LARRY KUDLOW: I don’t believe the Trump tax hike rumors

Yesterday was the day of taxes, which would have become a suitable time for the White House to put all rumors to raise Republican taxes. Instead, we got an article Bloomberg entitled: “The height of the millionaire acquires the height of Steam’s taxes with Trump’s openness signs.” Now openness does not mean that the president will sign it. Knowing it, it is open to discuss many things he rejects in the end. For this reason I think this is something that will eventually reject. The promises made, and the reserved promises. I don’t think Mr. Trump will sign a tax height.

The promise was made to extend the 2017 tax cuts, which include maintaining the highest 37 % of the chip, 37 discounts in the points line for low bows, double standard discount, double -credit credit, low tax rate for foreign -nominal income, 21 % corporate tax rate, 100 % of the validity of machinery and machinery. Bloomberg’s article suggests the need for high tax rates as a wage against. But this is not logical because Mr. Trump and Republican leaders in the House of Representatives and the Senate have all agreed to the current political foundation line, which only extends to the 2017 tax reduction – and it will be a neutral deficit. By the way, 44 Republican Senators and about 180 Republican members of the Republican House of Representatives signed a “no tax.”

Therefore, if Mr. Trump pays a tax increase, the beautiful, beautiful reconciliation bill will be destroyed.

As Mr. Trump knows, the highest personal tax rate is paid by small business owners in LLCS or S Corica. Which really includes the largest part of the jobs and income produced in the economy. Small business owners are already anxious about the impact of high definitions, so why do they hit them again with a higher tax bill?

Mr. Trump is the hero of small companies. It was always. He is also well aware of the Laffer curve, as it was presented to Dr. Laffer, the presidential medal for freedom during his first term. The LaFFer curve argues that higher tax rates will generate less revenues through weaker economic activity and avoid larger taxes. Many wealthy people can afford the costs of aviation tax accountants and they will avoid paying more taxes. By the way, the highest 1 % of the taxpayers already pay 45 % of the income tax, or nearly half.

Then the article continues to say that the highest rates of senior potentials can compensate for an expanded and local tax discount. But this only affects the high owners. So, let me get this correctly, Trump will raise the tax on the high heights, but at the same time lower the tax burden by giving the same high papers a greater tax discount? meaningless. The president is a kind of common sense of men.

Unfortunately, some Treasury officials were talking about how to “everything on the table” or many ideas were studied to reduce the total cost of the tax bill. But these officials are better advised to adhere to Trump’s policy, which intends to extend the 2017 very successful tax bill.

Mr. Trump has now added some tax additions: tax -exempt advice for service workers, tax -exempt additional work, and tax reduction to the elderly. It also added 15 % corporate tax “made in America” ​​to stimulate the preoccupation. And immediate expenses for factory investment, retroactively until January 20, 2025, also to stimulate protein. This is outside the current political foundation line. But instead of raising some taxes to finance tax cuts, why do you not benefit from Elon Musk Doge, or any tariff revenues estimated.

Mr. Trump has always believed in equivalent success, not punishing. The child should not be punished in the garage, a small businesswoman on the main street, or a successful investor to become rich.

Mr. Trump is determined to recycle our economy, adding a lot of new dynamics and risks in this process. He said that a million times. Why does he want to be raised to strangle this?

These are all reasons that make me do not think it will go to the tax height.