LARRY KUDLOW: I don’t believe the Trump tax hike rumors

Yesterday was tax day, which would have been a good time for the White House to rest all the rumors of an increase in republican taxes. Instead, we obtained an article from Bloomberg entitled: “The rise in millionaire tax earns steam as Trump signals the opening.” Now the opening does not mean that the president would sign on it. Knowing him, he is open to discuss many things he ultimately rejects. This is why I think it is something that he will ultimately reject. Promises made, promises. I don’t think Mr. Trump connects to an increase in taxes.

The promise was made to extend the tax reductions of 2017, which includes maintaining the upper support of 37%, reductions of 3 percentage points for lower media, a doubling of the standard deduction, a doubling of children’s credit, a lower tax rate on foreign income of 21% of companies and 100% of the costs for machines and equipment. The Bloomberg article suggests the need for higher tax rate as a salary. But that does not make sense because Mr. Trump and the Republican leaders of the Chamber and the Senate all accepted the current reference of the policy, which simply extends the tax reduction of 2017 – and would be neutral with deficit. And by the way, 44 Republican senators and around 180 members of the Republican Chamber signed the “No Tax” guarantee of Grover Norquist.

So, if Mr. Trump pushed an increase in taxes, the great and beautiful reconciliation bill would be destroyed.

As Mr. Trump also knows, the highest personal tax rate is paid by owners of small LLCS companies or the body S. which really includes most of the jobs and income generated in the economy. Are owners of small businesses are already concerned about the impact of higher prices, so why knock them again with a higher tax bill?

Trump is a small business champion. Has always been. He also knows the Laffer curve well when he presented Dr. Laffer the presidential medal of freedom during his first mandate. The Laffer curve maintains that higher tax rates will generate lower income thanks to lower economic activity and greater tax avoidance. Many rich can afford high -level tax accountants and they will avoid paying more taxes. By the way, 1% of taxpayers already pay 45% of income tax, almost half.

Then, the article contains higher rates on high employees could compensate for an extended and local tax deduction. But that had no impact on high employees. So let me do things well, Trump would increase the tax on high people, but at the same time would reduce the tax burden by giving the same employees a greater tax deduction? Has no sense. And the president is a type of common sense.

Unfortunately, some treasure officials have spoken of how “everything is on the table” or many ideas are studied to minimize the total cost of the tax bill. But these officials would be much better informed to stick to Trump’s policy that he intends to extend the 2017 tax reduction bill.

Now Trump has added a few tax additions: Tax Advice for Services workers and overtime in tax franchise and tax relief for the elderly. He also added a corporate tax of 15% in America to encourage surface. And immediate expenses for factory investment, retroactive until January 20, 2025, also encouraged hiking. These are not outside the current base of politics. But rather than increasing certain taxes to finance tax reductions, why not use Elon Musk Doge savings, or estimated tariff income.

Trump has always believed in enriching success, and without punishing him. The child in the garage, or the small businesswoman on the main street, or the selected investor should not be penalized to have become rich.

Trump is determined to reprimand our economy, adding a lot of new dynamism and risk -taking in the process. He said a million times. Why would he want to raise to suffocate this?

These are all reasons why I don’t think he’s going to do tax hikes.