Kudlow, im larry kudlow. So joe biden thinks he is going to tax his way into prosperity. That is in his new budget. He is wrong. Never works, never has, never will, neither by by the way will his massive new spending and borrowing. Art laffer and congressman Byron Donalds will carve the biden budget. And why are tax dollars being used to fly in joe bidens Illegal Immigrants . Senator katie britt will have something to say about that. Former Small Business cabinet officer Linda Mcmahon will tell us why the bidens hate Small Businesses. Then mark simone, joe concha will talk about armed troops in new york subways, firefighters a booing Letitia James, how woke were the oscars . Well go through tiktok. Should the United States ban tiktok or perhaps a Chinese Communist takeover will come to an end . But first up right here our own Edward Lawrence is live with all the good news. Im congratulating joe biden. He followed through on his state of the union with this terrific budget proposal. Edward, what can you tell us . Reporter yeah, taxandspend, right, that is exactly what he pitched at the state of the union. That is exactly what were seeing. He wants to spend 7. 3 trillion in this budget. That is more than last year. To pay for that in the budget he plans large tax increases, basically awe cross the board. Those taxes would bring in 5. 5 trillion which is more than 403 billion more than last year. Still, leaving a deficit of 1. 8 trillion in 2025. So the numbers dont add up. He wants to expand Free Community college. Expanded Child Tax Credit while creating a child care and Development Grants to pay for lower income families and national hepatitisc elimination program. There is not virtually a Single Program that joe biden wants to get rid of or even wants to cut. Basically expand programs, these new housing initiatives, new welfare programs, just more and more taxes on the top 1 . Reporter the president wants to expand medicare, increasing a special tax on families making more than 400,000 a year to do that. The Corporate Tax rate he wants to go up to 82 . He wants to raise the minimum Corporate Tax to 21 from 15. This is how President Biden is making the argument for higher taxes basically across the board by highlighting his crusade to add a wealth tax on billionaire. Listen. President biden if we just charge them, had a tax code that charged them 25 , not the highest rate, 25 , you know how much that would raise over the next 10 years . 400 billion, 40 billion a year. Imagine what we could do from cutting the deficit to providing for child care, providing health care to continue to provide military with all they need. Reporter the budget now goes over the congress. It has been submitted today. As you know republicans basically see this dead on arrival. The House Speaker will look for areas to cut in this, larry. Larry Edward Lawrence what a joyous presentation. We appreciate it as always. A couple thoughts from me on this before we get to our distinguished guests. I want to congratulate President Joe Biden who continues to believe he can tax the country into prosperity. I say congrats the entire history of the tax hikes, the ref new increases pan out, the economy is depressed and investment falters and if that is enough, you would be emulating western europe which has been taxing itself into recession for many decades including right now by the way. It is not exactly Big Government socialism but it sure comes close, doesnt it . Im proud of you, mr. President. You never miss a progressive beat. By the way i dont want to ignore the spending increases in the budget. I just felt like starting with tax hikes. Now mr. Biden flagged this in his bellicose, highly partisan and over caffeinated state of the union speech last week but in todays new biden budget it is all true blew, it is right there cold print. Race Corporate Tax. Let foreign governments tax our corporations. Bring back the phone any socalled book value tax which ignores statutory credits, deductions or expenses. Raise the top income tax, raise any number of investment taxes. Go for the unconstitutional wealth tax on unrealized capital gains. Jack up the medicare tax. Lots of other tax goodies. Comes to roughly 6 trillion over the next 10 years. So this is the point, when you raise Corporate Taxes you are hurting middle class working folks the most. Thats what the data show. They are going to bear about 70 of the tax hike burden. Taxing other investments or Small Businesses who pay the top tax rate or letting foreigners smash our first in Class Technology companies, all this drains the animal spirits from the economy, curtails after tax returns to work and investment and risktaking and of course blunts the supply side of the economy which means, higher taxes plus the massive biden regulatory state creates fiscal inflation pressures. The budget deficit will get worse, not better under all these tax hikes and let it be known that revenues are not the problem, all right . Never have been. They have been running steady at over 17 of gdp for many years now. The problem is spending which is running over 24 of gdp, much higher than the average of the past half century and where mr. Biden is always increased spending and borrowing by at least six trillion dollars but in this new budget he has roughly three trillion bucks in new proposals, brand new spending proposals, child care, education training, earned income case, paid family and medical leave, mortgage credits for housing, plenty of other stuff we dont yet know about. Oops, almost forgot one of them, student loan cancellations which the supremes ruled unconstitutional but mr. Biden congrats for ignoring that as well. No matter what youve been telling us deficits will continue to run two trillion dollars a year at least as far as the eye can see, if not more. Youve got a very good chance of achieving a 50 trillion in publicly held federal debt over the next 10 years. That would come to 120 of gdp in peacetime with less than 4 unemployment, turning John Maynard Keynes on his head. Im proud of you, mr. President. Youre breaking all known rules of all known economic schools except the progressive socialist school. But really taking a look at your economic polls in particular, and your overall polling performance in general, that progressive model youre clinging to doesnt seem to be working all that well for you. So, hate to say it, sir, it is time for a change. I happen to know somebody down in south florida who is just champing at the bit ready to take a big bite out of the apple and finally straighten america out. Just a few thoughts on my part, humbly given this evening. Joining me now were going to have some fun, art laffer, former reagan economist, author of taxes have consequences. Florida congressman Byron Donalds who knows a thing or two about all of this. Arthur, first of all, thank you for joining our esteemed congressman, byron donald. My pleasure. Larry congressman donalds thank you for joining me the esteemed art laffer, who taught me what little i know about economics. Arthur, let me ask you about this right at the top, all across the board tax hikes, creative, not, across the board tax hikes. Youre looking six trillion dollars in new taxes that is some phony revenue loss, arthur is there example in recent history, in deeper history where you can tax your way into prosperity, where raising taxes on individuals, on work effort, on investors, on capital gains, on corporations, on every darn thing that moves, is there an example . You just wrote a book about this, covering the last century or so, where is the evidence that shows you can tax your way into prosperity . Based on the evidence, larry, based on tax returns, every single time you raise tax rates on the rich, three things have happened. Number one, revenues from the rich have fallen. Number two, the economy has underperformed, and number three, the biggest damage done is on the poor, the minorities, the disenfranchised, those in the lowest echelon ladder. When you ever lower tax rates the economy outperforms, you collect more revenues, the poor significantly are benefited dramatically in that process. That is the truth for the u. S. In the entire period for the u. S. Income tax. If you look at states, states with highest tax rates underperform the states with the lowest tax. Nine state without a income tax, those outperform the states by far of the highest tax rates. Those states that adopted income tax since 1960, those 11 states, are the biggest underperformers all compared to the rest. Look at countries across the world. The example is clear, not only in the u. S. , not only historically but in the states and across countries. This is contrary to everything that facts tell us. Now my path hypotheses, Wishful Thinking that is all i heard in the state of the union. He is dead wrong on the tax issues and the spending issues. Larry Byron Donalds, mr. Biden said he would end trickle down, didnt work, he said people dont pay fair their share, the wealthy dont pay their fair share. These are assertions he makes time and time again during the course of his presidency into his fourth year. He said it again at the state of the union. It is in now, it is in the cold print of the budget that came out today. What do you make of that . He will not listen, he will not listen, nor will he look at the evidence, Byron Donalds . What i make of it, larry, is very simple, the president s budget is stupid, stupid document. It is not going to help the american economy. It is not going to help the American People. Let me also add this, if youre looking at the way he wants to raise taxes, who you are going to squeeze more are young people in our country, minorities in our country, who are trying to find ways to build generational wealth. They are trying to find ways actually, raise a pot of money, build equity, and pass that onto the next generation. Joe bidens budget and his tax philosophy will basically kill all of that. It will not make it possible. And last point i will make, larry, is, joe biden likes to talk about people not paying their fair share. He needs to look no further than his own son because his son was evading taxes. Talk to his son first, make sure his son pays up. We he tries to get money out of the pockets of the American People. This kind of a tax policy would shred an economy already weakened and on its back because of joe biden and radical democrat policy. Larry you know, art, of course, byron has a point about his, about his kid. Love it. Larry thats a good point. Lord knows what his Tax Liability really is but you know, this stuff has been tried in europe. This stuff has been tried in south america, this tax the rich stuff. Actually, as i saw it, in some cases i think with regard to Corporate Taxes and capitalgains taxes, the u. S. Would have a higher tax rate than china, which strikes me as not a good idea since were competing with china. They are our leading adversary or enemy in the world and the taxes dont, you know, the rich people dont pay their fair share, art. You have done work on this. The rich people dont pay their fair share, what does that mean exactly . I thought numbers showed exactly the reversed, that the rich pay half of the income system . Think do pay half the income taxes. I dont know what their fair share is according to joe biden but the top 1 pays about 50 of all taxes and the bottom 1 is zero. In fact i think they collect money from the tax system. If you look what he talks about the Corporate Tax, larry, which is just, we had a very large tax rate reduction under donald trump and if you look at it, it paid for itself within two years, larry. It paid for itself. It created the lowest poverty levels for poor, minorities underprivileged undereducated those had the lowest possible unemployment rates ever. He wants to reverse that up to 28 , make us probably the highest Corporate Tax in the world now. Now that would be undoing all of that advantage for the very groups that he is professing to want to help. He is going to hurt those people the most of all, frankly, if you look at these taxes, when gordon brown in britain raised highest marginal income tax in britain from 40 p, 50 p, 40 to 50 , taxes went down and britain went into a deep recession. Cameron lowered from 350 to 45, afraid to go all the way but improved. It was classic everywhere in the world all times. In the u. S. Over history it just doesnt work the way he is saying it done. No matter how wishful his thinking is, wishful think something not a plan, not a way to get success. Look at the facts, laurie, only the facts. That is what should drive Economic Policy and that is the furthest thing from bidens mind. Larry i want to get to Byron Donalds on the spending side. Sure. Larry biden is saying he will raise taxes by roughly 6 trillion, now that will lower the budget deficit. History will run against that, less growth, more sheltering, you will not realize the revenues. Putting that aside for a second, this is gigantic, the federal government is running 25 of gdp under biden. That is higher than the 50 year average, way higher than the 50 year average. You know, if you add state and local, you would probably have the governments across the board would be running nearly half of our national income. But there is no effort to cut anything. Thats the thing. 1 cut, 2 cut, pay fors, if you found something to be a positive initiative, why not pay for it with a spending cut some place else . I fear that even some of our republican friends have lost their, have lost their goal, have lost their enthusiasm for, they may complain about the budget deficit and the borrowing, Byron Donalds but nobody seems to really want to cut spending. This is it. Biden is typical of that. No spending cuts, just grow government as big as you want to grow it. Youre absolutely right, larry. There is a fever on capitol hill and it is spending other peoples money and it is not sustainable. Let me give you a couple of things. First and foremost we already talked about it. We raised 5 trillion in taxes. We should take the federal agencies back to precovid spending levels. That would cut federal agencies 20 . It is a major step in the right direction. Makes no sense the agencies are still spending if covid19 is still going on the pandemic is over. You have to shrink the budgets. Two, if you did that you would get consistency on capitol hill, if we made a strong push of republicans, im in favor of this, to actually cut spending the democrats are ones who would shut down the government. They would never agree to spending cuts. Think of how insane that logic is. We say cut spending, democrats would stomp their feet say no. We would never come to an agreement what to spend. The government will close and turn around and blame republicans because republicans want to be fiscally responsible. Republicans want to secure the border, republicans you know want to follow the law and follow the constitution. That is how reckless things are here up on capitol hill. I stress to my republican colleagues, especially our chairman and the leadership, we have got to get the fiscal house in order. We should be cutting spending dramatically in the next spending budget for the 25 fiscal year and if you have democrats who dont want to go along we should not capitulate to their rec recklessness barks us the country suffers f the country suffers, the American People will suffer even more. Larry just amazing byron, last point, i have to get out, you two are great, what is amazing he spent six trillion or so new in his first three years, the new budget would add three trillion, four trillion, the details come out, he spent all this money, he borrowed all this money and proposing tax hikes all the time, but byron, according to his polls, particularly on the economy, but in general his performance it hasnt done him a bit of good. It is like the American People are wising up to this taxandspend and progressive socialist, Big Government. It hasnt helped him. If it helped him he would be at 60 Approval Rating and 80 on the economy. He spent a bloody fortune. He borrowed us into you know what and it hadnt helped him one bit. I find that very interesting, maybe that is the only sliver, that is the only little kernel of optimism i can muster here. It hasnt helped him. Last word, byron donald. Youre absolutely right, it hasnt helped him. The reality is the democrats are a party of elites and party of people who rely on welfare. Unfortunate, but that is the indicates. All the money theyre spending goes to favorite the democrat elites who are taking the money to make other money for themselves and drown this country in massive amounts of debts. It is wrong, it is time for leadership on capitol hill and the white house in the form of donald trump. Larry yes, sir, i know somebody in south florida is waiting to darn to get a bite out of the apple. That is what i hear. Anyway, arthur laffer, thank you, congressman Byron Donalds thank you. Youre both fabulous. Folks coming up why are tax dollars, this is another lousy story, why are tax dollars being used to fly in joe bidens illegal migrants. They are not just undocumented, they are illegal migrants. We will talk about that and some other matters with senator katie britt of alabama when kudlow returns. Remember you can catch