2020 EITHER AND THAT’S THE CASE.
>> Trace: PETER, THANK YOU.
>> Sandra: NOW TO THE
PRESIDENT’S ECONOMIC PLAN AT
THE RNC.
HE IS EXPECTED TO FOCUS NOT
ONLY MAKING THE 2017 TAX CUTS
PERMANENT, BUT ALSO SLASHING
PAYROLL TAXES.
IT’S SPARKING A WARNING FROM
THE CHIEF ACTUARY OF SOCIAL
SECURITY STEVEN GOSS SAYING IN
THOSE TAXES ARE ELIMINATED THE
SOCIAL SECURITY TRUST FUND
WOULD BE DEPLETED IN THREE
YEARS.
LARRY KUDLOW THIS MORNING.
WE HAVE A LOT OF QUESTIONS.
FIRST CAN YOU REACT TO THAT?
>> THERE IS NO PLAN TO
ELIMINATE SOCIAL SECURITY TAXES.
I DON’T KNOW WHERE THAT IDEA
CAME FROM.
IT IS NOT TRUE.
PRESIDENT TRUMP IS, HOWEVER,
PROPOSING TO DEFER PAYROLL
TAXES BETWEEN NOW AND YEAR END.
LET’S SAY SEPTEMBER 1st THROUGH
DECEMBER 31st.
THAT WOULD GIVE WAGES -- THAT
WOULD GIVE MIDDLE INCOME
WORKERS ABOUT AN 1100 WEEKLY
WAGE INCREASE, OKAY, OVER THE
PERIOD.
$1100.
THAT WILL BE REPLACED IN TERMS
OF THE SOCIAL SECURITY TRUST
FUND.
WE’LL BOND THAT OUT AND WE WILL
EXCHANGE NOTES WITH THE TRUST
FUND.
THEY ARE CALLED NON-MARKETABLE
SECURITIES.
IT HAPPENS ALL THE TIME.
DEMOCRATS WHO CUT THE PAYROLL
TAX IN THE PAST WENT THROUGH
EXACTLY THE SAME EXERCISE.
HERE IS THE KEY THING.
CUTTING THE PAYROLL TAX WILL
AFFECT OVER 140 MILLION
AMERICANS WHO WERE ABLE TO
CONTINUE TO WORK.
THEY ARE LIKE HEROES DURING
THIS PANDEMIC AND IT WILL
PROVIDE AN INCENTIVE NOT ONLY
FOR THEM TO WORK BUT FOR OTHERS
TO COME BACK TO WORK BECAUSE OF
THIS BIG WAGE INCREASE.
SO I COMPLETELY DISAGREE.
I DON’T KNOW ALL THESE
OUTLANDISH IDEAS AND EXTENSIONS
AND EXTRAPOLATIONS.
IT IS A VERY STRAIGHT FORWARD
PRO GROWTH, PRO JOB, PRO WAGE
INCREASE FOR LITTLE McWORKERS.
>> Sandra: YOU SAY THERE IS NO
PLAN TO CUT PAYROLL TAXES.
>> NO, NONE, ZERO.
THAT IS A DIFFERENT SUBJECT.
THE PRESIDENT HAS SAID A
MILLION TIMES HE WILL PROTECT
-- HE WILL PROTECT THE SOCIAL
SECURITY SYSTEM.
HE SAID THAT A MILLION TIMES.
BUT HE WOULD LIKE A PERMANENT
DEFERRAL.
IN OTHER WORDS, HE WOULD PREFER
AND WILL DO EVERYTHING HE CAN
TO FIND WAYS AND MEANS TO DO
THIS, TO FORGIVE THE DEFERRAL.
SO THEREFORE THOSE EMPLOYEES
AND EMPLOYERS WON’T HAVE TO
WORRY ABOUT ADDED TAX
LIABILITIES IN THE FUTURE.
PRESIDENT WANTS TO GIVE 6 1/4%
PAYROLL TAX CUT FOR HIGHER
WAGES AND WILL DEFER THE
PAYBACK PERMANENTLY.
THAT’S HIS GOAL.
I’LL BET HE WILL GET IT AFTER
THE ELECTION.
>> Sandra: THE PRESIDENT’S
WORDS ON THAT.
WE WILL BE ON THE ASSUMPTION I
WIN.
I’M QUOTING HIM DIRECTLY.
WE’LL BE TERMINATING THE
PAYROLL TAX AFTER THE BEGINNING
OF THE NEW YEAR.
HOW IS THAT DIFFERENT?
>> I’M SORRY, I UNDERSTOOD THAT
TO SIMPLY MEAN THAT WE WILL
PERMANENTLY DEFER THE PAYBACK
OF THAT TAX CUT.
THAT’S ALL THAT MEANT.
HE WASN’T TALKING ABOUT A
GENERALIZED SOCIAL SECURITY TAX
CUT.
HE WANTS TO PROTECT SOCIAL
SECURITY.
I UNDERSTOOD THAT PERFECTLY
WELL AND I THINK MOST PEOPLE
DID, TOO.
HE WANTS PAYROLL TAX DEFERRAL
TO BECOME PERMANENT IN THE
SENSE OF THE PAYBACK WILL BE
FORGIVEN.
LET ME REPEAT.
THE PAYBACK WILL BE FORGIVEN SO
IT’S A COMPLETE, FULL TAX CUT
AND WE NEED THAT.
LOOK, SANDRA, WE’RE COMING OUT
OF A ROUGH PANDEMIC CONTRACTION.
THE ECONOMY IS REBOUNDING
BEAUTIFULLY BUT STILL A LOT OF
HARDSHIP OUT THERE.
WE HAVE MUCH WORK TO DO.
THIS WOULD ABSOLUTELY HELP
MIDDLE INCOME, LOWER MIDDLE
INCOME FOLKS THE MOST.
>> Sandra: OKAY.
AUSTAN GOOLSBEE JUST JOINED US
FROM THE OBAMA ADMINISTRATION
AND NOW A PROFESSOR AT THE
UNIVERSITY OF CHICAGO.
HE IS MAKING THE CASE THAT WHAT
THE PRESIDENT HAS DONE AS FAR
AS CUTTING TAXES ISN’T WORKING.
HERE HE IS IN HIS OWN WORDS.
>> TRUMP ADMINISTRATION CUT
TAXES $2 TRILLION FOR HIGH
INCOME PEOPLE AND BIG
CORPORATIONS AND WE DID NOT GET
A MASSIVE MAGIC BEAN STALK
BEANS BOOM FROM THAT.
I JUST THINK THIS WHOLE
TRICKLE-DOWN THEORY WAS
DISPROVEN BY THE TAX CUT THAT
DONALD TRUMP PASSED.
>> Sandra: I’LL LET YOU RESPOND
TO THAT.
IS PRESIDENT IS STILL GETTING
HIGH MARKS AND SUPPORT ON HIS
RECORD ON THE ECONOMY.
HOW DO YOU RESPOND?
>> YES.
WELL, WITH RESPECT TO MY FRIEND
AUSTAN GOOLSBEE ACTUALLY THE
BIGGEST WINNERS OF PRESIDENT
TRUMP’S 2017 TAX CUT WERE
MIDDLE INCOME, THE BLUE COLLARS
AND LOWER MIDDLE INCOME.
SANDRA, THEY HAD THE LARGEST
INCREASES IN WAGES.
IN FACT, THE BOTTOM GROUP HAD
THE SINGLE LARGEST INCREASE IN
WAGES, MUCH GREATER THAN THE
SO-CALLED TOP 1%.
NOW, PEOPLE BICKERED WITH KEVIN
HASSETT AND I PROPOSED IT BUT
THAT’S HOW IT TURNED OUT.
LOWER CORPORATE TAXES, SMALL
BUSINESS TAXES, INCOME TAXES,
LET’S NOT INCLUDE THINGS LIKE
CHILDCARE CREDITS WHICH ARE SO
VERY IMPORTANT.
THE BIGGEST GAINERS IN WAGES
WERE THE MIDDLE INCOME AND
LOWER MIDDLE INCOME.
LOOK, WE HAD BEFORE THE
PANDEMIC A 3 1/2% UNEMPLOYMENT
RATE.
IT’S INCREDIBLE.
NO INFLATION.
AND STRONG GROWTH, ALMOST 3%.
AND EMPLOYMENT WAS RISING
SUBSTANTIALLY.
VERY FEW ECONOMISTS PREDICTED
THAT.
THAT’S EXACTLY WHAT HAPPENED.
IT WAS ACROSS THE BOARD.
NOT ONLY THE BLUE COLLAR BOOM
BUT AFRICAN-AMERICANS,
HISPANICS, ASIAN, WOMEN.
THEY ALL HAD RECORD LOW
UNEMPLOYMENT RATES.
YOU CAN’T DO MUCH BETTER THAN
THAT.
>> Sandra: I WANT TO GET YOUR
RESPONSE TO JOE BIDEN BECAUSE
THIS IS WHAT WE ARE SPEAKING
WITH AUSTAN GOOLSBEE ABOUT AND
JOE BIDEN TALKING ABOUT PEOPLE
PAYING THEIR FAIR SHARE, THE
RICH HE SAID THOSE THAT ARE
EARNING OVER $400,000 WILL SEE
THEIR TAXES GO UP.
LISTEN TO THE INTERVIEW FIRST
AND THEN WE’LL TALK.
>> I WILL RAISE TAXES FOR
ANYBODY MAKING OVER $400,000
AND I’LL TELL YOU WHY I’LL DO
IT.
ABOUT TIME THEY START PAYING
THE FAIR SHARE OF THE
RESPONSIBILITY WE HAVE.
CORPORATIONS SHOULD PAY A FAIR
SHARE.
CORPORATION IS MAKING CLOSE TO
A TRILLION DOLLARS AND PAY NO
TAX AT ALL.
I’M NOT PUNISHING ANYBODY.
>> Sandra: HE WANTS TO RAISE
CORPORATE TAXES AND HE MAKES IT
VERY CLEAR HE WANTS TO RAISE
TAXES ON ANYONE EARNING OVER
$400,000 IN THIS COUNTRY.
>> FIRST OF ALL, I DON’T WANT
TO RAISE TAXES ON ANYBODY AND
NEITHER DOES PRESIDENT TRUMP.
CORPORATE TAX CUTS, AS I SAID.
HELP THE MIDDLE CLASS THE MOST.
I DON’T WANT TO RAISE TAXES AT
ALL.
THE TOP 1% PAY THE BULK OF THE
TAXES.
I DON’T THINK THESE PEOPLE KNOW
THAT.
ROUGHLY 40% OF THE TAXES PAID
IN THIS COUNTRY COME FROM THAT
TINY IS SLIVER AT THE TOP.
SECOND POINT WE’RE COMING OUT
OF THE TOUGH PANDEMIC
CONTRACTION.
WE STILL HAVE TO DEAL WITH A
LOT OF HARDSHIP AND GET PEOPLE
BACK TO WORK AND GET THE
ECONOMY BOOMING AGAIN.
I THINK IT WILL GROW 20% IN THE
SECOND HALF.
FORGET SUPPLY SIDE, DEMAND
SIDE, WHATEVER, DEMOCRAT,
REPUBLICAN.
WHO IN THEIR RIGHT MIND WOULD
WANT TO RAISE TAXES?
PEOPLE WOULD SAY SPEND MORE AND
TAX LESS.
WHAT DO YOU WANT TO PICK THE
POCKETS OF TAXPAYERS IN ORDER
TO SUPPORT UNBELIEVABLE DREAMS
AND GOVERNMENT SPENDING?
WHEN I LOOK AT MR. BIDEN’S
NUMBERS I SEE $4 TRILLION IN
TAX HIKES WHICH IS
EXTRAORDINARY BUT I SEE OVER $6
TRILLION IN SPENDING.
SO BEWARE WHEN YOU HEAR THIS
IDEA ONLY THE TOP RICH WILL
PAY, THE ONLY WAY YOU CAN MAKE
UP THOSE TAXES IS BY TAXES THE
MIDDLE CLASS AND INCIDENTALLY
MR. BIDEN WILL INCREASE PAYROLL
TAXES ON THE MIDDLE CLASS.
THIS THING DOESN’T ADD UP AND
DOESN’T MAKE ECONOMIC SENSE.
I’M BEING PRACTICAL HERE.
WHY GO THAT WAY?
SHOW ME --
>> Sandra: THE FOUNDATION AND
TAX POLICY CENTER CAME UP WITH
THE SAME CONCLUSION THAT YOU
JUST DID WHEN LOOKING AT
RAISING THE TAXES ON THOSE OVER
$400,000 AND THE CORPORATIONS,
LARRY.
WE’LL HAVE YOU BACK TO TALK
ABOUT IT AND WE’LL SEE THE
ECONOMIC MESSAGE COMING ON THE