American citizens will spend, as history shows us, an overwhelming percentage of the extra, after-tax dollars left in their pockets, and this spending will broaden markets for businessmen, put idle machines to work, and require new machines and new factories to be built. The multiplied effect of these new private consumption and investment expenditures released by the tax cut will create a new market right here at home nearly equal to the gross national product of Canada and Australia combined. Fourth, a tax cut means higher family income and higher business profits and a balanced Federal budget. Every taxpayer and his family will have more money left over after taxes for a new car, a new home, new conveniences, education, and investment. Every businessman can keep a higher percentage of his profits in his cash register or put it to work expanding or improving his business, and as the national income grows, the Federal Government will ultimately end up with more revenues.
Prosperity is the real way to balance our budget.
Our tax rates are so high today that the growth of profits and pay checks in this country have been stunted. Our tax revenues have been depressed and our books for 7 out of the last 10 years have been in the red. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and bring finally our budget into balance, and to assist further in this effort we have pledged an even tighter rein on Federal expenditures, limiting our outlays to those activities which are fully essential to the Nation. Spending will be controlled and our deficit will be reduced. Fifth, and finally, a tax cut means new strength around the world for the American dollar and for freedom.