Statement by the President on Receiving Report on Federal Taxes Collected During Fiscal Year 1965.

I AM advised by the Internal Revenue Service that gross collections of Federal taxes in the year ending June 30 reached an all-time high of $114.4 billion.

That represents an increase of $:2.2 billion over fiscal 1964.

In addition, the individual income tax collections in the second quarter of this year were running 13 percent ahead of those in the second quarter of 1964, and so far through August this trend is holding up.

I think that these figures are one more indication of the wisdom and effectiveness of the tax programs carried out in recent years.

These record tax collections result despite the fact that we have enacted a record income tax cut and a substantial excise tax cut.

As a result of these two measures alone, the Federal income tax burden next year will be lighter by $17.5 billion than it would have been without them. And that figure does not include the investment tax credit for business which was part of the Revenue Act of 1962, nor does it include the depreciation tax reform of 1962 which was liberalized early this year.

When these measures are taken into account, the total tax reduction effective in 1966 comes to more than $20 billion.

I am happy to report that, even with such massive tax reduction, we anticipate that Federal revenues for the 5-year period, fiscal 1961 to 1966, will have increased by over $18 billion-almost twice the increase over the previous 5 years when there were no tax cuts at all.