Taxing wealthy Americans impedes economic growth, raises deficit: Larry Kudlow
President Trump’s chief economic adviser Larry Kudlow told FOX Business’ Lou Dobbs that raising taxes on wealthy Americans will hinder economic growth and raise the U.S. deficit.
“You could start raising tax rates on successful earners [but] you’ll get a slower economy and you’ll get lower revenue,” Kudlow said on Thursday. “The deficit will go up.”
Democratic presidential hopeful Sen. Elizabeth Warren of Massachusetts is calling for a “wealth tax” proposal that slaps a 2 percent tax on Americans with $50 million in assets and a 3 percent tax on billionaires.
"Right now, an heir with $500 million in yachts and fine art and a public school teacher with no savings can pay the same amount in federal taxes," Warren's exploratory committee said in a statement.
A Fox News Poll released Thursday shows 70 percent of voters surveyed favor increased tax rates for families making over $10 million and a 65 percent hike on those making over $1 million.
“Let’s just tax rich people, that's somehow going to do what, equalize income?,” Kudlow said. “There’s no such thing as income equalizer.”
Kudlow said President Trump’s economic agenda that has slashed taxes on individuals, corporations and small businesses along with rolling burdensome regulations has proven to be successful.
“We are running now 3 percent plus economic growth adjusted for inflation,” he said. “Everybody said it couldn’t be done when we put this together.”
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The Trump administration's economic incentive model has spurred blue-collar job growth at the fastest rate since the Reagan administration, according to the White House Economic Council director.
“You keep more of what you earn, you tax something less you get more entrepreneurship, more jobs, more wealth,” Kudlow said.