Larry Kudlow: This is a lesson the left has never learned

Kudlow calls out Biden's budget proposal for hiking taxes

Somebody needs to tell President Joe Biden and his budget advisors that no country, anywhere in the world, throughout history, has taxed their way into prosperity. You can't do it. It's a recipe for stagnation. Actually, it's a recipe for stagflation when you combine high taxes with deficit spending and big money creation. 

This is a left-wing, woke budget to be sure and it's a budget that emphasizes redistribution of wealth and income without a care in the world about growth and prosperity. It's kind of right out of the socialist playbook.  

Everyone should be equal. Not just equal opportunity at the starting line, but equal outcomes at the finish line. In fact, as reported by the Free Beacon, Biden's budget mentions "equity" and its derivatives more than 100 times. 


U.S. President Joe Biden speaks about America's response to Covid-19 in the Eisenhower Executive Office Building in Washington, D.C. on Wednesday, March 30, 2022.  (Photographer: Ting Shen/Bloomberg via Getty Images / Getty Images)

I wonder if they used the word "prosperity" in this budget, bet you not... and you can be sure it wasn't used 100 times. Unfortunately, life is not like that. We're not all the same height or weight or even I-Q. That's just the way the Lord made us. 

Some people run faster. Some people have higher grades. Somebody's going to win the final four this weekend. We can't all be equal. It's a lesson the left has never learned. 

One person who said it very eloquently a long time ago when I was a young man and that was President Jimmy Carter.  

In what might have been his finest sentence, and I quote July 13, 1977, "Well, as you know, there are many things in life that are not fair, that wealthy people can afford and poor people can’t, but I don't believe that the federal government should take action to try to make these opportunities exactly equal, particularly when there is a moral factor involved." 

Honestly, I think it was the best line of his presidency. As a kid playing tennis tournaments, I always wanted to win Wimbledon. In fact, I still do, but unfortunately there were tens of thousands of people who played tennis better than I ever could, but I digress. 

So, back to Biden's budget. There are no fewer than 36 tax hikes totaling $2.5 trillion in his budget36 tax hikes! And you know what? Every one of them is about punishing success all in the name of paying their "fair share" and leveling the playing field and equity. 


Corporate tax hikes, individual tax hikes, small business hikes, wealth and unrealized capital gains, foreign earnings, extra profits taxes, penalties for depreciation. 

Everything to punish investors, business, entrepreneurs, wage earners, industries across the board. Literally if something moves—tax it. 

One tax they don't mention, is the inflation tax. A new study from Bloomberg estimates that with a 6.4% headline PCE inflation this year, the average U.S. household will have to spend an extra $5,200 or $433 bucks per month compared to last year for the same consumption basket. All these tax hikes and deficit spending will only make the inflation tax worse, burdening working folks, but here's what may be my favorite part of the Biden tax attack.  

Question: What does the Biden White House hate the most in life? 

Answer: Fossil fuels—and they sure go after them, with 11 separate tax hikes on fossil fuels. Repeal expensing, any form of oil recovery, repeal tax credits, passive loss limitations, depletion allowances, amortization of real estate, exploration and development, royalties, oil spill liabilities, etc. 

So, out of 36 tax hikes, 11 of them affect fossil fuel industry. Kind of unequal treatment compared to other industries, wouldn't you say? And don't forget, the other taxes on corporations and small businesses and capital gains and the rest will also affect the fossil fuel industry. In fact, if you look down the whole list of 36 tax hikes, I would say virtually the entire tax hike policy is aimed at fossil fuels. 

Now I wouldn't really call that fairness, would you? Why aren't we signaling out big tech, social media, electric cars, steel, Walt Disney and all woke companies? I don't like woke companies, and I don't like left-wing social policy, but I’m not going to use the tax code to express my personal feelings. 


Biden business roundtable

President Joe Biden speaks at Business Roundtable's CEO Quarterly Meeting, Monday, March 21, 2022, in Washington.  (AP Photo/Patrick Semansky / AP Newsroom)

Forget about some NATO LNG task force rescue mission; the Biden White House hadn't changed its attitude towards fossil fuels one bit. All in the name of "equity." 

Remember Art Laffer: Tax something more you get less of it. Somebody should email that to the White House. Save America, kill the bill. Pray the cavalry comes soon. 

This article is adapted from Larry Kudlow's opening commentary on the March 30, 2022, edition of "Kudlow."