This is my all time favorite President Kennedy story. President Kennedy in December 1962 basically said that raising taxes will not raise as much revenue as we think it will. And this is the quote that I always remember from this speech.
"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.”
So was President Kennedy right in his assumption that lowering tax rates is what brings in more revenue or not. There is a main reason why this is important to discuss.
I have heard President Obama talk about a balanced approach when it comes to the topic of raising the debt ceiling. President Obama has been vague about what this really means though. I must admit I am just assuming that raising some taxes would be a part of President Obama's plan but he has not really said what a balanced approach actually means. And if I am wrong about my assumption someone just explain the reason or reasons why I am wrong.
And if President Kennedy was right about the best way to get revenue was not by raising taxes would that mean the wrong approach would be raising taxes at this time because we would have to raise the debt ceiling yet again sooner than expected. But with the nature of politics at the current time nothing should really surprise a person anymore.
I want to keep this discussion focused on several things which are does raising tax rates bring in less revenue or not and also what this has to do with the recent discussion about raising the debt ceiling.
Edit: Part of this balanced approach by President Obama includes taxing the rich only. Many rich people that can make their income be whatever they want it to be. This also includes avoiding various taxes as well that many people can not. This sort of reminds me of President Obama when he said something similar about taxes. And promptly raised the taxes on cigarettes which touches every income level last time I checked.