"The most direct and significant kind of federal action aiding economic growth is ... to cut the fetters which hold back private spending," the president said. He urged Congress to "reduce the burden on private income and the deterrents to private initiative which are imposed by our present tax system" and vowed not to retreat from his pledge of "an across-the-board, top-to-bottom cut in personal and corporate income taxes."
The evidence is clear, he told his audience, "that our present tax system ... exerts too heavy a drag on growth ... siphons out of the private economy too large a share of personal and business purchasing power, [and] reduces the financial incentives for personal effort, investment, and risk-taking." He insisted -- defying the class warriors -- on tax cuts not only for low-income workers but also "for those in the middle and upper brackets, who can thereby be encouraged to undertake additional efforts and ... invest more capital."