Thursday, April 30, 2009

Kennedy knew it: Tax cuts stimulate economy

Our New Hampshire Democratic leadership can learn a lot from President John F. Kennedy on getting our state economy back on its feet.

Kennedy was a champion for fiscal prudence, lower taxation and investments back into the private sector to generate more revenue for the government. In 1962, during a news conference, Kennedy stated, "It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now ... Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy, which can bring a budget surplus."

Kennedy understood that increasing taxes has a negative impact on the economy. On Jan. 21, 1963, Kennedy made a testimony before Congress on tax reduction and reform: "Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort — thereby aborting our recoveries and stifling our national growth rate."

Today, many of New Hampshire's residents are putting their dreams on hold, watching every dollar spent, and laying awake at night unsure if they will have another paycheck. Our state representatives' spending has been unchecked, and they're now seeking to pass an unprecedented tax increase during the worst economic crisis since the Great Depression.

Recently, the New Hampshire House voted to increase meals, hotel and cigarettes tax. They are looking to add new taxes on gambling winnings and a capital gains tax of 5 percent. To burden the taxpayer more, the House included in the package a 15-cent gas tax increase.

New Hampshire residents need to let their voices be heard by e-mailing their representatives to remind them of the wisdom of JFK. To find your representative, Google search: NH General Court Who's My Legislator. To contact Gov. Lynch visit

Peter Horton


Peter Horton is a common sense democrat who I am proud to know.


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