Larry Kudlow: Congressional repeal drama is a lesson for GOP to ‘make it easy’
FOX Business host Larry Kudlow shares his take on the congressional spending debate and what it means for the incoming GOP majority on ‘Kudlow.’
The GOP lesson: Simplify, simplify, simplify — and that’s the theme of the riff.
The most important thing I’ve seen in all of this end-of-the-year congressional spending spree and the difficulty of getting a deal — is what it tells us about the difficulty of more than one reconciliation bill next year.
So far, the House has come out twice to find a deal to avoid a government shutdown.
And avoiding a government shutdown is desirable – not in economic terms, but in political terms, it can be thought to give Sen. Chuck Schumer more power by getting a certificate for the presidential election in Jan. 6, even the ordination on Jan. 20.
The Schumer Democrats are diabolical, and you never know what will happen if you leave them in charge – even for a few more weeks.
Now, a third continuing resolution deal has been passed by House Republicans, and it awaits President Trump’s approval.
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It will look like the interim deal that was defeated last night. It will delay debt relief until March 14, and is expected to cut about $2.5 billion in federal spending during the yet-to-be-determined debt reconciliation next year.
But as anyone can clearly see, this simple operation of extending the subsidy for a few weeks, has become very difficult, very controversial and unpredictable.
And I believe it’s the best indicator of the potential problems the GOP may face next year if they continue to believe they can pass more reconciliation bills in 2025. They must play themselves.
A recent poll by McLaughlin & Associates shows that nearly half of all voters think we are in a deflationary climate, and more than four in five continue to worry about inflation.
Thirty-five percent of voters say it’s more important for Trump to secure the border — and behind that, 26% say further growth by making Trump’s tax cuts permanent. The economy as a whole is still the #1 issue, way over the border.
And Trump Tax Cuts 2.0 is very popular – with 82% in favor of ending federal taxes on Social Security earnings, 71% in favor of ending the federal tax on tips for service workers, 64% in favor of ending the federal tax on overtime pay to workers, and -70% favor making Trump’s 2017 tax cuts permanent.
Former World Bank President David Malpass joins ‘Mornings with Maria’ to discuss the federal spending bill deadline and how it could impact President-elect Donald Trump’s agenda.
Currently, Mr. Trump and his transition team are very popular. His approval rating is over 50%. He is enjoying an almost unprecedented post-election vacation.
But if we return to the legal strategy that will be more important, the policy authority of Mr. Trump since the election – and I think the Republicans who think it’s going to be easy to pass a few reconciliation bills are seriously mistaken.
The confusion in the Parliament between the Republican parties in the last few days, centered on what should be a simple exercise, is a big red flag warning for making things more difficult next year.
A reduction in tax deductions can be a big mistake. Delaying tax cuts will not put more money in the hands of working people. Delaying tax cuts will not fatten blue wallets. Those are the people who voted for Mr.
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The GOP has winning issues – like closing the border; reducing taxes; and drill, child, drill; and reducing the regulatory environment. Put them all together, and do it as fast as possible.
And be sure of the almost impossible problems that many large debt reconciliations will cause.
A source close to President Trump says he wants one big, good deal. As always, you are right.
This article is adapted from Larry Kudlow’s opening remarks on Dec. 20, 2024, edition of “Kudlow.”
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