OK...President Kennedy's name did come up. Mikey Pence said President Kennedy was for tax cuts. President Obama was very, very kind to little Mikey...he could have embarrassed the kid...
When President Kennedy proposed tax cuts, the tax rates in place in 1962 still were tax rates implemented to pay off the cost of WWII. They were very high...
Top US Marginal Income Tax Rates, 1913--2003 (TruthAndPolitics.org)
After taxes went up during the Eisenhower administration, Democrats lowered them starting in 1964.
Today we face frighteningly large deficits in the next generation, whereas Kennedy and Johnson thought they faced frighteningly large surpluses.
Why JFK Cut Taxes
So, what's your suggestion?... that we go back to taxing 70-90% of the top brackets?
They'll do what they always do, and just like they did under Carter. They'll do the SMART thing and shelter their money. They'll continue to move production off-shore.
The government cannot CREATE new dollars. New money is basically the difference between the cost of a product and the retail value of it. You can take a dollar out of Uncle Barry's pocket and put it in mine... but it's the same dollar. All you did was move it. You didn't produce a new one.
Do you really think that producers are going to invest in America when their future is uncertain, when they have no ability to put together a business plan or to forecast what their costs will be three years from now, while they've got Obama's disastrous social policies hanging over their heads? Do you honestly believe Cap-and-Tax, Obamacare, and Card Check are incentives for small employers to grow their businesses? Do you think higher taxes looming on the horizon will cause them to invest in growth, hire more people?
Personally, I don't think lowering taxes is enough. I think Mike Pence is wrong about that. I don't believe that a SANE person would invest in this economy right now. Not when it's become impossible to project costs and would be cheaper to legally ADOPT a prospective employee than hire him. Hell, it's impossible for a producer to even know who exactly will be running his business in the future. It might be him, but then again, it might be some frigging labor union.
Deficit spending, stimulus... can only work when the money actually makes it into the hands of consumers. And the other half of the equation is PRODUCTION. New dollars must be produced. The 'priming of the pump' can do that, but only if the environment is conducive to growth. Deficit spending is unsustainable. It's only supposed to be used to nudge the mechanism, then the economy is supposed to spin on its own.
Only something like 10% of Nancy Pelosi's Porkulus package has been spent. And I think it's clear that it's NOT making it into the hands of consumers. It can't prime the pump, and the mechanism won't respond anyway until the business climate becomes predictable.
While it's true that taxes are already lower than what they were before the Kennedy or the Reagan tax cuts... LOOK what happens when they're high:
The Laffer Curve: Past, Present, and Future
Read the entire article from Arthur Laffer. He discusses his Laffer Curve, the Harding-Coolidge cuts, the Kennedy cuts, the Reagan cuts, and goes into the economic health of lower tax states as opposed to higher tax states, as well as the effect of the flat tax on the former eastern-bloc countries. There are charts galore, including the one you just posted. Very informative.
Taxes are NOT the answer. The business climate must be stabilized.