• Short Summary

    DURING A PRESS CONFERENCE IN WASHINGTON, JUNE 7, PRESIDENT KENNEDY PROMISED AMERICANS THAT HE WILL ASK CONGRESS TO AGREE A CUT IN INDIVIDUAL AND CORPORATE TAXES.

  • Description


    TRANSCRIPT: PRESIDENT KENNEDY: "I HAVE A BRIEF PRELIMINARY STATEMENT. I WOULD LIKE TO SAY A FEW WORDS ABOUT OUR ECONOMIC OUTLOOK AND PROGRAMME.TAXATION. IN THE FIRST PLACE, OUR TAX STRUCTURE AS PRESENTLY WEIGHTED, EXPERTS TOO HEAVY A DRAIN ON A PROSPERING ECONOMY. COMPARED, FOR EXAMPLE, TO THE NET DRAIN IN COMPETING COMMON MARKET NATIONS, IF THE UNITED STATES WERE NOW WORKING AT FULL EMPLOYMENT AND FULL CAPACITY, THIS WOULD PRODUCE A BUDGET SURPLUS AT PRESENT TAXATION RATES OF ABOUT $8,,000,000,000 THIS YEAR. IT INDICATES WHAT A HEAVY TAX STRUCTURE WE HAVE AND IT ALSO INDICATES THE EFFECT THIS HEAVY TAX STRUCTURE HAS ON THE ECONOMY ON THE RECESSION PERIOD. WE SAW THAT AFTER THE '58 RECESSION, WE'VE SEEN IT AFTER THE '60 RECESSION IN THE LAST MONTH. WE HAVE PROPOSED, THEREFORE, THE FOLLOWING: ONE, A 1,300,000,000 TAX CREDIT OF 8 PER CENT ON NEW INVESTMENT IN MACHINERY AND EQUIPMENT, WHICH WILL INCREASE THE TYPICAL RATE OF POTENTIAL PROFITS ON MODERN PLANT EXPANSION IN THIS COUNTRY TO THE SAME EXTENT, FOR EXAMPLE, AS 20 TO 32 PER CENT ON THE PROFITS TO BE REALIZED FROM A NEW TEN-YEAR ASSET. A TAX BILL CONTAINING THIS STIMULUS AND OFFSETTING REVENUE MEASURES HAS BEEN BEFORE THE CONGRESS FOR WELL OVER A YEAR. AND I AM HOPEFUL, PARTICULARLY, THAT IT CAN BE PASSED VERY SHORTLY, BECAUSE ONE OF THE AREAS OF CONCERN IN THE ECONOMY HAS BEEN THE SLOWNESS OF PLANT INVESTMENT. AND I THINK THAT IF WE CAN SETTLE THIS MATTER OF THE TAX CREDIT QUICKLY, I THINK IT CAN HAVE A MOST STIMULATING EFFECT ON NEW PLANT INVESTMENT THIS YEAR."




    Initials IM/V/JH/BB



    Script is copyright Reuters Limited. All rights reserved

    Background: DURING A PRESS CONFERENCE IN WASHINGTON, JUNE 7, PRESIDENT KENNEDY PROMISED AMERICANS THAT HE WILL ASK CONGRESS TO AGREE A CUT IN INDIVIDUAL AND CORPORATE TAXES. THE NEW TAX STRUCTURE SHOULD BE EFFECTIVE FROM JANUARY 1, 1963.

    IN HIS STATEMENT, THE PRESIDENT STRESSED THE NEED FOR HIS TAX CUTS TO AID INDUSTRIAL AND COMMERCIAL EXPANSION.

  • Tags

  • Data

    Film ID:
    VLVA1PO9XOAW1U22VWADXVBH1GTQD
    Media URN:
    VLVA1PO9XOAW1U22VWADXVBH1GTQD
    Group:
    Reuters - Including Visnews
    Archive:
    Reuters
    Issue Date:
    08/06/1962
    Sound:
    Unknown
    HD Format:
    MP4
    Stock:
    Black & White
    Duration:
    00:01:26:00
    Time in/Out:
    /
    Canister:
    N/A

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