A Brief Note On Lowering Taxs During The United States

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Alex Goff Micro July 21, 2015 Lowering Taxs There are many problems in the U.S. economy, mainly we don’t have enough jobs, and the jobs we do have are taxed too much to cover our nations debt. This is a challenging predicament that we are in but the popular solution to this problem is to lower taxes. With lower taxes, we can see positive economic growth, and with growth we can see a healthier economy. We have come from an era where the middle classes were factory workers, who could afford the American dream. Now we have moved into an era where we are taxed to cover the huge debt that the government has accumulated, and the American dream has all but vanished. Even though the future looks grim, looking back in American history, when taxes…show more content…
The president quickly realized what these high rates where doing to the economy, so he “proposed across-the-board tax rate reductions that reduced the top tax rate from more than 90 percent down to 70 percent” (mitchell) and tax revenue from 1961 to 1968 grew 62%. President John F. Kennedy remarked on his actions “an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits… In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now” (mitchell) stating that the path to the future needed for our economy to grow lower rates. His prediction was followed by rapid growth from 1965 to 1968 when the collections of tax grew and unemployment fell yearly. From 1961 to 1965, those with $1 million or more income doubled their tax payments as well. A third example in history where tax cuts helped the growth of the economy was during the Reagan administration. During the 1970s there was a “bracket creep,” which “pushed millions of taxpayers into higher tax brackets even though their inflation-adjusted incomes were not rising.” (mitchell) From this “bracket creep” President Reagan decided in his first term of precedency that he would cut taxes. He hoped that this tax cut would help push Americans to work more, save more, and invest more. The result

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