Larry Kudlow, the moderator of ‘Kudlow,’ hurt the Biden administration’s economic policy on Thursday, saying that under the Biden-Yellen plan, jobs and businesses will be affected.
LARRY KUDLOW: These Biden’s tax hikes, if legislated and enforced, will greatly damage the home economy and our competitiveness overseas and again ̵1; I want to know if rates Entity goes to 28%, plus a state tax rate of 3.5%. The United States will have the highest corporate tax rate of all industrialized countries. This is where we are in the days before Trump.
Now, as these foreign countries lower corporate tax rates, either the 28% or 25% floating rates in Washington will help us compete. Twenty-five percent didn’t. Together with the state rates, that leaves us hardly in between the pack.
Let me stop here first, not related to political negotiations. This is about analysis. And the analysis is very easy. We have to look at what our competitors charge on the corporate income tax rate.
Under former President Trump’s 2017 tax cuts, the United States had the lowest rates of industrialized nations … including state and federal governments. And of course why the inversion dried up. People don’t want to leave government entities outside the United States.
But keep in mind that the 21 percent global minimum tax proposed by Finance Minister Janet Yellen will be disastrous, whatever Biden and Yellen are doing.They rate the tax rate and widen the tax base, that is 0 to 2. What Mr Trump has done is cutting tariffs and expanding the base to help pay off.
The deduction is the lower yield. That’s a good policy for businesses and individuals. That’s tax reform for growth. That is the supply side tax reform. We must be stationary You cannot start a base hack and then increase the tax rate. [under] Biden-Yellen planned the event and the business would be affected.
WATCH THE FULL MONOLOGUE OF LARRY KUDLOW HERE.