On Thursday, economist and CNBC contributor Larry Kudlow was named the new director of the National Economic Council at the White House. Kudlow is a longtime advocate for low taxes, free trade, and looser immigration restrictions. Although he has softened slightly on the last two, I am hopeful he will use his new perch to continue to advocate forcefully for all of these positions.
To many in Washington and New York, Kudlow is known for being one of first supply siders. He was a supply sider when supply side wasn't even a thing, and he has remained loyal to that way of thinking. In other words, he likes his and everyone else's taxes low—especially as they apply to capital.
Needless to say, he was happy with the tax reform plan passed and signed into law last December, especially the reduction of the corporate tax rate from 35 to 21 percent. Kudlow is more politically savvy than I am, so he probably had more tolerance than me for the "middle class tax relief" part of the plan. In my humble opinion, if Congress and the president won't cut spending, they shouldn't implement tax cuts with no apparent economic growth payoff.
Read more: Larry Kudlow, Trump’s New Economic Adviser, Is a Longtime Advocate for Low Taxes and Free Trade