Apr 21, 2017|
Larry Kudlow (CNBC, Tax Reform) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
According to sources freedom caucus chairman mark meadows has been even discussion. And successfully negotiating with senator Susan Collins in moderate Republican from Maine. And they have been agreeing on a number of issues regarding their health care. That was the voice of Larry Kudlow or at least it was the statement out of Larry cutlass about during the closing bell yesterday on CNBC he joins us. Now on the financial exchange hey Larry how aria. I'm good dietary you. I happen to catch that segment and I was quite surprised to hear those words come out of your mouth. Well. As I said its second hand I wasn't there. But it was reported to me that that congress and meadows senator. Cause we're in discussions she's moderate and conservative views. And they were. Passing through a number of issues. I guess mostly around the so called essential benefit that mandate I think the community ratings. I think the pavement for. You pick and help people who have conditions and right now and also Medicaid. That they were negotiating. And moving along quite nicely now I can't confirm that that said because I wasn't there. But it was reported a bit by bit source and you know if that's true. That means. If they had contested. Health Care Reform bill would like sixty vote and it gets so into the edit it won't take forever to get through this resist that it is moving ahead as. Ahead of schedule ahead of the outpost that they can you know tried to negotiate. I ahead of the scored so. I hope springs eternal I just wanna get it done we can move by the tax reform but I also wanna get it done we can improve America's health that. People are affordable and by the way repeal all I don't know eight or 900 billion dollars worth of obamacare actually. I love the idea but I'm wondering what about the tax credits because I thought mark meadows will is very opposed to. Giving out tax credits for people buying health insurance. Well I think at that point it's more of incumbent just more of mis steps. I think. The view it there's too much money that's gone to the top end and that should be shifted down to the Lawrence. And that you know for budget savings purposes but also. In my view as people make it a couple of 100000 dollars a year for example. In all likelihood probably work for businesses that already provide the health insurance and if not. This small group left would be able to purchase their own. So I again I I can't specify everything goes I wasn't privy to the conversation on I'd try to get eight. Freedom caucus member to come on the idea my radio show. Tomorrow Saturday the two perhaps square. Good good lobby tuned in to tonight's businesses to listen in. A guy they also wanted to talk to you about Steve minutia and I caught his interview yesterday. And he's saying hey we're gonna get corporate tax for fun reform done prior to the end of the year. But we're gonna put off personal tax reform until 2018 what are your thoughts. I didn't say that I didn't know that that's they used in today's journal. Ready you know to eat sand. We want a good group bought. Art Laffer and Steve Moore and I and Steve Forbes wrote. An op Ed in the New York Times. I call you for that. That get the corporate step done first it'll be simpler. Easier. Really pro growth is still no business investment on and say the individual. Simplification and reform for next year and I got by the fact that it is new news to. Didn't Wall Street Europe and now it Peter Nicholas K Davidson and attempt roast and today they're in last night's journal. Whether all good reporters. That's good news that's exactly. What our group the committee to unleash prosperity. One and out. I think in addition. Gary Cohn. Is that. Tax reform will be scored. Dynamic needs with growth impact and new border just that way out exactly that but there is that correct. And all that this in my like you need to make this revenue neutral as I've said many times if you take BP on number which one point 8% growth. The next ten years and you apply the tax cut they're talking about a bit. You're gonna produce I think at least 3% growth protect years and you. And that will get to post 4000000000004. Trillion dollars that extra revenues. And I caught the bug their fault they report. Growth everything and just can't tell me that if you already at straight. We knew it Bannister businesses large and small. Their docket is that you brought out if you could go but it two and a half percent growth year I think 3% would get it back to a normal. That's the key this whole you know blockages. That's Wednesday at revenues with respect to reconciliation. Just plug it up faster growth rate. Lily give me the bad news Larry. 90% of our audience voted for Donald Trump you're conservative network of stations they love Donald Trump they voted for him. We asked the poll question should congress pass personal tax reform. Before corporate tax reform. 76%. Of our listeners want them to past personal tax reform prior to corporate tax reform. What say you. Well he got it up. Black a lot poet question. It all depends on what your ass. Now if you re afraid that my that you said that. 80%. Individuals. Who wrote in their own businesses don't run or operate your own business. Would get relief from the corporate tax reform which you prefer that to become personal mission yet would be yet. Howard they're seeing it as like GD. You know person the average middle class person yeah when the reality is. The corporate tax reduction for large and small companies seek court escorts partnerships whatever. Affect. Middle income wager there the biggest beneficiaries. Well I accurate that people clear out. Okay season it's a myth and easy to miss interpretation but beat the L tell you what Larry politically. They'd better do personal tax reform because that get crushed in the election next year they don't. I don't know I am not so sure really. Sure because. As I think most Americans are employed. Either by a large firm or by themselves all Americans frankly self employed. If they realize that they would get a tax break a large tax rate. 50% tax cuts but they've forty to twenty on the tax I think it like that very much. Goal I don't know it's a tricky business. All I'm saying is you. Personal action force will be much stock for the corporate so. Go for a company yet and it covers the vast majority of the working population. I think people would understand. Legitimate point and then the marketing year has to be. Very very expensive that the people understand. What we're talking. All right Larry thank you very much for your time so much. Larry Kudlow senior contributor to CNBC. Explaining. Why he feels corporate tax reform should be done prior to personal tax reform. I gotta tell you I love Larry I'm not buying but I just I I I talked to my friends I I. I I've I've got friends that don't car dealerships and got friends who are doctors and friends were lawyers. And they tell me in these are guys that the only guy owns his own car dealership number of he wants personal tax reform done. I mean the big thing when you look at it in your part of the reason why you're not concede personal before corporate. Is when you look at where most of the revenues for the federal government come from Parcells. Now. Corporate taxes make up depending on the specific year anywhere between ten and 20% of all government receipts in personal taxes make up between sixty and 80%.