John F. Kennedy on the Economy and Taxes (2024)

JFK never forgot that he had been elected in 1960 by one of the smallest popular vote margins in US history. The next presidential election was never far from his mind—and seemed to preoccupy his brother Bobby. When liberal Democrats pressed him to promote progressive social programs, he would often point out that he had not won a mandate and remind them that he first had to be reelected.

Kennedy had campaigned on the slogan of “getting America moving again” (which the Nixon campaign staff had privately derided as the peristalsis plan). But, recovery from the 1958 recession had been very sluggish and unemployment remained perilously high—6.8% just after he took office. The Council of Economic Advisers urged him to attack unemployment with New Deal style spending but the president was worried that a large deficit ($7 billion) would be politically untenable in 1964. Unemployment did fall modestly, but it remained stagnant at nearly 6% well into 1963. The fact was that the New Frontier had been preoccupied with foreign affairs for three years and once the Limited Nuclear Test Ban Treaty was ratified, JFK realized that it was time to turn to the economy. The 1964 election was barely a year away and likely to be fought against an articulate economic conservative, Senator Barry Goldwater of Arizona.

In addition, JFK’s relationship with the business community had been uneasy from the start. His very public 1961 dispute with US Steel president Roger Blough over an increase in steel prices had reinforced the business community’s suspicions of his motives. Kennedy had won the battle but lost the war—the price increase was canceled but US Steel also announced that its new plants would be built abroad. By 1962, Kennedy’s domestic political fortunes seemed bleak. Unemployment remained high and the stock market had failed to recover after losing a quarter of its value. JFK also ignored the advice of key aides and endorsed efforts to enact medical care for workers over 65 under Social Security and risked his personal prestige by addressing a nationally televised “Medicare” rally in New York. By the time of the May 20 gathering, JFK knew the bill would fail in the Senate after defections by key Democrats, leaving him frustrated, furious, and depressed.

The president finally decided that only a bold domestic program, including tax cuts, would restore his political momentum. Declaring that the absence of recession is not tantamount to economic growth, the president proposed in 1963 to cut income taxes from a range of 20-91% to 14-65% He also proposed a cut in the corporate tax rate from 52% to 47%. Ironically, economic growth expanded in 1963, and Republicans and conservative Democrats in Congress insisted that reducing taxes without corresponding spending cuts was unacceptable. Kennedy disagreed, arguing that “a rising tide lifts all boats” and that strong economic growth would not continue without lower taxes.

The battle over the tax cut and the deficit continued unabated through 1963. The House Ways and Means Committee voted a tax bill out of committee in August and the grateful president reiterated that lowering taxes was the surest path to full employment and lower deficits. Polls showed that over 60% of Americans favored the tax cuts. But, even with the public support of key business leaders like Henry Ford II and David Rockefeller, the Congressional log jam remained unbroken. JFK became increasingly convinced that domestic issues, the economy and civil rights, rather than foreign policy, would prove to be decisive in his 1964 reelection campaign.

John F. Kennedy on the Economy and Taxes (2024)
Top Articles
Want Better GPU Performance? Update Your Nvidia and AMD Drivers Now
How Much Can You Make in Dividend Income? Free Spreadsheet
Skylar Vox Bra Size
Wisconsin Women's Volleyball Team Leaked Pictures
Our History | Lilly Grove Missionary Baptist Church - Houston, TX
Espn Expert Picks Week 2
Best Cav Commanders Rok
Gt Transfer Equivalency
World History Kazwire
Echo & the Bunnymen - Lips Like Sugar Lyrics
Darksteel Plate Deepwoken
Alejos Hut Henderson Tx
Equibase | International Results
Osborn-Checkliste: Ideen finden mit System
U Break It Near Me
Aldi Bruce B Downs
Www.craigslist.com Savannah Ga
How Taraswrld Leaks Exposed the Dark Side of TikTok Fame
15 Primewire Alternatives for Viewing Free Streams (2024)
Bay Area Craigslist Cars For Sale By Owner
Wood Chipper Rental Menards
Wrights Camper & Auto Sales Llc
Vht Shortener
The Powers Below Drop Rate
Encore Atlanta Cheer Competition
Taylored Services Hardeeville Sc
Kristy Ann Spillane
Shia Prayer Times Houston
Experity Installer
Robert A McDougal: XPP Tutorial
Sun Haven Pufferfish
Joplin Pets Craigslist
Myfxbook Historical Data
Sc Pick 4 Evening Archives
Topos De Bolos Engraçados
Www.craigslist.com Waco
Brandon Spikes Career Earnings
Florida Lottery Claim Appointment
Autum Catholic Store
Divinity: Original Sin II - How to Use the Conjurer Class
Celsius Claims Agent
Page 5747 – Christianity Today
The Jazz Scene: Queen Clarinet: Interview with Doreen Ketchens – International Clarinet Association
Abigail Cordova Murder
Erica Mena Net Worth Forbes
Www.homedepot .Com
French Linen krijtverf van Annie Sloan
Treatise On Jewelcrafting
Craigslist Cars For Sale By Owner Memphis Tn
Craigslist Psl
Uncle Pete's Wheeling Wv Menu
Costco Gas Price Fort Lauderdale
Latest Posts
Article information

Author: Francesca Jacobs Ret

Last Updated:

Views: 6426

Rating: 4.8 / 5 (68 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Francesca Jacobs Ret

Birthday: 1996-12-09

Address: Apt. 141 1406 Mitch Summit, New Teganshire, UT 82655-0699

Phone: +2296092334654

Job: Technology Architect

Hobby: Snowboarding, Scouting, Foreign language learning, Dowsing, Baton twirling, Sculpting, Cabaret

Introduction: My name is Francesca Jacobs Ret, I am a innocent, super, beautiful, charming, lucky, gentle, clever person who loves writing and wants to share my knowledge and understanding with you.