President Kennedy proposed a tax cut lowering the top marginal rate by 20%, from 91% to 71%, which was enacted in February 1964 (three months after Kennedy's assassination) by Lyndon Johnson. Gross National Product rose 10% in the first year of the tax cut, and economic growth averaged a rate of 4.5% from 1961 to 1968. Disposable personal income rose 15% in 1966 alone. Federal revenues increased dramatically from $94 billion in 1961 to $150 billion in 1967.
Tax people till the pips squeak: it doesn't fucking work.
1 comment:
Hmmm. 1964, eh, and GDP rose 10 per cent and collected taxes rose?
I think the vast expenditures of the Vietnam war contributed more than trickle-down economics. And let's not forget that the Civil Rights Act brought African Americans into the middle-class workforces, where they had once been barred, increasing consumption.
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