“Our true choice is not between tax reduction, on the one hand, and the avoidance of large Federal deficits on the other. It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenue to balance our budget just as it will never produce enough jobs or enough profits. Surely the lesson of the last decade is that budget deficits are not caused by wild-eyed spenders but by slow economic growth and periodic recessions, and any new recession would break all deficit records. 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. The experience of a number of European countries and Japan have borne this out. This country's own experience with tax reduction in 1954 has borne this out. And the reason is that only full employment can balance the budget, and tax reduction can pave the way to that employment. The purpose of cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.”

— John F. Kennedy

Source: 1962, Address and Question and Answer Period at the Economic Club of New York

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John F. Kennedy 469

35th president of the United States of America 1917–1963

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“It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough jobs or enough profits.”

John F. Kennedy (1917–1963) 35th president of the United States of America

"Address and Question and Answer Period at the Economic Club of New York (549)" (14 December 1962) http://www.jfklibrary.org/Research/Research-Aids/Ready-Reference/JFK-Quotations.aspx
1962, Address and Question and Answer Period at the Economic Club of New York (549)

“A tax cut means higher family income and higher business profits and a balanced federal budget…. As the national income grows, the federal government will ultimately end up with more revenues. Prosperity is the real way to balance our budget. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and finally bring our budget into balance.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: "Radio and Television Address to the Nation on the Test Ban Treaty and the Tax Reduction Bill" (18 September 1963) http://www.presidency.ucsb.edu/ws/?pid=9413

“I repeat: our practical choice is not between a tax-cut deficit and a budgetary surplus. 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--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.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: 1962, Address and Question and Answer Period at the Economic Club of New York

“So that as I tried to say in my speech, we are not faced with the question of balancing our budget, or having a tax reduction. I believe we are faced with the fact that we are going to have a deficit mostly because of the sharp rise in the recent years in space and defense, and to increase our taxes sufficient to bring that budget into balance would be defeating, because of course it would provide a heavy deflationary effect on our economy, and move us into a recession at an accelerated rate.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: 1962, Address and Question and Answer Period at the Economic Club of New York

“Unfortunately, the Laffer curve did not work as advertised. Lower tax rates did not produce more tax revenues. They produced deficits.”

Robert Kuttner (1943) American journalist

Source: The Economic Illusion (1984), Chapter 5, Taxes, p. 208
Context: The total impact of the Reagan tax cuts on capital lowered the effective cost of capital to American industry by an estimated 1.2 percent. Unfortunately, the Laffer curve did not work as advertised. Lower tax rates did not produce more tax revenues. They produced deficits.

“To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.”

Ben Bernanke (1953) American economist

Speech given on Apr. 7, 2010 to the Dallas Regional Chamber of Commerce, "Economic Challenges: Past, Present and Future" http://www.federalreserve.gov/newsevents/speech/bernanke20100407a.pdf. (See pages 13-14 of the speech transcript).

“EU countries lose approximately €1,000 billion with tax avoidance. If Finland would receive of this €1,000 billion 1 % in relation to its population in the EU, it would be €10 billion. The famous deficit would be fixed up. If tax avaidance is not restricted we continue to have deficits and budget cuts.”

Satu Hassi (1951) Finnish politician and MEP

Variant: EU countries lose approximately €1,000 billion with tax avoidance. If Finland would receive of this €1,000 billion 1 % in relation to its population in the EU, it would be €10 billion. The famous deficit would be fixed up. If tax avaidance is not restricted we continue to have deficits and budget cuts.
Source: Satu Hassi: Veronkierto vai hyvinvointivaltio, Voima 10/213 In Finnish: EU-maiden arvioidaan menettävän veronkierron vuoksi 1000 miljardia euroa. - Jos Suomi saisi tuosta 1000 mrd eurosta prosentin, eli väestöosuutemme EU:ssa, se olisi 10 mrd. euroa. Kuuluisa kestävyysvaje olisi hoidettu. Ellei veronkiertoa suitsija, vajeista ja budjettileikkauksista päästä eroon.

“In any case of the budget deficit the private sector of the economy receives more from government expenditure than it pays in taxes.”

Michał Kalecki (1899–1970) Polish economist

Source: Theory of Economic Dynamics (1965), Chapter 3, The Determinants of Profits, p. 51

“The resolution of our current account deficit and household debt burdens does not strike me as overly worrisome, but that is certainly not the case for our fiscal deficit, which, according to the Congressional Budget Office, will rise significantly as the baby boomers start to retire in 2008. Our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces that stabilize other imbalances.”

Alan Greenspan (1926) 13th Chairman of the Federal Reserve in the United States

March 10, 2005 http://www.federalreserve.gov/boarddocs/speeches/2005/20050310/default.htm.
2000s

“Once we have funded our national security and our homeland security, the final great priority of my budget is economic security for the American people. To achieve these great national objectives — to win the war, protect the homeland, and revitalize our economy — our budget will run a deficit that will be small and short-term, so long as Congress restrains spending and acts in a fiscally responsible manner. We have clear priorities and we must act at home with the same purpose and resolve we have shown overseas: We'll prevail in the war, and we will defeat this recession.”

George W. Bush (1946) 43rd President of the United States

2000s, 2002, State of the Union address (January 2002)

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