and why are democratic video paraproxies stalking republican candidates in their home? we'll have the shocking videotape. "the kudlow report" is just moments away. >> i'm not telling you to hide in the bathroom or kitchen. there are a lot of good ideas there particularly at a moment i'm worried about the earnings coming from financials, technology and from the industrials. because those are too tied to europe which we know is doing poorly. there's always a bull market somewhere and i promise to find it for you right here at "mad money." i'm jim cramer. see you tomorrow. hey, larry, what do you have for us? all right, jimmy. here's what doesn't work for me. president obama's tax hikes on successful investors, capital gains, dividends. bad for stocks and the economy. good evening. i'm larry kudlow. this is "the kudlow report." our top story tonight, the president in a desperate attempt to shift focus away from a dismal jobs report on friday and

an anemic economy today urged congress to -- bush era tax cuts for those making $250,000 and below. it punishes s-corp.s, small business owners and if someone could explain how punishing successful earners sh businesses and investors help it is economy? call me, tweet me, write me. the market saw right through it. closing down for the third straight day. earnings season has begun. we'll warn you how growth forecasts from companies reporting earnings come from already slashed estimates. in other words the beat may not be a beat. and we'll say how democratic operatives admit to chasing down candidates, not just in public events but in their homes and posting it online. that's wrong. first up this evening let's get the latest on the tax cut extension president obama unveiled today.

eamon javers has the details. good evening. >> good evening. it was a campaign style event at the east room today. the president surrounded by middle class americans the white house said would benefit from the tax program he was anoupsing today which, as you say, was about limiting the bush era tax cuts, extending them only for people making under $250,000 a year. the president didn't specifically mention president george w. bush or mitt romney by name specifically. he did implicitly link the policies of the two men. >> we have tried it their way. it didn't work. congress passed trillions of dollars in tax cuts that benefitted the wealthiest americans more than anybody else. what happened? the wealthy got wealthier. most americans struggled.

>> the president said today he would call for congress to take action on this. nobody in washington expects the legislative grid lock here to break any time before the election. that means this issue and so many others in the fiscal cliff scenario will have to be dealt with sometime after the election between november and the beginning of next year. so there are six to eight weeks where washington has to deal with some stuff. for now this is all politics. >> all right. just a quickie. >> yeah. >> what you're saying is the so-called middle class tax cuts will be extended but the upper end tax cuts for the rich, et cetera, et cetera, will be ended permanently. is that the idea? ex-tep teptend the middle class? >> that's what the president is proposing. he paints it in the light of going back to the clinton era policies. he says this is about going back to an era where they have growth

and job creation under bill clinton resetting rates for the rich. that would be a tax increase for them. >> many thanks. to me it sounds like more class war fare rhetoric. joining us with with reaction from the romney campaign we welcome back tim pawlenty, a key romney spokesman. great to see you, sir. >> good to be with you, larry. >> let me just ask you. i know there is class war fare and nobody likes that. in some sense did president obama beat you, get a leg up on middle class tax cut message today? is that possible? >> well, this is not something new for the president. it's hard for him to get something that's a leg up for something he's been talking about for years. bottom line is this. you've got a president who believes in class war fare. we have a country where maybe 5% of the country is entrepreneurs.

that becomes 6 to 9% we have people starting and growing more businesses, more jobs we have a bright future. the number becomes 1, 2% we are in deep doo-doo. he doesn't understand growth, the private economy, that employment and formation of capital. he doesn't respect it. he's kicking the entrepreneurs in the shin. >> i know those are the campaign points. when i interviewed governor romney he talked about middle class tax cut. in his case it's a permanent reduction in the capital gains tax. so you have obama today getting there first. that's what i'm asking you. did governor romney come out with his middle class tax cut today as a rejoinder to obama's middle class tax cut. >> as you know, and you applauded this proposal. in addition to cutting corporate rates governor romney says let's

cut all marginal tax rates. including sub chapter s, llcs and the like. he called for eliminating middle income individuals taxation on interest dividends and capital gains. that was done months ago. so mitt romney got the jump on barack obama. >> all right. governor, stay with me for a second. i want to get a quick response from an economist and friend of ours. jared bernstein and art laffer. we'll come back for more later on. i need 30 seconds each. you heard governor tim pawlenty. >> we'll have a great fight over the investor stuff. for now, everybody. governor pawlenty, you, me, everyone agrees we should extend the tax cuts for the middle class. just do it. >> art, what's your quick

response to what governor pawlenty should say? >> i don't think we should raise taxes on any group. this is a tax increase not a cut. why you should single out one group of people and raise their taxes makes no sense especially when you realize it can't pass and it will have virtually no effect on the deficit: what's going on here? more corn pone politicking. >> we'll have more detailed discussion. let me go back to governor tim pawlenty. you know there's been a lot of information from conservatives. they are saying the romney campaign is relying on the anemic economy and the high unemployment rate. the campaign doesn't have a growth message for voter, middle class, otherwise. can uh you tell me what are the key bullets of economic growth from the romney campaign? >> great question.

important point, larry. >> we want to grow the whole pie and not do what the president is doing, having people fight over increases or shrinking pieces of a smaller pie. key points, cut the corporate tax rate from 35% to 25%. number two, across the board income tax cuts. number three, elimination of taxation on interest dividends and gains for mid incomers. number four, an american -- number five, repeal obama care and replace it with market and consumer oriented health care. number six, get a lighter touch and more modern touch on regulation. mitt romney called for the repeal of dodd frank reducing the footprint of regulation more broadly. the list goes on. >> that's it. >> pro growth, pro investment. >> that's as good a list as i have heard from anybody in the cam pain. well done. you should have run for

president, mr. pawlenty. >> i tried that, larry. >> let me ask you one last question. the campaign is being hammered by team obama on the whole issue of bane bain capital, outsourcing and all of that. they got their ads up in the midwest swing states before you got your ads up. how much is it hurting bain capital, outsourcing, swiss bank accounts. how much does it hurt and when do you rebut them? >> the polls are tied nationally. in the swing states it varies week to week and day to day. the race hasn't changed since the launch of the attack. i would call on the president to stop spreading falsehoods. he's basing those claims on a washington post article that's been discredited by every group including the washington post's own ombudsman. he's repiecing unbased claims on a story he knows is false.

it's dishonoring and he should stop spreading falsehoods. >> former minnesota governor tim pawlenty. appreciate it, sir. now back to our two famed renowned economists. jared, of course we have debated before. i want to get to the economy. i don't understand. why would you want to raise taxes. i don't get it. >> we are talking about raising real money for deficit reduction. that's important for the economy, too. here's the thing. if we kick the can down the road on the tax cuts they will be permanent. you and art may like it. if you think back to the years when we had the higher tax rate we had more balance. going from 36 to 39 or even 40 plus is absolutely fine in terms

of balancing our revenue and growth needs. it's that simple. >> is it that simple, art? as i understand it, you've got these tax proposals but you also have obamacare raising taxes more. >> a lot more. i adore you, jared. it's fun being on with you. let me say, number one, you're not going to raise the revenues. cameron tried it in england. raised the highest rate from 40 to 50%. two years later they have gone into a double dip recession. it doesn't work. you don't get the money. number two, bill clinton cut government spending as a share of gdp by more than the next four best presidents combined. if you got this president to do it you might get a good economy. you have new taxes coming that are huge. you will cause a tragedy of incredible proportions in 2013 if you don't get off this kick. >> i like your spending point, by the way. that's an accurate assessment of the numbers on the spending side. i will say this. you can't forget that the way

you guys make the tax increases sound like they are going to affect everybody, the top two percent. >> it's much more. >> on the numbers of whether the revenue comes in, i will trust the cbo on that one. >> oh. >> i like you as much as you like me. but for the numbers i'm going with the cbo who says $850 billion from the high end tax cuts. >> art, let me ask you. >> sure. >> how bad is the economy now? >> terrible. >> the job numbers are anemic. gdp. >> it's the worst -- >> double dip recession or not? >> we're close. the single worst recovery of all time. if the tax increases go through to 2013 we fall off the cliff to be honest with you. the top 2% jared refers to it's not just their income. they employ everyone else, invest capital and provide the economic recovery. it's terrible.

>> do you want to risk falling off the cliff? >> i don't. >> please don't. >> of course i don't. i started out earlier saying we all agree the bulk of the tax cuts affecting the bottom 98% ought to be extended. the three of us agree on that. governor pawlenty agrees. why don't we start there tomorrow. you want a tax cut, that's the one to go with. >> you don't just save all but one kid on the boat. save them all and let the voters decide. >> we have to get out of here. instead of raising taxes we should be reforming taxes. lower the rate, broaden the base and get away from class war fare. coming up on "kudlow," it's here. earnings season is kicking off but beware of the word beat. when the bar is so low how much of a beat is it? not to fear.

we have ken heebner. later on the program remember these words by my hero ronald reagan, are you better off than you were four years ago? well, according to a new pole obama's own goose is cooked. don't forget, free market capitalism is the best path to prosperity. tax reform, pro growth, on the supply side, lower the marginal rates, grow the economy at 6%. i'm kudlow. we'll be right back. this is the first car that i've been totally in love with in every way, shape, and form. it's my dream vehicle. on a day to day basis, i am not using gas. my round trip is approximately 40 miles to work. head on home, stop at the grocery store, whatever else that i need to do -- still don't have to use gas.

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stocks gyrated throughout the day and investors are jittery. profits are the mother's milk of stocks. so alcoa kicked off with a one penny beat after the company substantially cut back on guidance. when is a beat a beat? let's bring in distinguished investor ken heebner, capital growth management. i don't want to rain on your parade to buy america. ford, p & g, they are all slashing guidance.

this beat gain doesn't do much for me. what's your thinking? >> we have a problem with the rest of the world. europe is in a deepening recession. china is facing a slow down. india and brazil disappointed so you need to focus on earnings coming from the united states. ford is doing well in north america. they have growing losses in europe. we have to focus the portfolio. >> if you have this falter. gdp growth. manufacturing drop below 50. >> first i would make the point although growth isn't as great as i thought it would be, we are still growing at a very slow pace. i think there are forces at work to drive the economy forward at a faster pace. i think what's happening in the housing area is a major one of

those. what you've got is a developing shortage of housing. we have been building housing units in terms of single family and apartments at the rate of under 700,000 a year when household formations are a million to a million three. total housing starts were running 2 million at one point. >> all right. i can see the point on housing. housing looks better. so in terms of your buy america strategy, can you give us examples? what do you like? >> everything related to housing is going to surprise on the upside. i want to make a point here. apartments as well as housing and it's also domestic construction is also going to be a major beneficiary. when you start building more apartments and more houses, you build more shopping centers, more things in service. increased size of communities. i also think the banks are overly abused. our global banks. the best capitalized in the world. they are beneficiaries of the tremendous stress the european

banks are under because they are going to -- they are gaining share now against european competitors. a capital constraint. >> last one. do you need qe 3 for your picks to come through? >> it would be helpful and we'll get it. i don't think we need it. it's driving housing and autos. you're not seeing it in stocks but the seasonally adjusted rate in cars went from 9.5 a million to 14 just based on necessity. >> all right. going to leave it there. ken heebner, optimistic. buy america. as i understand it, especially the housing sector and maybe retail as well. programming note for wednesday, i'll be live from washington, d.c. some very special guests. former federal reserve chair alan greenspan and congressman eric cantor. up next tonight we'll expose

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mexican nationals for the murder of u.s. border patrol officer brian terry. the department inspector chairman says if it opens an investigation into the treatment of whistle blowers. the dispute between the committee over the fast and furious case documents led to the house contempt citation against eric holder. it looks like just a small number of internet users were affected by the malicious software that could have kept them off line. experts at the highest levels of government say cyber espionage is the biggest aggressor the new wave is china. david faber investigates the chinese threat in a new documentary here on cnbc tonight. >> what is the worst case scenario? >> we continue to bleed our intellectual property until we can't compete with china

specifically. now they can compete in cars, durable and nondurable goods, mostly research and development stolen from the united states. if we lose it, we lose the edge to future prosperity to the united states. out's that serious. >> it premiers tonight at 9:00 p.m. eastern. tune in. finally, the new federal consumer financial protection bureau has been working on rules to make mortgages simpler. eliminate the eye glazing language which requires a law degree to understand. the proposed rule and documentation that runs with it north of 1,000 pages. simplification is too complicated for some. >> have you ever seen a mandate like that simple to understand? >> you would imagine it's a thousand degrees. i have a law degree and i don't want it to read it. but i'm not surprised. >> up next on kudlow, are you

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welcome back to "the kudlow report." i'm larry kudlow. in this half hour, today president obama tried to change the debates to soak the rich taxes and give it away in friday's jobs report. class war fare won't work. new tonight treasury secretary tim geithner meets with senate democrats but i bet there are enough democrats willing to run away from the president and pass an extension of all the bush era

tax cuts. that's my bet. and new details, democrats admit they are video stalking republican candidates not only covering the republicans but stepping over the line into their homes and posting the video for all to say. we'll expose the dirty tricks. first, president obama promised change and four years later he may have changed the country but not in the way many hoped. a new pole from the hill website and newspaper finds 56% of likely voters believe obama's first term has changed the country for the worse. troubling signs for his re-election hopes. will mitt romney borrow this line from reagan? >> are you better off than you were four years ago? is it easier for you to go and buy things in the stores than it was four years ago? is there more or less unemployment in the country than there was four years ago?

>> welcome back to the show the communications directors of the democratic and republican party. mr. brad woodhouse, our democrat. sean spicer, our republican. thank you. brad, let me begin with you. i'm sure you saw the hill poll today. a distinguished newspaper and website. majority believe that obama has changed the country for the worse. he won't pass the reagan question, are you better off than you were four years ago? what's your take, brad? >> look, i think people are better off than they were four years ago. four years ago around this time we saw the economy falling off a cliff. when the president took office we were losing 750,000 jobs a month. we are gaining jobs each month. we have for 27, 28 consecutive months to the tune of 4.4 million jobs. we need to do more. but we'll have a conversation, larry. people will have an opportunity and in many ways this campaign is just getting started.

we'll have an opportunity to lay out a vision for the future. so do you want to continue in the direction the president has the country going which has been making progress or do you want to go back -- >> to the bad old days. >> to what george bush was doing. >> looks like, sean, people want to go back to the bad old days. this is a hill poll. it's a thousand likely voters done by pulse opinion research. what's your take? where are the numbers coming from? >> i don't think they needed to do a poll to tell us. it's obvious. just talk to anyone in america about how they are doing. they would have told you that. what the poll says is when asked the same question about whether mitt romney would do a better job the same percentage says, yes, he would do a better job turning the country around. when the third question came which is do you think this election is of monumental importance in terms of the direction of the country 77% said yes it is. the american people, the conversation brad wants to have with folks has been going on.

>> before you respond to the talking points and i know you will. i appreciate that. inside the poll, one of five democrats, 20% say they feel obama has changed the u.s. for the worse. i think a lot of people are clinton democrats. what's your reaction? 20% of this poll, 20% of the democrats think obama has changed the country for the worse. >> my first reaction is i have never heard of the group that conducted this poll. i guess if we want to start comparing polls, you know, sean and the romney campaign can explain if all of this is true why is he losing in every battleground state? >> that's not true. >> it is. a poll showed he's down in north carolina again. he's behind in every battleground state after hundreds of millions of dollars spent by outside groups on his behalf pounding on the president.

i will answer the question for you. no one in america except people funding the romney campaign want to go back to doing the things we were doing that got us into the crisis to begin with. that's where mitt romney wants to go. we can compare polls all day long. romney is behind in every battground state, behind nationally. democrats are more enthusiastic about the election than republicans. those are the facts. >> sean, what's happening with the battleground polls? i have seen aggregate polls and i know it's a toss-up. what states do you include? i have seen the gallup poll that shows the president has the lead in the toss-up states. why is that? >> there are several. >> go ahead. >> we're not doing well in north korea north carolina -- north carolina? we are doing great there. we have seen states that were strictly dark blue for obama like wisconsin, michigan, pennsylvania where we are extremely competitive. i love where we are now,

frankly. i think as far as the support goes, just this morning, you know, last month we raised the obama and democratic national committee. they said it was a fluke, it was a one-time deal. this morning we announced we raised $106 million in june. 95% of that from people under $250. the democrats came in at 71%. they keep trying to make up these excuses as to why they are not getting the support they need. >> except for the polls where we are ahead. all of the money. >> that's. >> all the money crossroads spent. we are ahead in all the polls. do you know why? the american people don't understand why mitt romney had a swiss bank account. they don't understand why he offshores money and outsources jobs. that's what i he's behind the polls in ohio. >> you want to talk -- >> and in north carolina and in florida. it's why he's struggling in states in the rust belt. it's why he's behind in michigan

and wisconsin. people don't understand why he had a swiss bank account and he isn't able to explain it. >> the american people are concerned about their bank accounts. too many americans are struggling saying i don't have enough money to uh pay the bills. i'm worried about the future. >> well -- >> what's going on is a distraction. >> then mitt romney should explain why he's opposed. >> why don't you explain why stimulus money is going over seas? >> why he's opposed to extending tax breaks for the middle class. >> we'll have that debate. >> because there are 800,000 small businesses -- >> i hate to end this lovefest. we'll have that debate or we have had the debate elsewhere in the show. brad woodhouse, sean spicer. gentlemen as always it is a pleasure to have you on the show. all right, folks. if you want more proof that t taxing the most successful earners will backfire a new report says wealthy maryland residents may be moving out due to recent tax hikes.

robert frank joins us with the details. good evening. >> if you want to look at what happens when you tax the wealthy, consider the state of maryland. that state imposed a millionaire tax in 2007 for those making more than a million a year. the rate went to 6.25%. the goal, of course, was to help balance the budget and avoid painful budget cuts. what happened? lo and behold a new study from change maryland said 31,000 residents left maryland during the millionaire tax. most went to virginia and took 390 million in tax revenues with them. in total, maryland lost $1.7 billion in tax revenue during this period. the state still has a billion dollar budget deficit, even after all the taxes. larry hogan of change maryland told me people of maryland have had enough and they are voting with their feet. not all the people who moved

were top earners and some high earners moved in. they still have the highest density thanks in part to all the wealth created in nearby washington, d.c. remember that the 1% pays 40% of the income taxes in many states, losing the golden geese could prove more costly than many states realize. >> i think that's exactly right. how about texas, california, tennessee? no income tax and they are profitable. >> a lot of them went to virginia where the tax arbitrage was that thin. people make big decisions on where to live on small differences in taxes. so states say it's just a percent or two. people make major decisions based on 1%. the difference between maryland and virginia. these things matter. >> if we raise the high end taxes will they all go to switzerland or places like that? >> last year 1800 americans

renounced their citizenship including denise rich, to move to a lower tax country. this is not unheard of on a national level. it's happening more than ever before. >> taxes matter. thank you very much for the report. programming note for wednesday, by the way, i will be live from washington with very special guest, former federal reserve chair alan greenspan and congressman eric cantor. up next tonight, republicans accuse democrats of crossing the line on invasive campaign videos. they are called trackers. but they're more like stalkers, posting personal video on the internet for all to say. the full story when we come back. you know what i love about this country?

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here now is cnbc contributor robert costa of the national review. what's this all about? i thought it was okay for them to follow you around but not into your living room. >> it's creepy. i spent an hour on youtube looking at the videos done by democrats. you see the democrat ic party operatives using cameras to take silent videos of their homes, especially for wealthy candidates. i guess trying to show voters about wealthy congressman and trying to portray them as out of touch. >> we called the democratic national committee to get a response. the national congressional committee to get an explanation. they have not returned our calls. let me talk more about this. hiding in bushes and taking videos of, what, living rooms, kitchens, families actually going about their business? is that what's going on?

it does cross the line into a new low. >> i spent my life on the campaign trail. i was in new hampshire this weekend. i see it everywhere. six years ago remember george alan lost his senate seat because he was caught saying macacca. that was a new incident back then. now in 2012 the bloggers with video cameras are everywhere. republicans are also tracking democratic candidates but with the politico story it says democratic operatives taking it to the next level. hiding in bushes. they have candidates' spouses scared. the culture of politics is so combative on television and capitol hill and back in the districts. you have candidates running scared. >> all right. we'll leave it there. it's a grotesque report. i don't know. seems like you can't stop it anymore. politics run wild. thank you. up next tonight on "kudlow" president obama uses full frontal class warfare. he'll do anything to distract us

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welcome back to "the kudlow report." so, president obama seems to love distractions. today's shift from friday's miserable jobs report to a call for the extension of the bush era tax cuts except for the most successful earners seems to be no exception. is this full frontal class warfare campaign strategy really going to win favor with voters? here we have mark penn from 1996 bill clinton campaign adviser. ron kristy former special assistant to president george w. bush and james gilmore former rnc chairman and former virginia governor. ron kristy, is this a distraction? obama just wants to get away from the jobs report and away from the lousy economic data so now he's going into tax cuts and class warfare? >> this is absolutely a distraction. the american people were disheartened to see the terrible

jobs report friday. 80,000 jobs created in the last month won't get it done when we have 156,000 people entering the work force every month. the president came out with the plan. he's playing to the base but he knows this is not going to pass the house of representatives where revenue must originate. he knows it won't pass the senate where you have a number of senators saying we should have a tax holiday for those making up to a million dollars it's class warfare and politics. >> i'm not sure. mark penn, i want to ask you about this business about a distraction. changing the message which is what your friends greenburg and doug shoen and james carville said. the wall street journal is reporting that senator harry reid said there will be a vote on obama's tax proposal. if there will be a vote to exclude the rich people, that will be an amendment. my question is if there is an amendment might there be five or six democrats who will vote for

full extension? i want to go to the full monte here. they will go for full extension and not give the president what he wants? >> there might be defections. i wouldn't count on it. this was a shrewd move by the president. it's not a distraction. the president is saying for 95% of the taxpayers and he's going to put back two-thirds of the bush tax cuts. i would think they would be cheering and endorsing tax cuts. of course the president now has a strong message if he kboes on the stump or in a debate toe to toe with romney. >> former governor of virginia. you ran the republican national committee. senator tester up for re-election. claire mchas kel, bill nelson, former astronaut, up for re-election. joe mansion said he's going to have no part of this.

take that group. if there is an amendment they might vote with the republicans to extend the full tax cut. what do you think? >> that's right. one of the virginia senators, jim webb said the same thing. he's not going to get it. but he ought not to get it. this is a distraction. it's a distraction away from a terrible recovery that's not going on the way it is supposed to go. if you're rcoming out of a recovery you should not be making 80,000. you should be way up there. investment causes that. this is fine for people getting the break. for everybody else this is a distraction and a way to tamp down investment. jobs are good for the middle class, not the tax cut. >> come on, guys. cutting taxes for 95% is not a

distraction. you guys should be cheering it saying the obama is acting on the jobs report and coming forward with the tax plan of one year tax cut for americans. >> that point is okay, larry. >> that's just ludicrous. >> that part is okay. the problem is he's allowing tax increases to go forward on everybody else. >> by 5%. >> he's preventing investment. >> let me agree with the governor. this is right. what the democrats fail to realize and tell the american people is we need additional revenue in this country. we'll get it if we reform the tax code. president obama ignored his own pledge to cut the deficit in half. he ignored the commission that wanted to have substantive changes about the way we address entitlement issues in this country. to suggest that republicans are getting everything they want is

false. >> look, the president made a solid statement to continue two-thirds of the bush tax cuts. he's endorsing it and you don't want to meet the president on anything. >> you had senator chuck schumer from new york state suggest perhaps 250,000 dollars is not looking at people who are very wealthy or perhaps a firefighter and maybe a teacher. that's not a lot of money. the democrats are more interested in class war fare. >> let me add to it. the fact is if you do this policy, stop people from investing. investment creates jobs. >> that's ludicrous also. >> jobs go to the middle class. this is an effort to buy the middle class, divide people one from another. it's all politics. >> this is bringing back 160 billion into the economy. you guys should be cheering it. what's the problem? >> hey, mark. i'm okay with the part they are doing. it's the part they are not doing

that's the problem. they are preventing investment. people who have small businesses who can add jobs, who can do something to do something for the middle class. >> 96% of people are covered. >> the wall street journal disagrees. i will let you get back in, ron. sp wall street journal said roughly 53% of small business income will be hit by the higher tax rate. we have seen data like that before. ron, that's a problem. in other words now you have successful investors and entrepreneurs and successful small business owners. a million dollars is not a lot of money. $250,000 is not a lot of money for a small business owner. that person will be hit and will lose jobs as a result. >> that's exactly right. being a constituent from virginia there is a lot of economic uncertainty now.

there is a lot of uncertainty about is this the climate i will invest, that i want to hire additional employees? is this the climate i want to take a risk given the fact that the democrats want to raise taxes on the people. >> the president is creating an improved economic environment here by cutting taxes substantially, encouraging investment, encouraging job creation. he's dangerously going down the slippery slope of endorsing tax cuts. >> mark. >> this is just an example of politics as usual that you guys are not cheering today's smart political move by the president. >> cutting the taxes for folks is fine. the problem is he's raising taxes on everybody else. he's raising taxes on business people who can create jobs. he's raising taxes on people who can afford to invest. h's going to prevent the creation of jobs. it is jobs for the middle class that helps. not trying to buy votes with this type of ploy. >> the trickle down economic theory you are trying to

recycle, especially when the president moved on this. >> i want to go to something you said and it's the wrong way to go. you said it is a smart political move. we are not interested in smart political moves by the president. we are interested in moves that will restart the economic engine in this country. governor gilmore is right. >> hear, hear. >> we are looking at people who will be hurt the most. >> i think -- >> this is a political campaign. romney hasn't shown anything. who knows what his tax position is? where is his tax plan? what is he endorsing other than bush tax cuts? this isn't going to move the economy forward. wf had the bush tax cuts for a long time. they haven't moved the economy pardon. >> governor romney has come forward with a plan that's very good toward growth. it will charge less money to corporations, get people opportunities to create jobs. it's going to reduce some taxes on investment. it will create an opportunity to go forward and do something. i can't emphasize too much. jobs has to be the goal. that's good for the middle class. not a political ploy.

>> exactly right. >> you're all very lively tonight and i appreciate it. thank you all. >> thanks, larry. >> thanks for watching me. i'll say this. lower marginal tax rates on the supply side will do a lot for helping the economy as they did in the '80s, '90s and mid 2000s when they were tried. what's wrong with trying again, president obama? give it a shot. you know what i love about this country? trick question. i love everything about this country! including prilosec otc. you know one pill each morning treats your frequent heartburn so you can enjoy all this great land of ours has to offer like demolition derbies. and drive thru weddings. so if you're one of those people who gets heartburn and then treats day after day, block the acid with prilosec otc

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