Tags: Trump Administration | Trump Tax Reform | larry kudlow | marco rubio | trump | tax

Kudlow: Rubio 'Confused' Over Trump Tax Policy

By    |   Monday, 01 January 2018 06:48 PM

Veteran economic guru Larry Kudlow is baffled over why Senator Marco Rubio, who voted for President Donald Trump’s tax bill, now claims he thinks that maybe companies got too good a tax break.

“I thought we probably went too far on [helping] corporations,” Rubio told The News-Press, a newspaper based in Fort Myers, Florida, in an interview published Thursday.

“If I were king for a day, this tax bill would have looked different,” said Rubio, who explained that much of the corporate tax break would likely go to shareholders instead of efforts to add jobs or increase wages.

“By and large, you’re going to see a lot of these multinationals buy back shares to drive up the price,” Rubio said. “That isn’t going to create dramatic economic growth,” the newspaper quoted him as saying.

The Florida senator had written an amendment to the tax bill that would have raised corporate taxes 1 percent above the 20 percent included in the bill, to pay for a child care tax credit. But he still supported the Republican legislation after his amendment failed and money for the credit was found elsewhere, The News-Press reported.

Rubio told the paper that the child care credit was an important issue to him and that on the whole, the tax code improved as a result of the bill.

To be sure, Kudlow was mystified by Rubio’s criticism.

“I don't understand them. They're silly,” the former Ronald Reagan adviser recently told CNBC.

“They contradict what we hid two weeks ago. Maybe he sees some political benefit, although I don't get that, either," said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.

"The corporate tax cut for large and small businesses, plus the expensing, plus the repatriation, is going to deliver an investment boom President Trump talked about that in The New York Times interview,”  said Kudlow, who served as the Trump campaign's senior economic adviser.

“I think the president is right. I think Rubio is wrong. I think Senator Rubio sometimes gets very confused about tax policy. He's not a king, by the way, and he's not even president. I don't think he's going to be president,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

Kudlow claims the Trump tax cuts will result in the economy flourishing beyond expectations.

“I think that GOP is going to surprise all the experts and do very well in the midterm elections in 2018,” 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 proof of the pudding will be in the eating," he said. claiming the tax cuts have  "already started an investment boom. The investment boom is not only a job creator, it's a wage increaser."

“Many studies have shown that lower corporate tax rates benefit wage earners and middle class folks by as much as 60% to 70% it doesn't get any more middle class than that," he said.

The bill is expected to add roughly $1 trillion to the deficit over 10 years, with the corporate tax cut costing the government about $1.5 trillion in revenue, Newsweek has reported. That reduced revenue comes from cutting the tax rate from 35 percent to 20 percent, although Republicans have argued that the cuts would sufficiently boost the economy to eventually pay for themselves.

No independent scorekeeper has backed up those claims, Newsweek reported.

“These are ordinary wage earners and everybody is going to have more business, better business, better profits," Kudlow said.

(Newsmax wire services contributed to this report).

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Veteran economic guru Larry Kudlow is baffled over why Senator Marco Rubio, who voted for President Donald Trump’s tax bill, now claims he thinks that maybe companies got too good a tax break.
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Monday, 01 January 2018 06:48 PM
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