Calling the Senate’s $3.5 trillion reconciliation bill “the worst economic policy imaginable,” former Trump administration economist Larry Kudlow warned about the long-term impact on America’s middle class taxpayers.
“It’s not a $3.5 trillion package,” Kudlow told Sunday’s “The Cats Roundtable” on WABC 770 AM-N.Y. “When CBO [Congressional Budget Office] scores this over the 10-year period, which is the window of budget deal, it will come to over $5 trillion.
“I don’t know how much taxes they’re going to ask. It’s going to be a minimum of $3 trillion in taxes, and the middle class is going to pay for that – virtually every nickel.”
Kudlow argued to host John Catsimatidis that corporate taxes are paid by the middle class.
“Nearly 70% of corporate taxes are paid by people making $500,000 or less,” Kudlow said, quoting the Joint Committee on Taxation and the CBO. “And the bulk of that group is not $500,000; the bulk of that group is $50-$75,000 to $200,000, because that’s where the money is.”
Kudlow added Biden “is not going to fool anybody.”
“Corporations don’t pay taxes – people pay taxes” Kudlow said, arguing bottom-line businesses always pass the costs onto consumers in the way of “higher prices.”
Kudlow noted the “voters are smarter than the politicians” when they noted in polling they will ultimately bear the burden of Biden’s massive spending plans.
“This reconciliation or budget resolution package,” Kudlow concluded, “is absolutely the worst economic policy imaginable. It is completely divorced from economic conditions
“Polls are starting to show that voters get it. More spending equals inflation. And the middle class is going to shoulder all of the tax hikes proposed by Mr. [Joe] Biden and Mr. [Chuck] Schumer and Ms. [Nancy] Pelosi.
“It’s a terrible story.”