Newsmax Finance Insider Larry Kudlow says President Donald Trump’s “incentive-based tax policy” will only go to show that Barack Obama’s war on business is officially over and American companies will be rewarded and no longer punished by unnecessary regulation.
“The business tax rates are coming down from roughly 40 (percent) to 15 or 20 (percent) along with expensing and repatriation," he told CNBC.
“If you keep more of what you earn and more of what you invest and more of what you risk, you will be incentivized to keep on doing it," said Kudlow, a radio talk-show host and CNBC senior contributor.
“Mr. Trump is saying, ‘We will reward success, not punish it,’” 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.
“He's also saying ‘The war against business is over,’” said Kudlow, who was a senior economist in the Reagan White House.
Kudlow, a Newsmax Finance Insider, also painted a rosy scenario of just what the American economy could flourish into, if and when Trump would be given the freedom and cooperation of lawmakers to fully enact his strategies.
“Growth, growth, growth. You want to lower the budget deficit, you want to lower the debt-to-GDP ratio, then grow the economy. Not one to two (percent) - but three or four (percent). Growth solves a lot of problems. Every one percentage point in GDP above the baseline, which is 2 percent, cuts deficits down by over $3 trillion over 10 years,” Kudlow explained.
“I don't want us to be an export-led economy, I want us to be a market-driven economy. If we are going to redo our tax incentives and regulations, we will once again be king of the hill for economic growth. I don't want to be like the other places,” said Kudlow, who served as the Trump campaign's senior economic adviser.
“I don't want us to be semi-Socialists. I want us to be free-market capitalists,” Kudlow explained. “I don't want the United States to have a VAT (value-added tax),” he said.
“Now I'm not opposed to government-spending restraint. I would like to get rid of the department of labor. I would like to get rid of department of commerce," Kudlow said. "I'm all for that. I would like to cut all the waste, fraud and abuse,” he said.
Kudlow did explain that the key to Trump's success is strong and clear guidance. Kudlow worries that the president may not be receiving such solid advice right now. Kudlow said someone must explain the actual consequences of Trump's plans to him, literally mapping out cause-and-effect scenarios.
Trump “is talking about lower trade gaps and a weaker dollar. If his policies go through and work as I believe they will, it's the reverse. You need somebody to go in there and say, ‘Think about this. Here's some charts about what happened in the past,'" Kudlow suggested.
While his first few weeks have certainly been volatile and controversial, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz recently told TheStreet.com.
Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.
“If you just say, ‘well we're for free trade and we're not going to look at the deals that we make’ -- that's not a good idea,” he said. “We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”
Horowitz's new book, "The Big Agenda: President Trump's Plan to Save America," reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.
Horowitz's new book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web. Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.
“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.
"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now
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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