Tags: kudlow | economy | investment | boom

Kudlow: US Economy on Verge of Investment Boom

By    |   Tuesday, 26 December 2017 09:28 AM

Economic guru Larry Kudlow is very optimistic about America’s economic future now that President Donald Trump and Republican lawmakers have kept their vow of sweeping tax reform.

“I think the economy is on the verge, which you heard me say this, because of the tax changes and regulatory changes, we're on the front end of an investment boom,” the veteran financial guru and former Ronald Reagan adviser told CNBC.

“I haven't seen anything like this, these companies either declaring more investment equipment or wage increases in dividend it's phenomenal,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.

To be sure, Trump himself tweeted last week about his accomplishments.

“Our big and very popular Tax Cut and Reform Bill has taken on an unexpected new source of “love” - that is big companies and corporations showering their workers with bonuses. This is a phenomenon that nobody even thought of, and now it is the rage. Merry Christmas!”

With deregulation and reducing government influence, Trump has maintained 3 percent growth in quarters two and three of 2017. With this tax bill and growth projected up to 4 percent,  enough tax revenue increases are expected to balance what was originally deemed a $1.5 trillion tax cut for corporations and individuals by Congress' Joint Committee on Taxation.

However, Kudlow did warn that there are some storm clouds on the nation’s economic horizon.

“The first order of business in Washington is going to be big budget fight - big budget fight," said Kudlow, who served as the Trump campaign's senior economic adviser.

"They're operating on a short-term continuing resolution there's a friction that's going to go on inside the congress, Republican Party you want to raise defense spending, that's Trump administration policy," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

"Also Republican policy but at the same time, you need to offset that and then some on so-called discretionary nonentitlement spending. That's going to be a huge battle and start right away very important issue,” said the radio 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.

The JCT issued an updated report Friday, estimating an adjustment for growth would add just 0.7 percent to current growth, lowering the deficit hit to around $1.1 billion over 10 years.

Larry Kudlow is a senior contributor at CNBC. His new book is “JFK and the Reagan Revolution: A Secret History of American Prosperity,” written with Brian Domitrovic. To find out more about Larry Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com

(Newsmax wire services contributed to this report).

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Economic guru Larry Kudlow is very optimistic about America’s economic future now that President Donald Trump and Republican lawmakers have kept their vow of sweeping tax reform.
kudlow, economy, investment, boom
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2017-28-26
Tuesday, 26 December 2017 09:28 AM
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