President Trump’s Tax Cuts Benefit America’s Working Wage Earners
President Trump’s tax cuts on businesses will mostly benefit America’s workers and wage earners.
Economist Larry Kudlow made the remarks while debating the effects of tax reform with Gene Sperling, the economist who worked for the Clinton and Hussein Obama Administrations, on TV Wednesday.
Mr. Kudlow forecast that a boost in economic output will help to pay for the tax cuts as businesses ramp up spending and investing in the US
“We can get 3%+ growth, and I think business tax cuts are going to benefit working folks and wage earners most add to productivity,” Mr. Kudlow said. “We will get the best investment boom in 20 years-plus.”
Mr. Sperling argued that the tax cut will mostly help big corporations that will not share the windfall with workers and will negatively affect the economy as interest rates rise and damp investment.
Mr. Kudlow said former President Barack Hussein Obama had record-setting deficits, but with a different policy prescription for reviving the economy from the worst recession in 80 years.
He said President Trump’s budget includes proposals to cut spending, although it remains to be seen whether Congress will be willing to pare back social programs.
“Budgets are statements of policy. You may not … get the policies Trump is going after: entitlements, Medicaid, Medicare, small entitlements, work-type issues,” he said. “He is on the right track in terms of policy discussion. In terms of debt, Obama took it as a share of GDP from 52% to 77%.”
Messrs Kudlow and Sperling also discussed a proposed $20-B boost in infrastructure spending.
Mr. Sperling said. “It is going to lead to very little that puts people to work, increases productivity of the country.”
“I will defend Trump’s infrastructure plans. He doesn’t want it to be a public works program,” Mr. Kudlow said. “He is reforming infrastructure with respect to the time of applications and probably local labor laws; $200-B is not a big number over 10 years … the rest is going to the private sector.”