Larry Kudlow was on today’s episode of The Cats Roundtable.
The Houston Chronicle has once again given space to Ed Hirs, who incorrectly attacked supply-side economics back in May, which we shared here. Today Hirs is using supply-side economics to attack the tax reform bills that will now be going to conference committee. Fair enough, but let’s not lie and make up our own facts along the way, Mr. Hirs. You will find today’s editorial by Hirs here.
Reagan, originally a New Deal Democrat, knew the benefit of Keynesian tax cuts but expediently called it supply-side economics.
Ronald Reagan attended Eureka College before the New Deal was a thing and before Keynesian economics was a thing. He had been educated in real economics, not the type of economics that would take over in left-leaning academia for the decades to follow.
If we are to take a cue from Broadway, it should be from Horace Vandergelder in “Hello Dolly,” who famously said, “Money is like manure; it’s not worth a thing unless it’s spread around encouraging young things to grow.”
Absent that spread around, trickle down, the economics of tax cuts for the rich simply do not add up.
There you go again, Ed. Anyway, feel free to enjoy the comments section where the editorial is posted.
Yesterday on NPR’s Marketplace, Leftist host Kai Ryssdal tried his best to interview (more like trap and trick) House Ways and Means Chairman Kevin Brady. The interview is not too long, and a transcript can be found here if you prefer to read it.
De-funding government-funded radio like NPR should also be a part of the the tax reform bill, maybe we can get that next time.
On Thursday, the Joint Committee on Taxation confirmed that the Senate tax cut bill will boost economic growth and create jobs. Yet Republicans started freaking out that the bill might produce a slight increase in deficits over the next decade.
Every independent analysis of the Senate bill now confirms that it is a pro-growth bill. The only question now is how much growth will it produce. The JCT report says that the Senate plan will increase GDP by an average 0.8% over the next decade, and increase the number of jobs by 0.6%. Those might seem like small numbers, but they represent more than $100 billion in additional economic output and a million new jobs.
Given the incredibly sluggish pace of economic growth since the recession ended, you’d think boosting annual growth would be the paramount concern.
Peter Ferrara at The Daily Caller:
The tax reform bill now pending in Congress will be very pro-growth, like President John F. Kennedy’s tax cuts passed in the early 1960s, and the tax cuts and reform that President Ronald Reagan led in the 1980s. All of America will benefit from that soaring growth, and the long overdue end of long-term stagnation, where America has been stuck for a decade now.
Presidents Kennedy and Reagan fundamentally fixed the individual, worker side of the tax code, as Lawrence Kudlow and Brian Domitrovic explain in their recent book, “President Reagan and the Reagan Revolution: The Untold Story of American Prosperity.” When Kennedy entered office, the top income tax rate was 91 percent. He reduced that to 70 percent, and then reduced all the other tax rates by an equivalent percentage — roughly 23 percent — as well.
But that did not result in a 23 percent reduction in income tax revenues, which would have been the static estimate not considering resulting economic growth effects. Instead, revenues rose as the economy boomed for the rest of the 1960s, until Nixon’s tax increases and monetary policy chaos (cutting the dollar’s tie to gold) cut the boom short.
It is not totally clear when this interview was recorded, but John Batchelor was able to talk extensively with Larry Kudlow and Brian Domitrovic about their book, JFK and the Reagan Revolution. Their book was released in the fall of 2016, and so if this interview was recorded a year ago at around this time, that would make sense. Anyway, it is a very good, extensive discussion.
Earlier today Larry Kudlow was a guest on The CATS Rountable radio show with host John Catsimatidis.