Thursday night’s second and final presidential debate will drive home President Trump’s advantage over Joe Biden on the economy, National Economic Council Director Larry Kudlow told FOX Business Network's “The Evening Edit” Thursday.
“The president's going to have a commanding presence. And I think he's going to lay out the case that Mr. Biden's tax hikes will decimate the economy,” Kudlow said. “And I think he'll make the case for his own tax and regulatory reductions, which gave us a strong prosperity cycle.”
Kudlow pointed out that middle-class families had gained an average of $6,500 before the coronavirus pandemic, gains he warned would be “wiped out” if Trump’s tax cuts are rolled back by a Democratic administration.
According to a report from the Hoover Institution at Stanford University, Biden’s tax policies would cost the U.S. economy 5 million jobs and $2.6 trillion of GDP, nearly 10% of the economy. Kudlow predicted Trump would most likely focus on these losses at the debate.
“I think it's a very powerful case of recovery and prosperity and optimism,” he said. “A clear distinction between Mr. Biden's case which is really stagnation, decline and pessimism. It just couldn't be a clearer contrast.”
Biden’s plan will implement 60% tax hikes on the top bracket of American earners and also threatens to tax 401(k)s. Under these policies, one-quarter of small business income and corporate investment will be lost, which Kudlow said the president will “absolutely” address and challenge.
“The president will be in command of the facts and figures,” he said. “Much of what Mr. Biden and his supporters argue are basically fact-free, OK? They're just not true. President Trump will straighten all this out in the debate and will make the contrast ... It couldn't be clearer.”