Nancy Pelosi Says Tax Cuts Never Create Jobs, Both JFK And Reagan Prov

Following the passage of the House tax reform bill last week, House Minority Leader Nancy Pelosi invoked the familiar Democrat mantra that tax cuts only benefit the rich, then added they “never have” created jobs or paid for themselves. However, the records of former Presidents John F. Kennedy and Ronald Reagan prove otherwise.

“Republicans want you to believe that their trickle-down tax breaks for the rich will pay for themselves. (They) never have,” Pelosi proclaimed Thursday at news conference on Capitol Hill. “They say they’re going to create jobs and pay for themselves. Neither is true.”
But in fact, both were true of the Kennedy and Reagan tax cuts.

In a well-received address to the Economic Club of New York in December 1962, Kennedy advocated for “across-the-board, top-to-bottom cut in personal and corporate income taxes.” President Donald Trump and the Republicans are currently seeking to enact similar broad-based cuts.

“(I)t 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,” Kennedy said.

“I repeat: Our practical choice is not between a tax-cut deficit and a budgetary surplus,” Kennedy added.

“It is between two kinds of deficits: A chronic deficit of inertia, as the unwanted result of inadequate revenues and a restricted economy, or a temporary deficit of transition, resulting from a tax cut designed to boost the economy, increase tax revenues, and achieve, I believe — and I believe this can be done — a budget surplus.”

“The first type of deficit is a sign of waste and weakness; the second reflects an investment in the future,” he said.

To believe tax cuts "won't work" requires u to believe,w/out evidence or common sense on your side,that govt can spend your $ better than u.
In remarks to the nation that same year concerning his tax reform legislation, Kennedy predicted, “The billions of dollars this bill will place in the hands of the consumer and our businessmen will have both immediate and permanent benefits to our economy.”

Kennedy’s prognostication proved true. After his plan was adopted in 1964, tax revenues to the federal treasury increased over 60 percent by the end of the decade, unemployment fell to under 5 percent, and the nation enjoyed a budget surplus by the end of the 1960s.
Similarly, the United States experienced an economic boom following the Reagan tax cuts in the 1980s.

Reagan signed the first of a series of tax cuts into law in August of 1981. The legislation provided for tax cuts at every income level, taking the top rate from 70 to 50 percent. In 1986, the top rate would drop still further to 28 percent.

The corporate tax rate was also slashed from 46 to 34 percent.

Reagan’s tax plan proved a powerful elixir. The unemployment rate dropped to 5 percent and the economy grew a third larger, which was like adding the entire economy of Germany. Additionally, due to the incredible economic growth, revenues to the federal treasury nearly doubled during the 1980s.

In their 2009 book, “The End of Prosperity: How Higher Taxes Will Doom the Economy, Reagan economist Art Laffer and Stephen Moore contended the tax reforms implemented in the 1980s led to a 25-year economic boom, which included budget surpluses in the late 1990s and early 2000s.

Trump wrote in an op-ed in September, “In 1986, President Ronald Reagan led the effort to make America the most competitive nation in the world by cutting our business tax rate to 34%, well below the average rate of other developed nations at the time. It worked. Our economy boomed, the middle class thrived and median family income increased.”

However, he noted that the world learned from watching what happened in the United States.

“But our economic competitors did not sit still,” Trump explained. “They saw what we did and started lowering their business tax rates, too. Over the past 30 years, the average business tax rate among developed nations in the Organisation for Economic Co-operation and Development (OECD) fell from 45% to less than 24%.”

In the meantime, the U.S. has slightly raised its corporate rate to effectively between 35 to 39 percent, costing thousands of Americans their jobs.

The president argued that if the country can make its tax environment competitive relative to the rest of the world, it will set off an economic boom.

“Instead of exporting our jobs, we will export our goods, and lift millions of struggling citizens from welfare to work,” Trump wrote. “We will unleash America’s full potential. And in doing so, we will truly make America great again.”

https://www.youtube.com/watch?v=6E0WKbqRVNo