Veteran financial guru and former Ronald Reagan adviser Larry Kudlow warns that savvy investors shouldn’t think President Donald Trump’s tax-reform goal is dead on Capitol Hill just because healthcare reform has been derailed for now.
“I don’t agree that tax reform is dead,” he told CNBC.
“This is the 100th millionth time I’ve said this. I want to get a business tax cut,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.
“I believe Trump does too,” said Kudlow, who served as the Trump campaign’s senior economic adviser. “Wiser heads need to prevail. Here’s where experience matters. You can split off business from the personal, do the personal next year, the pressing need now is business. If you want to raise wages, cut business taxes,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.
Kudlow also explained that the quicker a corporate-tax cut is enacted, the faster and stronger the economy will grow.
“I think business tax cuts across the board gets 3 percent growth,” said Kudlow — host of “The Larry Kudlow Show” and author of “JFK and the Reagan Revolution: A Secret History of American Prosperity,”written with Brian Domitrovic and published by Portfolio.
“I’m going to assume 3 percent (economic growth) with a good strong business tax cut,” he explained. “I don’t think the Fed gets in the way of this particularly. That gets you, listen to this, $4.5 trillion in extra revenues. $4.5 trillion in extra revenues over 10 years which will pay for everything, everything!” that Trump wants to do to truly “Make America Great Again!”
In comparison, Kudlow said the Congressional Budget Office is predicting projecting 1.8 percent economic growth for the next 10 years. “Nonsense growth,” Kudlow said.
Kudlow also predicted to watch for Trump’s bussiness-savvy style and deal-making prowess to soon kick into high gear/
“I think President Trump is a can-do guy, and if you don’t get it done, he could replace people,” said Kudlow, who was a key architect of Trump’s tax platform and an early supporter of the real-estate billionaire’s campaign. “That’s his history. As a builder, and, frankly, in the campaign,” he said, pointing out that Trump had three campaign managers.
He also advised to be skeptical of disarray reported in the Trump White House.
“Give these guys a chance. It’s been reported a lot of infighting. I picked up a little of that in the conversations with folks, I don’t say anything huge. Look, you got to get through at least to the August recess,” he said.