Larry Kudlow: Trump didn’t take tax cuts 2.0 off the table

Larry Kudlow: Trump didn’t take tax cuts 2.0 off the table


I THINK WE NEED TO BE CAREFUL ABOUT THAT. THE WHITE HOUSE CAN DO SOMETHING BUT IS NOT THE END-ALL BE-ALL. DAVID: LET’S TALK TO THE MAN IN THE CENTER. MANY THINGS IN THE WHITE HOUSE IN TERMS OF ECONOMIC POLICY. MR. LARRY KUDLOW NATIONAL ECONOMIC COUNCIL AND DIRECTOR AND A GOOD FRIEND FOR A LONG TIME AND KNOWS A LOT ABOUT TEXAS. LET’S START ABOUT TAXES LARRY, IF TAX CUTS HELP THE ECONOMY AND WE TALKED HOW MUCH THEY HELP THE ECONOMY, WHY WOULDN’T MORE TAX CUTS HELP THE ECONOMY NOW THAT IT SEEMS TO BE SLOWING A LITTLE?>>JUST TO BE VERY CLEAR, WE ARE NOT FORMULATING TAX POLICY FOR SUMP SORT OF NEAR ACTION. WE DO BELIEVE IN THE RECESSION TALK. I THINK THE ECONOMY IS VERY STRONG, I THINK THE CONSUMERS ARE LEADING IT, I THINK WE HAD A LOT ON THE MANUFACTURING BUSINESS AND COMPLEX BUT THE BUSINESS IS SHOWING COME BACK AND WE CAN TALK ABOUT THOSE NUMBERS LATER. WHAT I DO WANT TO SAY IS, WE HAVE BEEN FOR A WHILE, EVER SINCE I GOT HERE AND CONTINUE, WE ARE LOOKING AT WHAT IS SOMETIMES CALLED TAX CUT 2.0 TO IMPROVE THE LONG-TERM GROWTH OF THE ECONOMY. AS YOU SUGGESTED, LOWER MARGINAL TAX RATES, IMPROVE INCENTIVES, TO WORK, SAVE, INVEST AND TAKE RISKS AND ENTREPRENEURSHIP IN THE FIRST ROUND OF TAX CUTS IN THE PRESIDENT’S EARLY DAYS HAS REINVIGORATED ENTRANCE FROM THE ECONOMY, REBUILT THE ECONOMY AND WE ARE GROWING CLOSE TO 3% DESPITE VERY SEVERE MONETARY RESTRAINTS. TO CLARIFY AGAIN, THE TAX QUESTION, THERE IS NO REASON WHY WE SHOULD NOT BE, IN FACT WE ARE, DEVELOPING AGAIN TAX CUTS 2.0, WE ARE TOUCHING BASE WITH ALL OF THE KEY PEOPLE IN THE MINISTRATION. DAVID: IT SEEMS LIKE THE PRESIDENT TOOK 2.0 OFF THE TABLE.>>HE DIDN’T, WHAT HE WAS REFERRING TO WAS SOMETHING IMMEDIATE OR URGENT OR INTO RECESSION. WE JUST DID NOT BUY THE SCENARIO. DAVID: FORGIVE ME FOR INTERRUPTING, HOW SOON MIGHT WE SEE TAX CUTS, MORE TAX CUTS BEFORE THE ELECTION?>>BEFORE THE ELECTION, YES. YOU MIGHT EVEN SEE TAX CUT 2.0 WHICH WOULD DRIVE A PISTOL TAX RELEASE AND CREATE ADDITIONAL TAX INCENTIVES FOR MIDDLE-CLASS FOLKS FOR BLUE-COLLAR WORKERS, FOR SMALL BUSINESSES. ADDITIONAL INCENTIVES, ADDITIONAL TAX CUTS. AND YOU MIGHT SEE THAT DURING THE CAMPAIGN. TO BE PERFECTLY HONEST. THERE IS NOTHING IN THE NEAR TERM THAT’S WHAT THE PRESIDENT WAS GETTING AT, WE BELIEVE THE ECONOMY IS QUITE HEALTHY AND WE EXPECT SOME RELIEF ON SHORT-TERM INTEREST RATES COMING UP FROM THE BED AND SO FORTH. BUT LONGER RUN, WHY NOT. THE TAX CODE CAN USE MUCH MORE REFORM, MUCH LOWER MARGINAL RATES FOR INDIVIDUALS, BUSINESSES AND SO FORTH. WE HAVE MADE TREMENDOUS PROGRESS IN 2017, 2018, 2019 BUT WE HAVE MORE WORK TO DO. DAVID: YOU MADE PRETTY BIG NEWS. SUGGESTING THAT DURING THE CAMPAIGN ITSELF, LONG BEFORE THE ELECTION ITSELF, WE COULD SEE A ROLLOUT OF NEW TAX CUT PROPOSAL.>>YOU VERY MAY WELL SEE THAT. DAVID: WHAT KIND ARE WE LIKELY — YOU SAID MIDDLE-CLASS, THAT SOUND LIKE PAYROLL TAX CUTS?>>NO, I DON’T WANT TO GET INTO A LOT OF DETAIL BECAUSE THEY DON’T WANT TO GET AHEAD OF THE CURVE. BUT HIGHLY UNLIKELY WE WILL GO GO — THE IDEA OF SHORT-TERM PAYROLL TAX CUT THAT IT DOESN’T WORK, AND NEVER WORKS, IT HAS NO LASTING IMPACT, WE ARE LOOKING AT INCENTIVES — THE PERSONAL TAX RATE COULD EASILY BE LOWERED AND PROBABLY THE BRACKETS COULD BE SHRUNK. THAT IS A THOUGHT. SMALL BUSINESSES FOR EXAMPLE, COULD EASILY BENEFIT FROM ADDITIONAL TAX REFORM. FOR EXAMPLE, LLCS, THEY MIGHT EVEN BENEFIT IN MY EVEN WORKED HER WAY TO HELP OUR FRIENDS AND SOME OF THE STATES WHO WERE CONCERNED ABOUT THE SHRINKAGE OF THE TAX DEDUCTION THERE. FOR EXAMPLES, THE CAPITAL GAINS TAX COULD BE CHANGED OR REDUCED FROM 23.8% WHICH IS VERY, VERY HIGH. THERE IS A LOT OF THINGS THAT CAN BE DONE TO SIMPLE BY THE TAX CODE, TO HELP MIDDLE-CLASS AND SMALL BUSINESS, TO LOWER RATES TO CREATE INCENTIVES. AND THAT IS A LONGER TERM VIEW BECAUSE WERE VERY CONFIDENT ABOUT THE ECONOMY. AND YOU SAW TODAY FIRST TIME UNAPPOINTED PLANS, DENTON NEARLY 200,000 IN UNEXPECTED DROP. DAVID: WE ALSO SOLD A DOWNWARD REVISION OF PAST GAINS.>>THIS ASSIST LOCAL REVISION, YES I WILL ABSORB THAT AND TAKE A CLOSER LOOK. I’M JUST SAYING UNEMPLOYMENT CLAIMS ARE ONE OF THE BEST LEADING INDICATORS OF THE ECONOMY. SO I’M OPTIMISTIC ON THAT SCORE. CONSUMERS ARE WORKING, SPENDING, SAVING, THEIR WAGES ARE GOING UP. I THINK THAT’S CRUCIAL.>>GREAT TO SEE YOU. THE CONSUMER IS A BIG PIECE OF THE ECONOMY, THE CONSUMER IS ALIVE AND WELL AND IF YOU BELIEVE THAT THE TARIFFS ARE FAR HAVE AN IMPACT IN THE CONSUMER, A LOT OF FOLKS ARE WORRIED THAT THE PENDING TARIFFS WILL IF THE PRESIDENT CANNOT COME TO AN AGREEMENT WITH CHINA, WHAT IS THE CONTINGENCY PLAN?>>I DON’T WANT TO WHAT IF ON ANY OF THAT. WHAT I MIGHT SAY ON CHINA, THE DEPUTIES FROM THE TWO SIDES, THE DEPUTIES HAD A PRODUCTIVE CONFERENCE CALL YESTERDAY AND THEY ARE GOING TO COME BACK IN A FEW DAYS FOR A SECOND CONFERENCE CALL AND WE ARE LOOKING AT THE KEY ASPECTS OF A TRADE DEAL AND I BELIEVE THAT AT THE RIGHT TIME WHEN THE DEPUTIES REPORT FULLY, HOPEFULLY WE ARE STILL PLANNING ON HAVING THE CHINESE COME HERE TO WASHINGTON, D.C. TO CONTINUE THE NEGOTIATIONS WHICH WERE INTERRUPTED LAST MAY. BUT I WANT TO EMPHASIZE THAT THE DEPUTIES CALL WAS CONSTRUCTIVE AND I’M NOT HERE TO REPORT RESULTS AND NOT HERE TO MAKE ANY PREDICTIONS, I’M JUST SAYING THAT THIS PROCESS THAT IS UNFOLDING IT LOOKS TO BE TO BE A POSITIVE ONE. DAVID: WE HAVE AN OLD FRIEND, ZACHARY IS HERE AND HAS A QUESTION FOR YOU.>>HI LARRY, ON THE TEAR QUESTIONS, MORE ABOUT HOW COMPANIES ARE DOING WITH THIS PARTICULARLY IN THE LEVEL OF UNCERTAINTY ABOUT HOW THEY DO THEY MAKE THEIR OWN CONTINGENCY PLANS PARTICULARLY WITH BUSINESSES ABROAD. IN THE TARIFF ACTIONS AND AS YOU ALL KNOW, A LOT OF COMPANIES WILL WITHHOLD OR PUT ON HOLD PLANS TO SEND MONEY WHETHER HIS PRODUCTION FACILITIES AND I’M NOT SAYING THAT OUTSOURCES. DAVID: .AVID:>>VID:>>WD:>>WITH DESIRE FOR UNCERTAINTY. [INAUDIBLE]>>GO AHEAD LARRY.>>HE WAS A GUEST ON THE COVER REPORT. AND YOU CAN SEE WHY. [LAUGHTER] DAVID: WE ONLY HAVE 30 SECONDS PRAY QUICKLY.>>THE PRESIDENT WILL CONTINUE HIS CAMPAIGN TO LOWER TRADE BARRIERS AS HE MUST DEFEND THE MARKET ECONOMY IN ALL SECTORS. WE ARE IN CONSTANT TOUCH WITH THEIR BUSINESSES, LARGE AND SMALL, CONSTANT TOUCH AND AGAIN, WE HOPE THAT THEY INVEST AND BUILD MORE IN THE UNITED STATES, THEY ALREADY ARE, I THINK CHINA HAS PROBLEMS AND PEOPLE ARE LEAVING CHINA, CHINA — CUT THEIR COSTS, THEIR LOSING SUPPLY IN AMERICAN BUSINESS IS VERY FLEXIBLE, VERY NIMBLE AND VERY ENTREPRENEURIAL AND DOING VERY WELL BY ALL ACCOUNTS, THE STOCK MARKET IS A MOST RECOUPING ALL OF THE CORRECTION IT HAD THAT SEEMED JUST HER THE POT. WE REMAIN VERY OPTIMISTIC. DAVID: WE HAVE TO LEAVE IT AT

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63 Comments

  1. НЕМЕДЛЕННО ЗВОНИТЕ В КРЕМЛЬ ВАШИМ ПОДЕЛЬНИКАМ…ВЫ ВСЕ ОДНА МАФИЯ…ПУСТЬ МЕНЯ НЕМЕДЛЕННО ВЕЗУТ НАВЕРХ…КЛЯНУСЬ МОЕЙ ОГНЕННОЙ ДУШОЙ Я ВАМ НИ ОДИН ЧАС НЕ ПРОЩУ ВСЕМ КТО РЕШАЕТ МОЮ СУДЬБУ…Я БРОШУ ВАС В ТЕМНИЦЫ ГДЕ ВЫ БУДЕТЕ ЗАДЫХАТЬСЯ ОТ ЗАПАХА СЕРОВОДОРОДА…

  2. The last tax cuts helped me. I got $130 extra per paycheck from the first Trump tax cuts. It helped and anyone that says it was for rich only is a lying idiot.

  3. Kudlow…. Not drunk today?
    This guy is an uneducated clown… Bigger deficit Larry?
    Transformation of what?
    PE ratio is crap.

  4. I hope Trump has his special shoes on which support him during jumping from plan to plan, jumping to conclusions, and jumping from lie to lie becz I would hate to see his bone spurs flare up? I want Dodger to be 100% healthy when America drains the WH swamp. Plus Trump needs to be able o walk into Jail in 2021 and not pull a Manfort and wheelchair around.

  5. ..did he just ACCIDENTALLY ALMOST TELL THE TRUTH.. "now that the economy is SLOWING A LITTLE".. CODE FOR RECESSION.. flip flop flip flop.. whatever happened to those CHINA TARIFFS.. delayed like payroll tax concession. Another TRUMP BRAIN FART.. LIKE GREENLAND

  6. Larry is great as always, love his honesty and straightforwardness without trying denigrating anyone…keep up the great work! One thing I wish they'd do is instead of trying to make a deal with China they should instead make some kind of trade/manufacturing deal with South America…why would anyone want to support a Communist regime just to get some cheaper crap that could instead benefit democratic countries.

  7. Delivering tax cuts 2.0 two months before the election would bury Democrats in 2020. When people see an immediate pay bump, people will be mad Democrats have been screwing them for so long.

  8. Larry has turned into the promoter and chief for trump. Who cares about responsible fiscal policy. Stock market is propped by govt debt. Let’s have a 2 trillion deficit each year

  9. What we have here is a truly mentally ill president……Similar to a cancerous growth that needs to be removed

  10. I sure hope we get more tax cuts. Not enough of the money the institutions, management, and corrupt politicians have defrauded the American People of for the past four decades has been returned yet. It's not like the big businesses have allowed much trickle down to us of what they got the last time. It's time the People were given the advantage.

  11. what about lower/middle class?? NOTHING? After 40 yrs? btw lower middle class bracket is 45000 to 75000 a year for those who care

  12. If this guy thinks the China Tariffs have had a negligible effect on the US consumer then this is the guy I will never go to for financial advice.

  13. I love Mr Kudlow. I have followed him since 2006 all through his cnbc days until now. He is a very good negotiator to boot

  14. This guy work bush in 2007 he were head ecomey break down. In 2008 Aug what happen break down Ecomey. He yes man
    .

  15. All I have to say was that stocks were up trending today in the morning. And then it crashed because of a tweet from Trump and trade wars. I know that's not all correlated to the economy, but that's all I have to say. I wonder whose bad for the economy….

  16. If United States doesn’t change the rules on international trade deals with China and other country its economy will go down the drain due to past mistake.

  17. Kudlow was just named to the Swervy Commission on Come Sit on Uncle Larrys Lap and let him mansplain what our fearless leader is doing for the billionaires! Oh GOD YEH!

  18. I don't know how our economy could possible get derailed with such a stable genius like our gameshow reality host senile diaper wearing moron in the white house spending 9/10th of his time golfing and the rest tweeting! Cuz Kudlow is probably the smartest ex-coke addict drunk from a Canadien network who can run our economy like i dunno, what, a clown car, or something super awesome! Where do i invest all my money! MAKIN IT RAIN!

  19. the bad news is that the personal exemptions were taken away and they hurt the working class, this means fewer votes for Trump from those who struggle and may pay more to the Third Reich IRS.

  20. What about the deficit and the amount tax cuts 1.0 added to it… I thought you guys were all about the deficit. Maybe that was a different Republican Party

  21. the lefty's want a recession…they will lie lie lie…there are no bubbles….the country is steaming…don't buy bank stocks..and you will be fine…energy…commodities…oil is dropping….even the Mexicans are going to Disney world…stock market short drops are designed to make money …buy low sell high…500 point drops are reactionary…and temporary..and the money is rolling in…low interest rates still…Trump has kicked everyone off the table….they all want to plat follow the leader…and he KNOWS it.!!.

  22. Trump said he would have tax reform in two stages: first, bring business and manufacturing here, and, second do more to relieve the taxes for the people.

    Question: Larry Kudlow, why don't you just say so?

  23. Larry Kudlow said in December 2007:
    "‘There’s no recession coming.’
    ‘The pessimistas were wrong. It’s not going to happen. The Bush boom is alive and well. It’s finishing up its sixth consecutive year with more to come.’

  24. cutting tax is for the riches, raising tax is for the poor. if the government cut 20% of tax for all people, the rich(1000000 dollar) will save 200000dollar, the poor(1dollar) will save 0.2dollar. then the government will lose 199999.8dollar to help the poor. the rich will become even more richer. the poor become even more poor.

  25. Safe to say this didn’t age very well. Now we know revenue dropped, spending went up, deficit skyrocketed and treasury yields plummeted. Those 2017 corporate tax cuts went to stock buy-backs and the economy went to crap in less than 18 months! Now Trump thinks a Walmart-dependent nation that relies on cheap imports is going to survive after forcing those companies back home? Prices will double! This has to be a record for screwing things up, even for Republicans 😂

  26. The President understands that what is good for the little man is good for the economy. Why is it that democrats cant figure this out?

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