feb 26, 1964 - Tax Reduction Act

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The Tax Reduction Act of 1962 was when the individual tax rates went from 91% to 70%. Supply-side tax cuts are aimed to stimulate capital formation. If successful, the cuts will shift both aggregate demand and aggregate supply because the price level for a supply of goods will be reduced, which often leads to an increase in demand for those goods. 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 Democrats like Senator Harry F. The act also expanded the earned income tax credit, the standard deduction, and the personal exemption, removing approximately six million lower-income Americans from the tax base. The act was initially blocked by democrats like Senator Harry F. Byrd, but Lyndon Johnson was able to guide it through Congress after the assassination of Kennedy in November 1963.

Major Enacted Tax Legislation, 1960-1969
Revenue Act of 1964 - Wikipedia
How Tax Cuts Affect the Economy
This Day In Market History: 1960s Bull Market Ends - SPDR Dow Jones Industrial Average ETF (ARCA:DIA), SPDR S&P 500 (ARCA:SPY) - Benzinga
Kennedy Slide of 1962 - Wikipedia
An Overview of the U.S. Department of Education-- Pg 1

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