So, Senator Joe Manchin may not break my heart after all. The things bandied about in this reconciliation package are so bad in every way that it is just unimaginable to me that my favorite democratic senator will go along with it.
In round numbers, there's a trillion dollars in spending and a trillion dollars in tax hikes. The spending will add to inflation and the tax hikes will deepen the recession.
I understand that Joe Biden never passed Econ 101, nor did his key intern or for that matter his press secretary and will never understand why this "Build Back Smaller" is a terrible idea, but I have a lot more confidence in Manchin and for that matter, Senator Sinema.
While it's true we don't know specifics, there's a lot of new sociall spending in this Chuck Schumer special, new subsidies for Obamacare, yet another expansion of Medicaid and let's not forget allowing Medicare to set drug prices (a.k.a. price controls) which will do great damage to America's innovative pharmaceutical and biotech sectors. They are the best in the world. Price controls will make them third best in the world.
Have we forgotten Trump's Operation Warped Speed when American pharmas delivered a vaccine in the supersonic speed of time? The democrats have forgotten or, more likely, never acknowledged it in the first place and then, there's a trillion-dollar tax hike that could land on corporations and the wealthy. Bet the Dems will try to stick in an excess profits tax in there too.
Senator Mitch McConnell is right to say "no" to the reconciliation bill coupling that with a pledge to say "no" to the so-called "China Competes Bill," which, I also think is a bad idea.
Any legislation getting through the Senate has to go to the House and the left-wing Democrats in the House will double or triple social spending and taxes and the good news there is that the woke, progressive house version will never pass Manchin or Sinema or the Senate. Just saying.
So, tonight's mantra is a golden oldie. Save America. Kill the bill.
This article is adapted from Larry Kudlow's opening commentary on the July 7, 2022, edition of "Kudlow."