This day in history: On this day in 1962, President Kennedy announced in a press conference that he would seek "an across-the-board reduction in personal and corporate income taxes", commenting that "Our tax structure, as presently weighted, exerts too heavy a drain on a prospering economy." At the time, earnings of more than $200,000 were in a 91% federal tax bracket. In 1965, the top rate would drop to 70%. By 1988, the highest rate would be 28% for income over $31,050.
By January of 1963, Kennedy would go on to say: “The largest single barrier to full employment of our manpower and resources and to a higher rate of economic growth is the unrealistically heavy drag of federal income taxes on private purchasing power, initiative and incentive.”
“Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort — thereby aborting our recoveries and stifling our national growth rate.”
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