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GOP Moderation Must Cease: Larry Kudlow's Advocacy

Preventive Measures Against Moderate Republicanism's Invasive Form - As Perceived by Larry Kudlow

,   and  ASMedia
3 min read
Stem the practice of 'Root Canal Republicanism' as advocated by Larry Kudlow
Stem the practice of 'Root Canal Republicanism' as advocated by Larry Kudlow

GOP Moderation Must Cease: Larry Kudlow's Advocacy

Even though the "One, Big, Beautiful Bill" didn't pass the House Budget Committee today, it's not a cause for concern. This bill is set to make its way through the House. So, confidently invest in it.

Following his successful Middle Eastern trip, President Trump is putting pressure on the budget. And, he's been vocal on Truth Social, encouraging Republicans to unite behind "THE ONE, BIG BEAUTIFUL BILL!" This bill includes across-the-board tax cuts, deregulation, and new laws aimed at reducing spending, all of which will boost economic growth.

Remember, the economic power of growth is immense. Rapid growth leads to increased prosperity, which in turn reduces the demand for federal spending while the economy continues to expand. This is something the late great Jack Kemp always highlighted.

In Congress, there's a tendency to take growth for granted and make excuses for increased spending. But, we must remember that growth is the key to economic success.

When it comes to the Congressional Budget Office, they typically assume the economy can grow no more than 2%. But, supply-siders know better. Lower taxes stimulate work and investment incentives, while eliminating regulatory barriers benefits businesses and lowers consumer costs.

According to White House NEC Director Kevin Hassett, the passage of this reconciliation bill could boost growth from the CBO's conservative 2% to a more robust 3% or even higher. Over ten years, this growth differential could amount to a staggering $4 trillion—a major supply-side growth dividend.

Work requirements for Medicaid, food stamps, and other welfare-related programs are crucial, and they'll result in significant budget savings, similar to the approach taken in the mid-1990s during the Bill Clinton-Newt Gingrich era when welfare was curbed, and workfare was promoted.

Taking illegal aliens off the government dole is also a good idea. However, we must never lose sight of the importance of growth.

Here's a sneak peek at what the bill is all about:

  • TCJA Tax Cuts Extension: The bill aims to permanently extend many TCJA tax cuts due to expire by the end of 2025.
  • Qualified Business Income Deduction Increase: The deduction percentage increases from 20% to 23% for QBI, and modifications are made to the wage and investment limitation and SSTB limitation.
  • Estate and Gift Tax Exemption Enhancements: The bill permanently extends and increases estate and lifetime gift tax exemptions, enhancing them to $15 million for single filers and $30 million for joint filers in 2026, with inflation indexing.
  • Child Care Services and Small Business Support: The bill allows small businesses to pool resources for employee childcare and use third-party intermediaries for childcare services.

Among other proposed tax cuts, the bill also introduces tax relief for middle-class and low-income Americans, temporary auto loan interest deductions, and a temporary tip income deduction for traditionally and customarily tipped industries.

While the bill is expected to boost economic growth, it's estimated to reduce federal revenues by $4.1 trillion between 2025 and 2034, potentially impacting government spending and deficits. It also repeals IRA green tax subsidies, which could reduce renewable energy investment incentives.

In short, the "One, Big, Beautiful Bill" is designed to increase economic growth and the prosperity of businesses and families. Keep an eye on its progress—it's worth the watch!

  1. The 'One, Big, Beautiful Bill' aims to boost the economy by extending many TCJA tax cuts permanently, which could stimulate investment and work incentives.
  2. The bill's proposed tax cuts, including those for middle-class and low-income Americans, may positively impact family prosperity if passed.
  3. Due to potential revenue loss from tax cuts and the impact on government spending and deficits, ongoing policy-and-legislation discussions about the bill are of significant interest to economics and general news.
  4. Regardless of the political debates surrounding the 'One, Big Beautiful Bill', it's crucial to acknowledge its potential for economic growth, savings, and future asset accumulation.

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