The current US outlook for an economic recovery from the coronavirus pandemic is positive, but that may change if former Vice President Joe Biden wins in November, White House adviser Larry Kudlow told “Your World” on Thursday.
Kudlow claimed that Trump’s agenda of deregulation and tax cuts favored the U.S. economy ahead of the COVID-19 pandemic, adding that the country saw a ‘V-shaped recovery’.
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“This will be a self-sustaining economic recovery with very large numbers in Q3 and Q4,” he said.
Kudlow added that by setting higher taxes, Biden and running mate Kamala Harris could end up with America’s ability to recover from the economic impact of the coronavirus.
At one point, host Neil Cavuto Kudlow had asked about Biden’s commitment to make the economy more equitable as president.
“What I make of it are higher taxes,” Kudlow replied. “It’s very clear that the other team will raise taxes. It’s in their policy book. We’re looking at at least a trillion of $ 3 trillion in taxes. You know, I was just saying, Neil, I’m not the political man, “I’m the policy fellow. If you’re in a pandemic shrink or come as we’ve experienced – brutal, troublesome, heartbreaking stuff – you do not want to increase taxes.”
Both Biden and Harris have promised to repeat President Trump’s massive cuts and proposed the kind of programs that conservatives speculate will lead to higher taxes.
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“I mean, it’s like, ‘Where are the Keynesians now that we need them?’ A self-respecting Keynesian would say you spend more and less tax, and that team – [the] Biden team – talk about, yes they will spend a lot more, but they will also pay a lot of tax, “said Kudlow.
“They will increase corporate taxes, they will increase individual taxes. They will increase the capital gains tax to 50%? What a constraint on investment and productivity and real wages.”
Biden has indicated that he would target individual tax increases to high-income earners, and promise not to raise taxes on anyone making less than $ 400,000 a year.
