Part 4/9:
To illustrate the effectiveness of lowering tax rates, historical examples from the Kennedy and Reagan administrations offer compelling evidence. In the early 1960s, President John F. Kennedy made significant cuts to the top marginal tax rate, reducing it from a staggering 91% to 70%. Critics warned that this would deplete government coffers and benefit only the wealthy. Contrary to these predictions, the economy flourished with real GDP growth averaging 4.9% annually from 1962 to 1966, and federal tax revenues increased significantly.