White House economic adviser Larry Kudlow on Friday’s “Varney & Company” on Fox Business Network suggested “incentive-oriented torque” to restimulate the economy, which has been devastated by the coronavirus pandemic.
Kudlow argued the United States is not going to spend its way out of the deficit caused by the coronavirus but floated the idea of lowering the corporate tax rate by 50% for to bring companies back home.
“I want to see incentive-oriented torque for this economy,” Kudlow advised.
He added, “To do that, Stu, we’re not going to spend our way out of that any more than we spent our way out of the [Great] Depression — although this is not like the Depression, this is about a virus, not about bad economic policies — but I’m just saying this: things like payroll taxes to boost take-home pay for workers, things like capital gains taxes — not just for the stock market by the way on cap gains, but we’ve got assets that have fallen 30-40%.”
“Or, for example,” Kudlow continued, “we’ve learned that the offshoring should be turned into onshoring. We cannot rely as extensively as we have in the past with respect to overseas countries, including China, which still has to be held accountable. So, maybe — this is a maybe — maybe the corporate tax rate of 21% should be lowered by 50% to about 10.5% for corporations who are coming back home. Maybe that’s something to look at.”
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