‘Kudlow’ host says ‘be careful what you want’ when it comes to corporate taxes.
Larry Kudlow, host of ‘Kudlow’, on Thursday downplayed the economic policy of the Biden government, saying under the “Biden-Yellen plan will work and businesses suffer under it.”
LARRY KUDLOW: If the legislation and implementation of these Biden tax increases hurt the economy at home and our competitiveness abroad? And once again – I want to note that if the corporate rate rises to 28%, plus the tax rates of 3.5%, the US will have the highest tax rates among all the industrialized countries. This was where we were before the Trump days.
Because these foreign countries have lowered their corporate tax rates, the rate of 28% or 25% in Washington will not help our competitiveness. Twenty-five percent just do not. When combined with government rates, it will hardly put us in the middle of the pack.
Let me just stop here, it’s not about political bargaining. This is about an analysis. And the analysis is very simple. We need to look at what our competitors charge for corporate tax rates.
Under the former presidential trump card’s tax cuts in 2017, the US had the lowest rates of industrialized countries … and that includes state and federal states. And of course, that’s why inversions dried up. People do not want to leave the capital outside the United States
Remember this too: the 21 percent global minimum tax proposed by Treasury Secretary Janet Yellen would be a disaster. What Biden and Yellen do, they assess the tax rate and broaden the tax base. It’s 0 for 2. What mr. What Trump has done is to lower the tax rate and then increase the base to pay for it.
Deductions were deducted in exchange for lower rates. This is a good policy for businesses and individuals. This is tax reform for growth. This is tax reform on the supply side. We have to stick to it. You can not start chopping away the base and raising tax rates. [under] the Biden-Yellen plan is working and businesses will suffer from it.
WATCH LARRY KUDLOW’S FULL MONOLOGY HERE