First, I want to briefly address President Biden’s budget, which is a completely stupid, massive tax and spend big government approach that looks like it was written by Senators Bernie Sanders and Elizabeth Warren.
The best we can determine is that there is a whopping $5 trillion tax hike, which alone will decimate the economy by imposing massive tax penalties on producers, investors and labor.
Even by Bidenomics standards, that’s an incredible wish list. I know it’s dead on arrival, but many people will still read it and ponder its potential impact on the debt negotiations and the 2024 presidential race.
As I have said many times, radical left Democrats want to punish success. They are the anti-free market capitalists of our time. I worked for two presidents, Ronald Reagan and Donald Trump, who believed in rewarding success by lowering marginal tax rates across the board.
JOB CLAIMS RISE TO HIGHEST LEVEL SINCE DECEMBER
The Bidens don’t care about economic growth. They are driven by their radical ideologies towards a vision of redistribution of a declining American economy. By the way, there are huge spending increases throughout this budget for welfare benefits without work requirements that make a mockery of the idea of deficit reduction.
In fact, spending under the Biden budget would remain at 25% of GDP. The fifty-year historical baseline is about 21%. So this is big government socialism and that spending will make it even harder for the Fed to reduce inflation.
A short list of tax increases includes: a 25% tax on individuals with assets of $100 million or more, from 21% to 28% in the corporate tax rate, an increase in the top individual tax rate, a doubling of the capital gains tax, an estate tax on of unrealized capital gains, Medicare tax increases, small business tax increases, huge increase in taxes on US foreign companies if they repatriate, taxes on oil companies, real estate, private equity, cryptocurrencies.
This is in addition to the $150 billion in business increases already enacted. The combination of this Biden tax and spend approach paints a picture of a stagnant growth, high inflation economy — as far as the eye can see.
We’ll talk a lot more about this budget debacle, but there’s more news tonight, and it’s much better, and I mean much better.
House Republicans are coming to save the economy with a new bill that I’ll let Speaker Kevin McCarthy, who is here next to me, describe in more detail.
For now, how many times have you heard me in the past few months talk about an HR 1 authorization bill that would unlock oil and gas and return America to energy independence?
Hold your breath and listen:
LARRY CALLS FOR AN HR LICENSE BILL 1: “Hopefully the next step will be a broad-based HR 1 authorization bill that will reopen fracking and pipelines and refinery and LNG terminals and all the rest.
An HR 1 and S. 1 House-Senate bill that would take the handcuffs off oil and gas production.
HR 1, take the handcuffs off gas oil production. Now, this is a Kudlow makeup issue. I’ve pushed that HR 1. I know I’m ahead of the curve.
I hope it’s HR 1
So, I make my perennial appeal to you, will we have HR 1 in the House? Will we have a bill that will reopen the floodgates?’
Scalise: “Hey, you and I are on the same page. We haven’t made that decision yet.”
Larry: “That’s right. HR 1, an S. 1, could become a reality if that’s true.”
McCarthy: “Our HR 1 will be to make America energy independent.”
Larry: “Kevin McCarthy. You get me every time on that HR 1. I love that. Turning on the spigots.” McCarthy: “Does it bring a little tear to your eye?” Larry: “It just puts a chill down my spine.”
Passage of this new legislation could see us produce 14-15 million barrels a day, unlocking clean-burning natural gas, boosting LNG exports, expanding refineries, pipelines, and cutting through the regulatory maze that radical climate change is causing Biden’s policies have been built.
You could be thinking of oil prices closer to $40 instead of $80 or $100. Gasoline would come back under $2. Workers across the economy will be able to afford their electricity and utility bills. Refined petroleum products permeate every corner of the American economy. Unlocking the fins will unleash affordable energy and that includes renewables.
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Fossil fuels affect phones, clothes, toothpaste, laptops, diapers, toys, hospital surgeries, life-saving medical products, hearing aids, glasses, soaps, aspirin, and the list goes on.
More than anything I can think of, a major league licensing bill will reduce inflation and revive economic growth. When you combine that with restrained spending, permanent Trump tax cuts, and Biden’s rollback of regulations, we could get this economy moving and restore the kind of prosperity Americans want.
This article was adapted from Larry Kudlow’s opening comment in the “Kudlow” edition on March 9, 2023.