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Larry Kudlow, CNBC, discuss the Obama Budget proposal

Feb 21, 2014|

Larry Kudlow, CNBC, discuss the Obama Budget proposal by financialexchange

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Right now we are joined by Larry Kudlow Larry as you know is the host of the Kabul reported airs every weeknight at 7 o'clock on CNBC. And you know I've I've. Read in the Wall Street Journal today Kim I read the budget proposal coming out of the Obama administration. And I've been kind of talked to Larry about it because I know he's taken a look at it. Larry Kudlow from CNBC good morning how are. Good point Barry all right a lot of raised taxes that you don't like that fits him. What's wrong with big pick here. And I just I don't understand ages -- it seems like he's going the he's he's gonna force a lot of large corporations to leave the country. He. But attacked them I don't know all the people out but yes basically -- there aren't profit he wants to. Somehow penalized that. Are switching accounts from that aspect of bar and I and -- -- more I don't know -- But they called digital digital movement of money when but it -- so that computer so that's what they do. I have no idea what else are above has always opposed. Companies from keeping profits overseas for whatever reason that I read it but because actually. I'd also be reason that they're over these jobs. You don't need cash they do business -- -- marketing and sales. That cases factories. You know they found that product from 25 or thirty different countries. I expect protection -- very raw and I just adds. Can we please just abolish the corporate tax out of the -- reform I wanna abolish it there's a study out. It shows that it would actually benefit wagers consumers. And it was certainly. Media. The simpler less complex to abolish. To be good for job creation that's for sure right you have all -- games being played and and and let taxes be paid on the personal levels posted by corporations. That is the key point -- held let taxes he paid a personal level. And therefore you avoid the double taxation. Okay. And you also you know the investors will be the taxpayers for the company's profit to let stand now companies don't pay taxes they collect them. He added that from the IRS. But they take it out -- way to. And they -- -- It's the most inefficient -- -- the -- the -- was started. You know weight factor in the original progressive era. FDR. Just Pol Pot during the new deal where -- blame corporations for. I actually for the depression and everything else that's wrong in the world -- it's a crazy system and it was just get rid of it and -- cut the cost. About university who has not. A -- carried supplies after it argued that study -- bottled that he did. That you'd be you'd make more -- expanding economy and help workers. Not just -- -- but increased wages by up polishing the corporate tax. Imagine how much money comes back to the United States would be in the trillions of dollars came back to the United States as a result. But ninety's. There was about it I don't know what it was five. Five and a quarter percent tax. Repatriated but -- worked really well they've -- 4500 billion dollars can now when it on. You do stuff like that right away before he completed tax reform he'd do that right away. -- -- wait Apple's -- I looked -- Tax Foundation. As that is just did a study we have the worst corporate -- that always TP developed countries we also have the worst. Capital gains. Died in -- almost cap is terrible it's orally and investment. Exit on us in hospitable to -- that. He wanted to grow this which you -- -- Is so we have to look forward to for the next three years because the you know they're gonna lose seats in the -- they're gonna lose seats in the house and a lot in the senate. Think I I just don't know that you see much of anything getting done until. I guess seventeen. You couldn't write you could be right arc -- -- GOP's that it was certainly put a lot of pressure. On the president for. Things like -- -- war for Serb held here. I mean I think -- -- suspend. All of Obama care for three years of oratory. That that's basically. Direction the president who is expanding it deadlines for every. So it definitely opening a moratorium. He's hunting he's -- he says the heat is -- a deal this problem till the next congress steals and a. Very LII would I would describe craft a law moratorium for three years. Appoint -- commission. And let's come back and look at an in place that that's what I would do you really what I would do so about the whole thing. It's certainly putting a damper on top. Now I saw something in the budget proposal that would limit the amount of money that you can deduct in an IRA if you happen to make a lot of money. You know and further -- you know didn't distance and in any kind of retirement savings in. And floating around that I didn't eat at this point I can best I have not read. Everything it let me just -- it this whole budget -- -- Going -- so. That it doesn't matter but you know you I know they've been trying to cut back on irate deduction I -- that. I didn't realize that they get the -- Scoop but they're not gonna wanna spend I was just read the journal that they want it spent 56 billion dollars. In new discretionary spent. They just made a deal. They just made a deal. That lifted the sequestration budget gaps. By about 35 billion -- The next couple years right you're not getting yet another 56 whatever billion. Yeah it made that they are right but Gary is coming back -- -- this team and he wants to what break bad deal that's crazy. That make utmost respect and it makes no political event but most. That is sent annually spending is coming down the deficits -- that it probably the only really good. Part of the overall macro story he would be. What debt -- what do you make of the economic data they're ready saying it's weather related. -- the housing starts number building permit number that we got earlier this week and -- mistake and you can look up the existing home sales acumen and I didn't see that. But that is is all the stuff that we're seeing all the negative data is it is an all weather related there. Well I hope so I'm not sure I don't answer the honest with. Do we know yet. Colonel EST if it's not weather related that means are slowing down pretty badly. -- It is. Most of the economists that I read ought to tickets weather related. But there is -- but and there. Got a bit may not be weather related words you had a big inventory people. And like Q3. Spilling over a bit into Q4. So. You might side BQ Juan. That inventories. Boat comes down. Maybe you're seeing slower rate. In other areas I'm not sure I mean retail sales were pretty lousy again I don't know whether or maybe. Is -- -- that is the best I can tea honestly. You're -- to a half percent true that sport as yours this slow recoveries 2.4 percent annual rate. Is that Trent Lott really change. I -- we popped up in the. Only 4% in Q4. That's right our -- three Q3 and that it misrepresenting Q4 disappearing it's going to be about two and a half. Because of trade. And the two. So I just banking on it -- would have percent. Growth rate this year. There's too much taxes. -- tax excellent place. On you about is a lot of uncertainty about Bob Clearwire is higher. I -- just don't see a break -- And I think the absolute key thing for investors. It is profit. That -- profits and more importantly GDP profits in the August but. I'd be much more interest. In profits would look good fourth quarter of what that has been two years. And or even revenue strong you know right even exceeded on revenue. Right stronger so that all that's good that's what I you know as an investor I'd worry more about debt to GDP. And out. I'm encouraged by that I think there's probably some. So wrote for the stock market to rise that I'd. Like question -- is in the stock market or the other had. There's a lot of confusion about the up by a ball back on the reality is that we don't have that got a paper we you know that get out acutely tree. And that's good check that that. But the question of raising the -- but target rate started Bennett. A couple days ago and spirited discussions. I'd bet a policy of the hawks that there is discussion. And Taylor royal county jail Israel's straight out of the one and a quarter percent Europe and at that -- recovery. Don't like heroes. Like to blow this year but I -- have we got into depression that you birds is over. Like that is going to be the uncertainty about the bad. Short term rates -- it but let's say you believe. That they won't raise the short term rates. To go out. Sixteen. I would admit that you can. Stock market. Right. Probably the third fourth quarter this year. Using six months in advance the science. In that -- Do you want to Nigerian -- for the Olympics. More -- a restart Monday Monday night. But we'll have a good weekend. Barrett I think Larry Kudlow CNBC can't watch -- tonight that you can watch him on Monday.