Revenue Act of 1964

The United States Revenue Act of 1964 (Pub.L. 88–272), also known as the Tax Reduction Act, was a tax cut act proposed by President John F. Kennedy, passed by the 88th United States Congress, and signed into law by President Lyndon B. Johnson. The act became law on February 26, 1964.

Kennedy proposed the bill on the advice of Keynesian economist Walter Heller, who believed that temporary deficit spending would boost economic growth. The act was initially blocked by conservatives like Senator Harry F. Byrd, but Lyndon Johnson was able to guide it through Congress after the assassination of Kennedy in November 1963. The act cut federal income taxes by approximately twenty percent across the board, and the top federal income tax rate fell from 91 percent to 70 percent. The act also reduced the corporate tax from 52 percent to 48 percent and created a minimum standard deduction.

Summary of provisions

The Office of Tax Analysis of the United States Department of the Treasury summarized the tax changes as follows:[1]

  • reduced top marginal rate (on income over $100,000, roughly $848,000 in 2021 dollars, for individuals; and over $180,000; roughly $1,527,000 in 2021 dollars, for heads of households) from 91% to 70%
  • reduced corporate tax rate from 52% to 48%
  • phased-in acceleration of corporate estimated tax payments (through 1970)
  • created minimum standard deduction of $300 + $100/exemption (total $1,000 max)

Passage

The President addressed the issue of tax reform before the Economic Club of New York at the Waldorf-Astoria Hotel in New York City on December 14, 1962.[2] On the advice of Walter Heller, the Chairman of the Council of Economic Advisers, President John F. Kennedy proposed a tax cut designed to help spur economic growth.[3] Kennedy believed that the tax cut would stimulate consumer demand, which in turn would lead to higher economic growth, lower unemployment, and increased federal revenues.[4] Kennedy's support for a tax cut reflected his conversion to Keynesian economics, which favored temporary deficit spending in order to boost economic growth.[5] In January 1963, Kennedy presented Congress with a tax proposal that would reduce the top marginal tax rate from 91 percent to 65 percent, and lower the corporate tax rate from 52 percent to 47 percent; in total, the cut was projected to decrease income taxes by about $10 billion and corporate taxes by about $3.5 billion. The plan also included reforms designed to reduce the impact of itemized deductions, as well as provisions to help the elderly and handicapped.[6] Conservatives revolted at giving Kennedy a key legislative victory before the election of 1964 and blocked the bill in Congress.[7]

린든 B. 존슨은 케네디가 1963년 11월 암살된 후 대통령직을 승계했다. 존슨이 연방예산 총액을 1,000억 달러 미만으로 줄이기로 합의한 후 강력한 보수 성향의 해리 F 상원의원이 됐다. Byrd는 감세에 대한 반대 입장을 취했고, 1964년의 세입법으로서 그것의 통과를 위한 길을 열었다.[8] 존슨은 1964년 2월 26일 법안에 서명했다.[9] 오랫동안 지연되어온 감세안의 통과는 1964년의 시민권법을 추진하려는 노력을 촉진시켰다.[10]

임팩트

감세의 명시적인 목표는 개인 소득을 올리고, 소비를 늘리고, 자본 투자를 늘리는 것이었다. 존슨 대통령이 주창했던 메디케어 등 감세와 국내 지출 프로그램의 결합으로 이런 목표들이 크게 초과됐음을 보여주는 증거가 있다.[11] 실업률은 1964년 5.2%에서 1965년 4.5%로 떨어졌고, 1966년에는 3.8%로 떨어졌다.[11] [12] 초기 추정치는 감세로 인해 세수가 감소할 것으로 예상했으나 1964년과 1965년에 세수가 증가하였다.[11][13]

참조

  1. ^ Office of Tax Analysis (2003). "Revenue Effects of Major Tax Bills" (PDF). United States Department of the Treasury. Working Paper 81, page 12. Retrieved 6 December 2010.
  2. ^ Gerhard Peters and John T. Woolley (December 14, 1962). "John F. Kennedy: Address and Question and Answer Period at the Economic Club of New York". The American Presidency Project. Retrieved December 29, 2020. 수표 archive-url= 가치(도움말)
  3. ^ 패터슨 1996, 페이지 464–465.
  4. ^ 2006년 125페이지.
  5. ^ Giglio 2006, 페이지 136–137.
  6. ^ Giglio 2006, 페이지 139–141.
  7. ^ Ippolito, Dennis (2004). Why Budgets Matter: Budget Policy and American Politics. Penn State Press. pp. 173–175. ISBN 0-271-02260-4.
  8. ^ 번스타인 1996년, 29페이지, 33페이지.
  9. ^ 번스타인 1996, 페이지 37–38.
  10. ^ 1998년 달렉, 73-74페이지.
  11. ^ a b c Dolan, Chris; Frendreis, John.; Tatalovich, Raymond (2008). The Presidency and Economic Policy. Rowman & Littlefield. pp. 172–176. ISBN 978-0-7425-4729-2.
  12. ^ "Unemployment Rates for Years 1948-2009". United States Bureau of Labor Statistics. Retrieved 6 December 2010.
  13. ^ FY 2011 Budget of the United States Government: Historic Tables. 2010. pp. 21–22. ISBN 978-0-16-084797-4.

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