In requesting a tax cut in the early 1960s, President Kennedy said, "It is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise tax revenues in the long run is to cut tax rates now." This statement recognizes that ________.
1) Tax rates should be increased to raise tax revenues
2) Tax rates should be maintained at the current level
3) Tax rates should be reduced to raise tax revenues
4) Tax rates have no impact on tax revenues