Does anyone the Kennedy Administration's stand on tax cuts? What about the Reagan's Administration?

Question

1. What was the Kennedy Administration's stand on tax cuts?
2. What was their (Kennedy Administration's) reasoning behind their stand?
3. What was the Reagan Administration's stand on tax cuts?
4. What was their (Reagan Administration's) reasoning behind their stand?

Any answers would be appreciated. Thanks.

Answer 1

To address your original question:

1. Kennedy and his administration did indeed support tax cuts. In fact, his proposed plan was larger (in some ways: as percentage of national income but in real dollars) than the one that Reagan would propose, when adjusted for inflation. It is important to note that the Vietnam conflict was escalating, and the Pentagon budget far surpassed today's as a percentage of GDP. Kennedy was responding to a downturn in the economy and believed that tax cuts contribute to economic growth. Give the people (or in Reagan's case, businesses) more money and they'll put it back into the economy. Ironically, his tax cut was passed after his death under the uberliberal Lyndon Johnson.

2. Regarding reasoning. some have argued that Kennedy was a demand-side tax cutter (as opposed to supply side economic models as favored by the Reagan administration). Demand-side theory, which rests on the beliefs of noted British economist John Maynard Keynes, states that consumerism and the resulting demand for goods and services drives an economy. Kennedy put money back in the hands of consumers to, as he claimed, "get this economy back on track." His top marginal tax rate was still 70 percent, way higher than under Reagan or today (I think it's 33% now).

3. Reagan of course wanted massive "tax relief." His idea was based on supply side economics: that is, giving money back to businesses, wealthy individuals and investors. They, according to his partisans and advisors, drove the economy.

4. As to reasoning: Reagan believed, to simplify, that government was the enemy of economic growth and a good society. Get rid of regulation, make gpverment smaller, stop entittlements, and most importantly, "give money back to the people." Or the rich corporations, as it were. But at this time the rich paid the most taxes and they got by far the most benefits (he also cut capital gains taxes which goes to investors, who at that time in particular represented the elite). The response? The idea of trickle down economics. Give the rich money and maybe they'll eat their cake and let some crumbs fall to the floor for the plebians to eat. As we know, this often does not happen.

Some people credit Reagan for a recovery from the 82-3 recession. Others point out that he started our steep decline into deficit spending.

Answer 2

Both Kennedy and Reagan were for tax cuts as a way to boost the economy. Not real sure of what Kennedy did. Reagan's tax cuts, although the effects took a bit of time to catch up with the policy, created the great financial boom in the late 80's and 90's.
I got this info off of Wikipedia about Reagan. "His economic policy of supply-side economics, popularly known as "Reaganomics", is noted for a 25% cut in the income tax, reduction in inflation, reduction in interest rates, increased military spending, increased income inequality, increased deficits and national debt, a temporary solution to the Social Security issue, elimination of loopholes in the tax code, continued deregulation of business, and a sharp recession in 1981-1982 followed by an economic expansion starting in 1982." Hope this helps.

Answer 3

I don't know enough about the Kennedy administration, although I'm pretty sure Kennedy wasn't a big fan of tax cuts, but I can tell you about the Reagan administration.

Reagan believed very strongly in tax cuts. He believed that this gave people more of their own money, which would encourage people to spend their money on products. This spending creates demand and employers would have to hire more people to meet demand. This means more people are making, and keeping, more money resulting in more jobs and greater economic prosperity. In short, tax cuts=greater prosperity.

EDIT:
I did some looking, and apparently Kennedy pushed for a tax reform that did include tax cuts to income taxes. But I can't tell you why he pushed for that, especially considering his domestic program, "New Frontier", would have increased government spending.

Answer 4

In 1963, Kennedy proposed a tax reform that included income tax cuts, but this was not passed by the Congress until 1964, after his death. It is one of the largest tax cuts in modern U.S. history, even surpassing the Reagan tax cut of 1981.

Answer 5

by skill of and great they're of the concept authorities is the engine of the commercial equipment. even as we've self belief that its the those who're that. They then imagine that by skill of increasing taxes, really on the "wealthy" and then shifting the money by skill of a ordinary and complicated forms to the "undesirable" they magically stimulate the commercial equipment. undemanding expertise of economics refutes this socialist and idealistic idea. My prefered tax approach is a nationwide sales tax.. no human being is exempt. Then strip out all income and payroll taxes. This, of route, may have democrats and some republicans(john mcaine) howling in discomfort.

Answer 6

Reagan Administration's said..........wait i forget. where am i?

Answer 7

Why is this important to you now.?..It is irrelevant...
You can't go back in time and change anything .