Larry Cudlow: I don’t think Trump’s tax will raise rumors

Yesterday was Tax Day, and it would have been a good time for the White House to take all the rumours of Republican tax rise. Instead, I received a Bloomberg article titled “Billionaire tax hikes increase steam as Trump shows openness.” Now openness doesn’t mean that the president registers with it. Knowing him, he is open to discussing many things he ultimately rejects. So I believe this is something he ultimately rejects. The promises and promises are kept. I don’t think Trump will sign on to tax increases.

A promise has been made Extending tax cuts in 2017Maintaining a top bracket of 37%, 3% points includes a reduction in the low bracket line, double standard deductions, double child credits, lower tax rates for re-eutered foreign income, a 21% corporate tax rate, and 100% cost of machinery and equipment. A Bloomberg article suggests the need for a higher tax rate as wages. But this makes no sense as Trump and Republican leaders in the House and Senate are all agreeing to the current policy baseline that will only extend the 2017 tax cut and will become deficit neutral. Incidentally, 44 Republican senators and around 180 Republicans have signed Glovernorkist’s “tax-free” pledge.

Therefore, if Trump pushes for tax increases, A big and beautiful settlement bill It will be destroyed.

And, as Trump knows, the highest personal tax rates are paid by LLCS or S-Government Small Business Owners. This actually constitutes a large portion of the employment and income generated in the economy. Small business owners are already concerned about the impact of higher tariffs, why do they strike them again with higher tax bills?

Trump is a small business champion. That’s always the case. He’s fine too I’m familiar with Luffer Curves He presented Dr. Raffer with the Presidential Medal of Freedom during his first term. Laffer Curve argues that high tax rates will weaken economic activity and greater tax avoidance will lower revenues. Many wealthy people can afford top flight tax accountants, and they avoid paying more taxes. Incidentally, the top 1% of taxpayers have already paid 45% of their income tax, almost half of them.

The article then states that higher tax rates for top earners can offset the expanded state and local tax credits. But it only affects the real high earners. So, let me get this right, Trump will raise taxes on high-income people, but will he reduce the tax burden by giving the same high-income people a large tax deduction? It’s meaningless. And the president is a common sense man.

Unfortunately, some Treasury ministries have spoken about “everything is on the table” or many many ideas being studied to minimize the total cost of tax bills. But these officials will better advise against sticking to Trump’s policy that they intend to extend the 2017 major tax cuts bill.

Now, Trump has added some tax additions: tax exemption tips for service workers, tax-free overtime, and tax-free relief for seniors. He also encourages onshoring by adding a 15% “Made in America” ​​corporate tax. It also encourages supervision retroactively to January 20, 2025, as well as immediate costs for factory investments. These are outside the current policy baseline. But rather than raising some taxes Financial tax reductionwhy not take advantage of either Elon Musk Doge’s savings or estimated tariff revenue?

Trump has always believed in rewarding success, not punishing it. A garage child, or a small businessman on Main Street, or a successful investor, should not be punished for becoming wealthy.

Trump is determined to replicate our economy, adding many new dynamisms and risk taking risks along the way. He said that hundreds of times. Why does he want to raise him to curb this?

All of this is why I don’t believe he’s going to tax-free.