There are a number of ways by which the Federal Government can meet its responsibilities to aid economic growth. We can and must improve American education and technical training. We can and must expand civilian research and technology. One of the great bottlenecks for this country's economic growth in this decade will be the shortage of doctorates in mathematics, engineering, and physics; a serious shortage with a great demand and an under-supply of highly trained manpower. We can and must step up the development of our natural resources.

But the most direct and significant kind of Federal action aiding economic growth is to make possible an increase in private consumption and investment demand--to cut the fetters which hold back private spending. In the past, this could be done in part by the increased use of credit and monetary tools, but our balance of payments situation today places limits on our use of those tools for expansion. It could also be done by increasing Federal expenditures more rapidly than necessary, but such a course would soon demoralize both the Government and our economy. If Government is to retain the confidence of the people, it must not spend more than can be justified on grounds of national need or spent with maximum efficiency. I shall say more on this in a moment.

The final and best means of strengthening demand among consumers and business is to reduce the burden on private income and the deterrents to private initiative which are imposed by our present tax system; and this administration pledged itself last summer to an across-the-board, top-to-bottom cut in personal and corporate income taxes to be enacted and become effective in 1963.

I am not talking about a "quickie" or a temporary tax cut, which would be more appropriate if a recession were imminent. Nor am I talking about giving the economy a mere shot in the arm, to ease some temporary complaint. I am talking about the accumulated evidence of the last 5 years that our present tax system, developed as it was, in good part, during World War II to restrain growth, exerts too heavy a drag on growth in peace time; that it siphons out of the private economy too large a share of personal and business purchasing power; that it reduces the financial incentives for personal effort, investment, and risk-taking.

In short, to increase demand and lift the economy, the Federal Government's most useful role is not to rush into a program of excessive increases in public expenditures, but to expand the incentives and opportunities for private expenditures........ Second, the new tax bill must increase private consumption as well as investment. Consumers are still spending between 92 and 94 'percent of their after-tax income, as they have every year since 1950. But that after-tax income could and should be greater, providing stronger markets for the products of American industry. When consumers purchase more goods, plants use more of their capacity, men are hired instead of laid off, investment increases and profits are high.

Corporate tax rates must also be cut to increase incentives and the availability of investment capital. The Government has already taken major steps this year to reduce business tax liability and to stimulate the modernization, replacement, and expansion of our productive plant and equipment. We have done this through the 1962 investment tax credit and through the liberalization of depreciation allowances--two essential parts of our first step in tax revision which amounted to a 10 percent reduction in corporate income taxes worth $2.5 billion. Now we need to increase consumer demand to make these measures fully effective--demand which will make more use of existing capacity and thus increase both profits and the incentive to invest. In fact, profits after taxes would be at least 15 percent higher today if we were operating at full employment.

For all these reasons, next year's tax bill should reduce personal as well as corporate income taxes, for those in the lower brackets, who are certain to spend their additional take-home pay, and for those in the middle and upper brackets, who can thereby be encouraged to undertake additional efforts and enabled to invest more capital.

The reason the government is in deficit is because you've got more than four million people unemployed and because the last five years you've had rather a sluggish growth. I am in favor of a tax cut because I'm concerned that we are going to have an increase in unemployement and that we may move into a period of economic downturn. I think this tax cut can give the stimulus to our economy over the next two to three years. I think it will provide for greater national wealth... I think it is in the best economic interests of this country, unless this country just wants to drag along, have five or six million people unemployed, have profits reduced, not have economic prospects, and have our budget unbalanced by a much larger proportion.

You have to be kidding - In the quoted statement JFK said he was liberal. All his kids are liberals. Teddy, his brother, was one of the biggest liberals in the Senate.
Little history - the whole South were conservatives in the 60's they were called Southern Democrats many of the liberals in the North were Republicans they were called Rockefeller Republicans. The South got over the Civil War and went Republican and the Rockefeller people went with the Democrats. Now both of the parties are for the most part of people that think alike. Of course we now have the Tea Party people that are more to the right than many Republicans. Any way many Southern Democrats from the 60's hold the same opinions that fit in with the Republicans or even Tea Partyers of today. - Dave

You have to be kidding - In the quoted statement JFK said he was liberal. All his kids are liberals. Teddy, his brother, was one of the biggest liberals in the Senate.
Little history - the whole South were conservatives in the 60's they were called Southern Democrats many of the liberals in the North were Republicans they were called Rockefeller Republicans. The South got over the Civil War and went Republican and the Rockefeller people went with the Democrats. Now both of the parties are for the most part of people that think alike. Of course we now have the Tea Party people that are more to the right than many Republicans. Any way many Southern Democrats from the 60's hold the same opinions that fit in with the Republicans or even Tea Partyers of today. - Dave

No, You're not just passing something along. This cartoon is an obvious statement. It is your right. I think it is bordering on tragic that those who do not agree with our current administration must resort to biased, dark humored, indignant cartoons in lieu of reasonable dialogue agreeing to disagree. As I said, knock yourself out displaying your 'right' but I believe there are more intellectually stimulating, more effective deliveries that might pique the questioning of those you disagree with. Just saying....