Kudlow slams Biden’s comment that big companies don’t pay taxes, calls statement ‘absolute nonsense’
Just a few hours ago, President Joe Biden Gave their class battle pitch to level the playing field, which, as they say, punishes success, although they deny it, and falsely allege that wealthy people and big companies pay no taxes. There are—all of whom are far-right progressive, awakened, democratic paps—not an ounce of truth in any of this.
Just hours before I sat through all of this, the Commerce Department retail sales release was a shock. Rather than a big one down Wall Street, the numbers were big — even brushing off the mess for low car sales.
The number was bigger than anyone could have dreamed of, and the main retail sales number that feeds into GDP was bigger than all of them.
In recent times, we’ve had a major release for industrial production, manufacturing and commercial equipment spend. Regional Fed manufacturing surveys are strong. ism supply managers are strong.
Biden’s $3.5 million bill won’t spy on the bank accounts of the rich
Demand for 11 million unfinished jobs for workers is strong off the charts and broader inflation measures may have simmered but are still running at a very high 4%.
Now with all that, with a straight face, President Biden tells the nation this afternoon that we need a $6 trillion federal spending package. Really?
Do you think anyone in their right mind believes so? Is there any common sense in this story?
Playing the Class Warfare card won’t work. The polls clearly show that the nation favors free enterprise capitalism, not big government socialism.
Do you think there’s a basis for support for choosing small businesses and punishing them with the worst tax hike in the Ways and Means package?
Do you think working people want America to have the highest corporate tax among developed countries? We will be No 1 except Colombia and Portugal. China will be much less.
Is that what we want? China? With capital gains tax which will effectively exceed 40%. Again, much more than in China.
Is this what the common people want? Or, how about it? We have made record profits in recent years and have recorded corporate tax payments on the following record profits trump 2017 Tax Deductions
What Mr Biden is telling people today that big companies don’t pay taxes is utter nonsense, cognitive dissonance. People know this is not true. Government statistics show that this is not true.
Now, here’s an important point on profits: Biden and the Left may hate profits, but profits are the mother’s milk and the lifeblood of the economy.
If businesses big and small aren’t making money, they can’t expand. In fact, they will have to lay off workers and of course cut wages.
Our friend Dan Clifton estimates the Ways & Means bill could cut S&P 500 profits by a hundred billion dollars — about half of the expected profit margins next year. This means there is no wage increase for the blue-collar middle-class workforce.
That means no investment in new business tools and technology to make the workforce more productive and it means going back to the days of zero stagnation for family income that preceded the Obama-Biden period of Trump’s tax cuts. Identity was.
DEM scheme may raise combined rates by over 60% for taxpayers
That’s right, tax companies and you will go into pay stagnation and you will slow down the whole economy. The Biden plan would throw a wet blanket into the recovery from a very healthy pandemic.
You know, if it ain’t broke, don’t fix it. Smart policy would make Trump tax cuts permanent because they work so well for record low unemployment, including for women and minorities, and record-high real wages and record declines in poverty and income inequality.
Mr Biden wants to level the playing field. This tells me that he doesn’t want to make us all more prosperous. I don’t like leveling. I like to grow. I like opportunity. I love rewarding success. For all these reasons, I firmly believe that we must save America by abolishing the bill.
There’s More to Say—But I Want to Meet the Leader of the Republican House Kevin McCarthy.
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Just let me finally note that all these good left-wing intentions to increase subsidies for childcare, dependent care, nutrition, child tax credits, free community colleges, more Obamacare, more Medicaid, more, more, more – none of it. A single workplace requirement – none.
It is a massive government welfare dependency. It cuts to the heart of America’s social fabric that Dems want to turn into big government socialism and, in some areas like health and energy, they literally want to take over the means of production – more madness.
So, I’ll conclude. Save the country Hit the bill
This article is adapted from commentary by Larry Kudlow on the September 16, 2021 edition of “Kudlow”.