President Biden Tweets That His ‘Build Back Better Agenda Costs Zero Dollars’
Granthshala Business’s Larry Kudlow said President Biden’s $3.5 trillion spending bill is a “bone crusher” and could be “a wet blanket on the entire economy.”
“Save America, kill Bill, kill everyone,” Kudlow told “Warney & Company.” Host Stuart Varney.
Kudlow’s remarks came from Biden’s argument that his social spending bill is an “investment in working America” and will cost nothing.
“My Build Back Better Agenda costs zero dollars,” Biden’s account tweeted on Saturday. “Instead of wasting money on tax breaks, loopholes and tax evasion for big corporations and the wealthy, we can invest in a working America once in a generation. And it adds zero dollars to the national debt.”
Kudlow shares his thoughts on Biden’s spending plan
Kudlow argued that while Biden’s comments are a “tough thing to prove” and “you could even call it a lie,” he said the House budget committee flagged a $4.3 trillion reconciliation bill and the Joint Tax Committee said That tax provisions would only raise $2 trillion in revenue.
“It’s going to cost a lot,” Kudlow said.
When Varney asked whether a tax increase to fund the bill would push the US economy into recession or stagnation, Kudlow responded, saying it could be “a wet blanket on the entire economy.”
Kudlow pointed to the Tax Foundation and the Penn Wharton budget model, which found that GDP would drop slightly and wages would drop as a result of spending and tax hikes.
“Nothing good comes out of it. It’s just a pity. It’s almost a tragedy,” he said. “You’ve got incentives not to work and you’ve got tax penalties on companies that create jobs and higher wages.”
He said spending and deficits also put pressure on the Federal Reserve to monetise debt.
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Granthshala Business’ Courtney O’Brien contributed to this report.