Nuclear Test Ban Treaty
Troubled by the long-term dangers of radioactive contamination and nuclear weapons proliferation, Kennedy and Khrushchev agreed to negotiate a nuclear test ban treaty, originally conceived in Adlai Stevenson's 1956 presidential campaign. In their Vienna summit meeting in June 1961, Khrushchev and Kennedy both reached an informal understanding against nuclear testing, but the Soviet Union began testing nuclear weapons that September. In response, the United States conducted tests five days later. Shortly afterwards, new U.S. satellites began delivering images which made it clear that the Soviets were substantially behind the U.S. in the arms race. Nevertheless, the greater nuclear strength of the U.S. was of little value as long as the U.S.S.R. perceived itself to be at parity.
In July 1963, Kennedy sent W. Averell Harriman to Moscow to negotiate a treaty with the Soviets. The introductory sessions included Khrushchev, who later delegated Soviet representation to Andrei Gromyko. It quickly became clear that a comprehensive test ban would not be implemented; due largely to the reluctance of the Soviets to allow inspections that would verify compliance.
Ultimately, the United States, the United Kingdom, and the Soviet Union were the initial signatories to a limited treaty, which prohibited atomic testing on the ground, in the atmosphere, or underwater, but not underground. The U.S. Senate ratified this and Kennedy signed it into law in October 1963. France was quick to declare that it was free to continue developing and testing its nuclear defenses.
Domestic policy
Kennedy called his domestic program the "New Frontier". It ambitiously promised federal funding for education, medical care for the elderly, economic aid to rural regions, and government intervention to halt the recession. He also promised an end to racial discrimination, although his agenda, which included the endorsement of the Voter Education Project (VEP) in 1962, produced little progress in areas such as Mississippi, where the "VEP concluded that discrimination was so entrenched".
In his 1963 State of the Union address, he proposed substantial tax reform and a reduction in income tax rates from the current range of 20–90% to a range of 14–65% as well as a reduction in the corporate tax rates from 52 to 47%. Kennedy added that the top rate should be set at 70% if certain deductions were not eliminated for high-income earners. Congress did not act until 1964, a year after his death, when the top individual rate was lowered to 70%, and the top corporate rate was set at 48%.
To the Economic Club of New York, he spoke in 1963 of "... the paradoxical truth that tax rates are too high and revenues too low; and the soundest way to raise revenue in the long term is to lower rates now." Congress passed few of Kennedy's major programs during his lifetime, but did vote them through in 1964 and 1965 under his successor Johnson.
Economy
Kennedy ended a period of tight fiscal policies, loosening monetary policy to keep interest rates down and to encourage growth of the economy. He presided over the first government budget to top the $100 billion mark, in 1962, and his first budget in 1961 resulted in the nation's first non-war, non-recession deficit. The economy, which had been through two recessions in three years and was in one when Kennedy took office, accelerated notably throughout his administration. Despite low inflation and interest rates, the GDP had grown by an average of only 2.2% per annum during the Eisenhower administration (scarcely more than population growth at the time), and it had declined by 1% during Eisenhower's last twelve months in office.
The economy turned around and prospered during Kennedy's years as President. The GDP expanded by an average of 5.5% from early-1961 to late-1963, while inflation remained steady at around 1% and unemployment eased.[247] Industrial production rose by 15% and motor vehicle sales increased by 40%. This rate of growth in GDP and industry continued until 1969, and has yet to be repeated for such a sustained period of time.
Attorney General Robert Kennedy took the position that steel executives had illegally colluded to fix prices. He stated, "We're going for broke. [...] their expense accounts, where they've been and what they've been doing. [...] the FBI is to interview them all. [...] we can't lose this." The administration's actions influenced U.S. Steel to rescind the price increase. The Wall Street Journal wrote that the administration had acted "by naked power, by threats, [and] by agents of the state security police". Yale law professor Charles Reich opined in The New Republic that the administration had violated civil liberties by calling a grand jury to indict U.S. Steel for collusion so quickly. An editorial in The New York Times praised Kennedy's actions and said that the steel industry's price increase "imperil[ed] the economic welfare of the country by inviting a tidal wave of inflation". Nevertheless, the administration's Bureau of Budget reported the price increase would have caused a net gain for the GDP as well as a net budget surplus. The stock market, which had steadily declined since Kennedy's election in 1960, dropped 10% shortly after the administration's action on the steel industry took place.
Federal and military death penalty
During his administration, Kennedy oversaw the last federal execution prior to Furman v. Georgia, a 1972 case that led to a moratorium on federal executions. Victor Feguer was sentenced to death by an Iowa federal court and was executed on March 15, 1963.[256] Kennedy commuted a death sentence imposed by a military court on seaman Jimmie Henderson on February 12, 1962, changing the penalty to life in prison.
On March 22, 1962, Kennedy signed into law HR5143 (PL87-423), which abolished the mandatory death penalty for first degree murder suspects in the District of Columbia, the only remaining jurisdiction in the United States with such a penalty. The death penalty has not been applied in the District of Columbia since 1957, and has now been abolished.