 #6

That was before globalization. moondust Oct 2012 #7

um... history... many years since Kennedy have proven trickle down is/was a lie fascisthunter Oct 2012 #8

Celebration

(15,812 posts)

1. when JFK did it

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 03:28 PM

Oct 2012

the marginal tax rates were as high as 90%. I don't doubt that trickle down worked in such an environment. With tax rates under 50%, the conditions are quite different, so we are comparing apples to oranges here.

uponit7771

(90,347 posts)

2. Tax braket shifted down durin JFK days

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 03:37 PM

Oct 2012

ChoppinBroccoli

(3,784 posts)

3. Kennedy Dropped The Top Tax Bracket From 90% To 72%

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 03:39 PM

Oct 2012

I wonder if Paul Lyin' would be cool with us raising the tax rate on the top bracket back to 72%. Because, after all, it produced a booming economy, right, Paul?

tarheelsunc

(2,117 posts)

4. How awesome would it have been if Biden said that!

Reply to ChoppinBroccoli (Reply #3)

Fri Oct 12, 2012, 03:42 PM

Oct 2012

nadinbrzezinski

(154,021 posts)

5. No, what Kennedy did was lower the effective marginal tax rate from 90%

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 03:42 PM

Oct 2012

going back to the Depression, to 70%... still maintained a high marginal tax rate... with loopholes, which many were closed, it remained over 50%.

Spider Jerusalem

(21,786 posts)

6. The Kennedy tax cut lowered top rates from 91% to 70%.

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 03:59 PM

Oct 2012

Part of the rationale was promoting capital investment and reducing reliance on tax avoidance schemes by the wealthy and those in the top bracket.

This message recognizes the basic soundness of our tax structure. But it also recognizes the changing needs and standards of our economic and international position, and the constructive reform needs to keep our tax system up to date and to maintain its equity. Previous messages have emphasized the need for prompt Congressional and Executive ACTION to alleviate the deficit in our international balance of payments-to increase the modernization, productivity and competitive status of American industry-to stimulate the expansion and growth of our economy-to eliminate to the extent possible economic injustice within our own society-and to maintain the level of revenues requested in my predecessor's Budget. In each of these endeavors, tax policy has an important role to play and necessary tax changes are herein proposed.

http://www.nationalcenter.org/JFKTaxes1961.html

Note the emphasis on "economic injustice"; he's not talking about the rich being over-taxed but rather on the rich being allowed preferential treatment in making itemised deductions. And he also called for the elimination of oil and gas subsidies and tax breaks.

moondust

(20,001 posts)

7. That was before globalization.

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 04:09 PM

Oct 2012

In those days companies were still growing their U.S. operations and capital recirculated through the U.S. economy. Not anymore.

fascisthunter

(29,381 posts)

8. um... history... many years since Kennedy have proven trickle down is/was a lie

Reply to aint_no_life_nowhere (Original post)

Fri Oct 12, 2012, 04:13 PM

Oct 2012

It was a slick way of getting blue-collar folks to vote for the richie-rich party.

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