Even if Democratic presidential candidate Joe Biden wins the election, Americans can expect to see the tax cuts that President Trump presided over three years ago stay in place, according to White House economic adviser Larry Kudlow.
Biden has repeatedly pledged to roll back the 2017 Tax Cuts and Jobs Act, but even if he defeats Trump, he's likely to face a divided Congress. While Democrats appear poised to maintain a slim majority in the House, control of the Senate hinges on Georgia, where the state's close election has pushed at least one, and possibly two races, to a Jan. 5 runoff.
The former vice president is on the brink of victory, leading with 264 Electoral College votes — just one state away from the 270 votes needed to win the White House — compared with Trump's 214.
"I don't think the Trump tax cuts will be overturned no matter what the outcome of the election is," Kudlow told FOX Business' Stuart Varney on Friday. "Of course, if President Trump is reelected, he will cut taxes some more and continue to lower regulation."
Biden promised to raise the corporate tax rate to 28% from 21%, restore the top individual tax rate to 39.6% from 37%, tax capital gains as ordinary income, cap deductions for high earners, expand the Earned Income Tax Credit for workers over the age of 65 and impose the Social Security payroll tax on wages above $400,000.
But Kudlow predicted those changes are unlikely to come to fruition.
"I still think [Trump's] policies are so consequential and tied to this incredible pandemic recovery, much less the first three years where the middle class did so well, I just think folks want those policies to stay in place," he said.
Kudlow also pointed to House Democrats failure to expand their majority during the election, part of what was supposed to be a "blue wave," as evidence that the "party's leftward move toward socialism" -- including tax hikes, regulation and government control of large chunks of the economy -- are not popular among voters.
Republicans flipped back several key seats that Democrats won in the 2018 midterm elections, unseating incumbent freshmen lawmakers in Florida, Newe Mexico and South Carolina.
"I would throw those plans away," he said. "I think they go into the trash bucket."