John F. Kennedy in Pres. Kennedy's of the Union speeches

On Budget & Economy: Since 1958 recession, the American economy is in trouble

Business bankruptcies have reached their highest level since the Great Depression. Since 1951 farm income has been squeezed down by 25%. Save for a brief period in 1958, insured unemployment is at the highest peak in our history.

Our recovery from the 1958 recession, moreover, was anemic and incomplete. Our Gross National Product never regained its full potential. Unemployment never returned to normal levels. Maximum use of our national industrial capacity was never restored.

In short, the American economy is in trouble. The most resourceful industrialized country on earth ranks among the last in the rate of economic growth. Since last spring our economic growth rate has actually receded. Business investment is in a decline. Profits have fallen below predicted levels. Construction is off.

On Foreign Policy: Free the Americas of all foreign domination and all tyranny

We are pledged to work with our sister republics to free the Americas of all such foreign domination and all tyranny, working toward the goal of a free hemisphere of free governments, extending from Cape Horn to the Arctic Circle.

To our sister republics to the south, we have pledged a new alliance for progress-alianza para progreso. Our goal is a free and prosperous Latin America, realizing for all its states and all its citizens a degree of economic and social progress that matches their historic contributions of culture, intellect and liberty.

On Foreign Policy: Alianza Para Progreso: Food-for-Peace to Latin America

• Appropriating the $500 million fund pledged by the Act of Bogota, to be used not as an instrument of the Cold War, but as a first step in the sound development of the Americas.
• That the Department of State coordinate at the highest level all policies and programs of concern to the Americas.
• That our delegates to the OAS strengthen that body as an instrument to preserve the peace and to prevent foreign domination anywhere in the Hemisphere.
• That we launch a new hemispheric attack on illiteracy and inadequate educational opportunities to all levels; and, finally,
• That a Food-for-Peace mission be sent immediately to Latin America to explore ways in which our vast food abundance can be used to help end hunger and malnutrition in certain areas of suffering in our own hemisphere.

On Free Trade: No need for restrictive trade policies

In short, we need not--and we shall not--take any action to increase the dollar price of gold from $35 an ounce--to impose exchange controls--to reduce our anti-recession efforts--to fall back on restrictive trade policies--or to weaken our commitments around the world.

On Homeland Security: More air-lift; more submarines; more missiles

• l have directed prompt attention to increase our air-lift capacity.
• I have directed prompt action to step up our Polaris submarine program.
• I have directed prompt action to accelerate our entire missile program.

On Jobs: Temporary recession increases in unemployment compensation

I will propose to the Congress measures to improve unemployment compensation through temporary increases in duration on a self-supporting basis--to provide more food for the families of the unemployed, and to aid their needy children--to redevelop our areas of chronic labor surplus--to expand the services of the U.S. Employment Offices--to stimulate housing and construction--to secure more purchasing power for our lowest paid workers by raising and expanding the minimum wage--to offer tax incentives for sound plant investment--to increase the development of our natural resources--to encourage price stability--and to take other steps aimed at insuring a prompt recovery.

On Technology: Cooperate with USSR on weather satellites & exploring space

Today this country is ahead in the science and technology of space, while the Soviet Union is ahead in the capacity to lift large vehicles into orbit. Both nations would help themselves as well as other nations by moving these endeavors from the bitter and wasteful competition of the Cold War. The United States would be willing to join with the Soviet Union and the scientists of all nations in a greater effort to make the fruits of this new knowledge available to all.

On Budget & Economy: Economic stimulus took us from recession to recovery

We are gratified--but we are not satisfied. Too many unemployed are still looking for the blessings of prosperity. As those who leave our schools and farms demand new jobs, automation takes old jobs away.

On Crime: New weapons to combat organized crime

On Drugs: Crack down on the illicit sale of habit-forming drugs

To protect our consumers from the careless and the unscrupulous, I shall recommend improvements in the Food and Drug laws-strengthening inspection and standards, halting unsafe and worthless products, preventing misleading labels, and cracking down on the illicit sale of habit-forming drugs.

On Free Trade: New instrument of trade policy with European Common Market

But the greatest challenge of all is posed by the growth of the European Common Market. Assuming the accession of the United Kingdom, there will arise across the Atlantic a trading partner behind a single external tariff similar to ours with an economy which nearly equals our own. Will we in this country adapt our thinking to these new prospects and patterns--or will we wait until events have passed us by?

This is the year to decide. The Reciprocal Trade Act is expiring. We need a new law--a wholly new approach--a bold new instrument of American trade policy. Our decision could well affect the economic growth of our Nation for a generation to come.

On Jobs: Permanent strengthening of our unemployment compensation

To expand our growth and job opportunities, I urge on the Congress these measures:
1. The Manpower Training and Development Act, to stop the waste of able-bodied men and women who want to work, but whose only skill has been replaced by a machine, or moved with a mill, or shut down with a mine;
2. The Youth Employment Opportunities Act, to help train and place not only the one million young Americans who are both out of school and out of work, but the twenty-six million young Americans entering the labor market in this decade;
3. The 8% tax credit for investment in machinery and equipment, which, combined with planned revisions of depreciation allowances, will spur our modernization, our growth, and our ability to compete abroad.
4. Presidential standby authority, upon a given rise in the rate of unemployment, to accelerate Federal and federally-aided capital improvement programs; and
5. A permanent strengthening of our unemployment compensation system.

On Tax Reform: Apply withholding requirements to dividends & interest

I am submitting for fiscal 1963 a balanced Federal Budget. This is a joint responsibility, requiring Congressional cooperation on three sources of income in particular:

1. An increase in postal rates, to end the postal deficit;
2. Passage of the tax reforms previously urged, to remove unwarranted tax preferences, and to apply to dividends and to interest the same withholding requirements we have long applied to wages; and
3. Extension of the present excise and corporation tax rates, except for those changes affecting transportation.

On Corporations: Shift tax payments of large corporations to a current time

[With other measures], this net reduction in tax liabilities of $10 billion will increase the purchasing power of American families and business enterprises in every tax bracket, with greatest increase going to our low-income consumers. I do not say that a measure for tax reduction and reform is the only way to achieve these goals.

• No doubt a massive increase in Federal spending could also create jobs & growth--but, in today's setting, private consumers, employers, & investors should be given a full opportunity first.
• No doubt a temporary tax cut could spur our economy--but a long run problem compels a long-run solution.
• No doubt a reduction in either individual or corporation taxes alone would be of great help--but corporations need customers and job seekers need jobs.

On Foreign Policy: Peace Corps carries spirit of America abroad

A year ago, less than 900 Peace Corps volunteers were on the job. A year from now they will number more than 9,000-men and women, aged 18 to 79, willing to give 2 years of their lives to helping people in other lands.

There are, in fact, nearly a million Americans serving their country and the cause of freedom in overseas posts, a record no other people can match. Surely those of us who stay at home should be glad to help indirectly; by supporting our aid programs; .by opening our doors to foreign visitors and diplomats and students; and by proving, day by day, by deed as well as word, that we are a just and generous people.

On Tax Reform: Obsolete tax system drags on private employment

To achieve these greater gains, one step, above all, is essential-- the enactment this year of a substantial reduction and revision in Federal income taxes. For it is increasingly clear that our obsolete tax system exerts too heavy a drag on private purchasing power, profits, and employment. Designed to check inflation in earlier years, it now checks growth instead.

I shall propose a permanent reduction in tax rates which will lower liabilities by $13.5 billion. Of this, $11 billion results from reducing individual tax rates, which now range between 20% and 91%, to a more sensible range of 14% to 65%. $2.5 billion results from reducing corporate tax rates, from 52%--which gives the Government today a majority interest in profits-to the permanent pre-Korean level of 47%.