Our true choice is not between tax reduction on the one hand and the avoidance of large federal deficits on the other. It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget, just as it will never produce enough jobs or enough profits.
A tax cut means higher family income and higher business profits and a balanced federal budget....As the national income grows, the federal government will ultimately end up with more revenues. Prosperity is the real way to balance our budget. By lowering tax rates, by increasing jobs and income, we can expand tax revenues and finally bring our budget into balance.
I think we're going to have to do better. Mr. Nixon talks about our being the strongest country in the world. I think we are today, but we were far stronger relative to the Communists 5 years ago. And what is of great concern is that the balance of power is in danger of moving with them. They made a breakthrough in missiles and by 1961, '2, and '3, they will be outnumbering us in missiles.
If a beach-head of cooperation may push back the jungle of suspicion, let both sides join in creating a new endeavor, not a new balance of power, but a new world of law, where the strong are just and the weak secure and the peace preserved. All this will not be finished in the first one hundred days. Nor will it be finished in the first one thousand days, nor in the life of this Administration, nor even perhaps in our lifetime on this planet. But let us begin.
Abroad, the balance of power is shifting. There are new and more terrible weapons - new and uncertain nations - new pressures of population and deprivation.
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