The right’s misplaced love of JFK tax cuts

[ProSense]

The right’s misplaced love of JFK tax cuts

By Steve Benen

Bill O’Reilly repeated a familiar refrain to go after President Obama’s plan to increase taxes on the wealthy in 2013, relying on President Kennedy’s tax cuts in 1962 to make a misleading historical point.

Fox News’ Bill O’Reilly is urging President Obama to follow President John F. Kennedy’s footsteps and propose lowering taxes for the rich to spur economic growth. <…>

“(I)n 1962, President Kennedy proposed a big tax cut for the rich in order to stimulate the economy and encourage investment. And the rates have been moderating ever since.” (Fox News, The O’Reilly Factor, 9/22/11)

This comes up from time to time. It’s a little game the right plays to make it seem as if tax cuts are, or at least were, a bipartisan approach to economic growth. Given the spectacular failures of the Bush-era tax breaks, it’s tempting to think even the most stubborn Republican hack would give up and move on, but apparently that’s not the case.

So, let’s set the record straight. When Kennedy cut taxes, he lowered the top marginal tax from 91% to 65%. Many congressional Republicans opposed his plan at the time, citing concerns that the treasury couldn’t afford such a tax break — the Republican Party used to be quite serious about fiscal responsibility, but it’s been a half-century — but Kennedy proceeded anyway because the higher rates, instituted during World War II, were no longer necessary.

Also at the time, the country had very little debt — Eisenhower, thankfully, kept taxes high throughout the 1950s — almost no deficit. Fiscal conditions, obviously, are far different now.

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Frankly, a top marginal tax rate of 65 percent is a good idea.

[MADem]

1. Taxes during Kennedy's era (the 91 percent business) was moving money offshore.

He was smart to do what he did.

The rich bastards nowadays, with loopholes and exemptions, pay nothing. That's not right. If you could even get the same percentage the POOR pay in taxes out of 'em, it would be more than they pay now.

[mikekohr]

2. Facts are stubborn things, especially to Republicans

[3waygeek]

3. What the Rethugs don't mention...

is that the JFK tax cuts also closed a bunch of loopholes, so that a lot more income was made subject to taxation. Thus you could get more revenue from lower tax rates. As Dubya would have put it, JFK made the pie higher.

[LiberalFighter]

4. The key was the higher rates were no longer necessary.

[Mr Deltoid]

5. They repeat a line from the Nixon debate

But they omit what Kennedy said before and after that line which is that the rich pay nothing because of loopholes, Kennedy would close those loopholes thus increasing revenue.