Larry Kudlow, the veteran financial guru and former economic adviser to President Ronald Reagan, said business tax cuts will lead to federal budget deficits that will be overcome in a few years.
President Donald Trump on Wednesday will announce his tax reform proposals, which will include a cut in the corporate tax rate from 35 percent to 15 percent. U.S. Treasury Secretary Steve Mnuchin said the plan “is going to be the biggest tax cut and the largest tax reform in the history of our country” at a news forum in Washington.
“I don’t know that they’re going to get larger deficits, maybe the first year or two,” Kudlow said in an interview from Washington with CNBC. “Or even the first three. I’m here to say that the business tax cut side is going to pay for itself. Give it a couple, three, four, five years.”
Kudlow, who helped to