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.
Interpretation
Lowering tax rates can lead to increased revenue in the long run by fostering economic growth.
John F. Kennedy's quote highlights a paradox in taxation where high tax rates are associated with low revenue. He asserts that reducing tax rates can stimulate economic activity, ultimately resulting in a healthier economy capable of generating surplus revenue rather than deficits, suggesting that short-term sacrifices can lead to long-term gains.
In practice
During a political debate on economic policy.
The great battleground for the defense and expansion of freedom today is the whole southern half of the globe... the lands of the rising peoples. Their revolution is the greatest in human history. They seek an end to injustice, tyranny and exploitation. More than an end, they seek a beginning.
I had always enjoyed the title of Commander-in-Chief until I was informed ... that the only forces that cannot be transferred from Washington without my express permission are the members of the Marine Corps Band. Those are the only forces I have. I want it announced that we propose to hold the White House against all odds at least for some time to come.
I am talking about genuine peace, the kind of peace that makes life on earth worth living, the kind that enables men and nations to grow and to hope and to build a better life for their children - not merely peace for Americans but peace for all men and women - not merely peace in our time but peace for all time.
I just received the following wire from my generous Daddy; Dear Jack, Don't buy a single vote more than is necessary. I'll be damned if I'm going to pay for a landslide.
Tolerance implies no lack of commitment to one's own beliefs. Rather it condemns the oppression or persecution of others.
Mankind must put an end to war before war puts an end to mankind.
I will cut taxes - cut taxes - for 95 percent of all working families, because, in an economy like this, the last thing we should do is raise taxes on the middle class.
Industry entirely left to itself, would soon fall to ruin, and a nation letting everything alone would commit suicide.
You have to remember: what are incomes to banks are outgoes to families.
African countries lose billions every year because of tax dodging by big corporations and wealthy individuals. They lose billions more from overly generous tax incentives in a misguided belief that this is the only way to attract foreign investment.
Global capital markets pose the same kinds of problems that jet planes do. They are faster, more comfortable, and they get you where you are going better. But the crashes are much more spectacular.
I think there's a lot of merit in an international economy and global markets, but they're not sufficient because markets don't look after social needs.
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