Joe Biden's plans to repeal President Donald Trump's $2 trillion tax cuts and hike corporate tax rates if he's elected will damage U.S. wealth and investment, and while the United States is still struggling with the coronavirus pandemic, it "makes no common sense" to "go on a tax-hiking orgy," White House economic adviser Larry Kudlow said Wednesday.
"What we know is there's going to be a lot of tax increases" if Biden wins, Kudlow told Fox News' "Fox and Friends." "President Trump's entire 2017 tax cut which is for individuals, which is for businesses, large and small, families, child credits and things of that sort, increasing the bottom end tax relief and even giving tax refunds, all that looks like it's going to be repealed."
But coming out of the pandemic, even while a "very strong second half" is being predicted this year, Kudlow asked what businesses in 2021 and 2022 would do under a Biden presidency.
"Stop investing?" he said."I think it's a huge danger to the stock market but perhaps more important for all of America for the blue-collar workers who have done so well at least up to the pandemic."
He also called Biden's plans an "absolute job killer" and a recessionary policy that will damage U.S. investments and wealth.
Kudlow's comments came in response to an article in The New York Times, which reported Tuesday that investors are starting to ask what will happen if Biden is elected.
Jonathan Golub, the chief U.S. equity strategist at Credit Suisse, told the newspaper that in recent weeks, investors' inquiries about Biden's lead in the polls have been almost all focused on the issue of taxes, making it "kind of the market's focus."
Biden on June 29 told potential donors at virtual fund-raiser, attended by several Wall Street investors, that he plans to roll back most of Trump's tax cuts and "a lot of you may not like that."
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