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“We must, we must not go back to high taxes and high regulations, we must not do that,” he argued. “It defies common sense after this pandemic contraction.”
The former vice president has proposed $4 trillion in tax increases to pay for his economic proposals by reversing Trump’s tax cuts for high-income earners and increasing corporate levies.
Kudlow calls that move foolish.
“He's going to raise taxes on big business to small business and individuals and investments, cap gains and dividends,” he said. “It just defies common sense.”
The Director of the National Economic Council says he’s not surprised by Biden’s position since he is being advised by liberal Democrats such as Sens. Bernie Sanders, I-Vt., Elizabeth Warren, D-Mass., and Rep. Alexandria Ocasio-Cortez, D-N.Y.
“I respect them, and they have a right to do what they’re doing,” he explained. “But Mr. Biden’s going to be raising taxes across the board and then some. He said yesterday or the day before he wants to end something called ‘shareholder capitalism.’ We used to call that the investor class and if you buy for the long run you make a fortune for retirement. He’s opposed to that.”
So what are the president’s economic plans going into the election?
“We’re planning on all of that right now,” he pointed out. “He's already said he won't sign a bill with Congress unless it has a payroll tax holiday in it. So that's a starter little appetizer leading into the campaign. There may be capital gains relief. There may be capital gains holidays. We will provide assistance probably for those at the lowest rungs of the ladder. You know, our policies helped low wage earners more than the highest wage earners. We will continue to revisit that. You're going to see much more deregulation.”
And what if the recent rise in COVID-19 cases gets even worse?
"The president will not re-shutter the economy. He will not," Kudlow stated emphatically. "And hopefully the governors won't either. I think we learned our lesson. You don't want the cure to be worse than the disease."