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Kudlow: Trump Gave Best Speech of His Presidency Monday Night

By    |   Tuesday, 22 August 2017 05:10 PM

Veteran financial guru Larry Kudlow praised President Donald Trump’s Monday night speech on U.S. military strategy on Afghanistan, proclaiming it to be a hallmark event of his tenure.

The former Ronald Reagan adviser also proclaimed that tax-code reform also is very likely.

“Trump gave the best speech of presidency last night and it was a unifying speech and that was very important after the event of last week,” Kudlow told CNBC.

“It was a healing speech and it was a unifying speech with rave reviews,” Kudlow said, noting that the stock market rallied Tuesday in apparent response to Trump’s actions.

“Markets are connected to Washington and this is the perfect example," said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.

On Wall Street, U.S. stocks ended higher, with each of the three major indexes posting their best one-day percentage gains in over a week, as lawmakers' comments on tax reform and the debt ceiling boosted investor optimism, Reuters reported.

The Dow Jones Industrial Average rose 196.21 points, or 0.9 percent, to 21,899.96, the S&P 500 gained 24.11 points, or 0.99 percent, to 2,452.48 and the Nasdaq Composite added 84.35 points, or 1.36 percent, to 6,297.48.

“Tax reforms and everything else is looking easy. That's what the market is telling you," said Kudlow, who served as the Trump campaign's senior economic adviser.

"You may get infrastructure and tax reform and full-blown tax reform or you may get ‘skinny’ tax reform,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

Kudlow lately has been calling for "skinny reform." In other words, Kudlow is proposing to cut the corporate tax rate to 15%, offer U.S. corporations a one-time tax holiday on profits generated overseas and brought back to the U.S., and allow companies to immediately "expense" new investments in plant and equipment, as opposed to writing those investments off over time.

Kudlow says Trump and his advisers have been fine-tuning a tax-reform plan in recent weeks. "They are narrowing down the possibilities," said Kudlow, who during the first term of the Reagan administration (1981–1985) was associate director for economics and planning in the Office of Management and Budget (OMB).

“If you cut corporate taxes and simplify the system, if you invest in infrastructure properly and you have fair and free trade,” the nation will easily experience 3 percent to 4 precent economic growth, 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.

Nonetheless, billionaire investor Ray Dalio, who has been expressing concerns about President Donald Trump in recent months, said on Monday he was cutting some of his exposure during a time of growing political and economic divisions, Bloomberg reported.

"I'm watching how conflict is being handled as a guide, and I'm not encouraged," Dalio wrote in a LinkedIn post published on Monday.

"I continue to closely watch how conflict is handled while tactically reducing our risk to it not being handled well."

Dalio, who founded the $160 billion hedge fund Bridgewater Associates, was initially confident of Trump's ability to stimulate growth through his plans for tax reform, cutting regulations and an infrastructure plan.

(Newsmax wires services contributed to this report).

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Larry Kudlow praised President Donald Trump’s Monday night speech on U.S. military strategy on Afghanistan, proclaiming it to be a hallmark event of his tenure.
larry kudlow, trump, speech, tax, reform
Tuesday, 22 August 2017 05:10 PM
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