re-airing the same time on saturdays and sundays, check out this week's edition of barron's.com don't forget to follow us on twitter at barron's online will see you next week 9:00 p.m. eastern on "barron's roundtable". ♪ >> hello everyone welcome to "kudlow" i am larry kudlow i want to begin by going back to yesterday's budget speech by president joe biden, you may recall on eight separate occasions mr. biden referred to pay their fair share, he just kept repeating it. some left-wing poster probably told him it'll play well in progressive precincts.

he is always blaming businesses and blaming wealthy successful individuals. it's a big lie not just a question here of cognitive dissidents just like any left-wing propaganda. if you say something enough it might become true, again this goes way beyond any cognitive dissidents, it is simply a big lie. and i'm quite tired of it. let's look at some facts, this is from the irs, the nonpartisan tax foundation, c.b.o., joint tax committee and so forth, first up the united states has the most progressive tax system in the world, that according to an oecd study done several years

ago, progressives, progressive means the upper in pays far more than the low-end, let me give you some facts, according to the irs data from 2018 the most recent numbers available the top 1% of american taxpayers pay $616 billion which is 40% of all of the income taxes paid, let's stop right there the top 1% pays 40% of the income taxes. and here's one of that factoid, the top 1% earned only 21% of the income but paid 40% of the income tax. one could say that is twice their fair share, but there is more, the entire bottom half of taxpayers who earned 11.6% of

income paid a tiny 2.9% of the income tax. they are underpaying i suppose, but the key point, the top and is paying more than their fair share, the irs factoids, some more facts about this. six in ten households received more indirect government benefits then they pay and federal taxes. another fact, over 53 million low and middle income folks pay no income taxes because of the refundable tax credit which are a form of federal spending through the tax code. another fact according to c.b.o. data for 2017 the latest, the lowest top of the income groups actually had a negative 10.9%

income tax, negative tax, the second lowest had a negative tax of 1% that means simply they received more benefits from the government then they paid in taxes, if that isn't progressives i don't know what is, we have a more progressive tax in this country than all of the so-called socialist and the top earners. they don't pay their fair share propagated by mr. biden time and time again yesterday and i'm sorry it's a big lie. it is a big lie based on facts. here's some more facts the u.s. tax system is essentially dependent on american business. american business pays or remits 93% of the nation's taxes.

and you understand companies and corporations don't pay taxes and are great businesses biden tax time and time again. as far as a trump tax cuts and biden charging the big deficits this c.b.o. latest estimate shows that corporate tax revenue projected by the c.b.o. is now estimated to match the pretax cut level by 2023, two years from now. in other words right on schedule. we always knew this was an initial dip in revenues and initial rise in the deficit from the tax cut. but then as the tax cut generates new incentives for faster growth and lower unemployment and higher wages than the revenues catch up

quickly. that is, they pay for themselves, tax avoidance also declines. also in this story there might have been a slight delay in the revenue estimates because of the pandemic shut down the economy but in 2021 the recovery and corporate profits and corporate taxes is back on schedule were having a whirring recovery and this is something the president biden will not tell you. and he wants to blame businesses don't pay taxes and they don't pay their fair share of taxes, nonsense. it is part of the big lie. i will say to you no matter how many times he and his allies repeat this man struck pay your fair share, that is never going to square with these very inconvenient facts, what biden did yesterday is pure left-wing progressive woke propaganda and all add to this, his agenda is

totally transparent. he wants a whole new generation of big spending welfare plans. and he wants to finance by taxing businesses, something but wealth and income redistribution. that's all it is is redistribution, he has no interest in economic growth the own estimates from the omb budget shows growth stagnation less than 2% in the out years. he and his people know full well the study after study shows raising the corporate tax will lower wages, will depress the economy, indeed 70% of the economic consequences was a corporate tax hike will fall on the blue-collar middle-class, that is the backbone of the economy and the backbone of our workforce. so signaling out small

businesses of taxes is an effort to crush the heartbeat of the american economy, it makes no sense at all. but there is more, the welfare plans, he's talking about 12 weeks of paid family leave that will cost $500 billion by the way and maybe more than that being underscored. they want to increase subsidies for dependent care and evermore monthly payments for the child tax credit which is a refundable tax credit putting cash in their pockets, boosting medicare and medicaid and boosting obamacare all the european entitlements will move us further down the road to certain. there are no work requirements this is complete government

dependency and this strikes at the heart of america's social fabric. in many ways this nonwork or even anti-work welfare dependency is even worse than raising taxes. i say that as a supply cider, it's not because of the evidence in debt because of these levels raise my eyebrows, because of the transformation of the culture wants to undermine free enterprise and at the triumph of woke overwork in the nation social and economic history, this is armageddon, it really is but of course for me the solution is very simple save america, kill the bill.

save america, kill the bill. that is my rift this evening. were gonna go back to the woke budget topics in the next segment will have alabama senator buffers up we need another look of afghanistan we need to tackle the afghanistan withdrawal, this time this evening with the china angle and important china angle, not surprisingly america's afghan defeat is going to enjoy the hearts of president xi and in particular red china has insight on taiwan the great american ally and by the by the semi conductor senator of the whole world read senator would like to do the taiwan what he did the hong kong destroy their freedom. and take over their country and their system. by the way take over their market system.

we bring in my great friend and former trump colic distinguish national security advisor robert o'brien, the best of the best. along with alex gray posted a powerful op-ed in the wall street journal a few days ago, how did to turn china from invading taiwan, welcome back, how do we deter china from taking over taiwan, the chinese are probably licking their chops after this afghan debacle. >> that's a great question but the one thing i want to say be back in the private sector i can tell you after listening to your monologue how badly i wish you were running the economy like you were in the lighthouse the last couple of years. we need free men, free women and free markets back. it ties into national security, you know and you preach this economic security and national security. when we are prosperous and have a thriving recovery and when were doing well we can afford

the minimum of armed forces with the best platforms and deter the chinese and keep them from doing that align activity whether with taiwan or anyone else. kudos on that monologue that was terrific. larry: is a great point by the way i learned it years ago from reagan strong at home, strong abroad, week at home, we could brought. you want to put significant resources into taiwan and rightly so we have to stop the chinese there and you talk about a porcupine strategy, can you walk us through the porcupine strategy. >> the people of taiwan watch what happened in hong kong and what happened to hong kong when president xi and his communist colleagues distinguish democracy it gave white to the one country to system that you could maintain your freedoms but be part of communist china and the people of taiwan do not want it and they will not vote for and

they will not voluntarily become part of the communist party of china in their empire so what we said we should not pay for the taiwanese are profitable and are thrifty and they work hard and they have a great economy they can pay for themselves but they need to turn themselves into a porcupine and they need to have see mining capability and antiship bills and they need to start gun clause like they did in the european countries and a territorial reserve that happened in the baltic states and poland and get gun ownerships so the chinese believe that they can invade taiwan even if they get past the beaches will know in every town, village and city and somebody with an ak-47 shooting at them we need to get them stinger missiles so they can vacate the big advantage of helicopters and the chinese have and prevent the airborne helicopter assault on the island, those are things

that the taiwanese need to do they can pay for themselves, they have the money to do it it's good for taiwan in american defense contractor second supply the goods and when they order them we need to make sure there at the top of the customer list a lot of these items are popular and we need to move them up on the customer list and make sure they get delivered to taiwan soon so they could deter china from bullying them and maintain the democracy which is a tremendous transformation of taiwan from an authoritarian country 3040 years ago to the vibrant democracy is one of the greatest success stories for people believing in freedom around the world. larry: in your op-ed you talk about how important it is to in the narrative of decline which communist china is trying to spread the narrative of decline i can't think of anything more important than that. >> you are right what happened after the catastrophic withdrawal after afghanistan we left a lot of green card holders and friends behind the chinese

took that using the global times the chinese party mouthpiece and they wrote an op-ed to the capital taiwan and they said look a couple, this is your future, this is what is going to look like after we invade and the americans abated you, then we've got to reassert american leadership and show our friends and our allies were with them but deter the russians, the chinese, deter the iranians that will take real leadership from this country and we can do it we are selling in one a1 abrams tanks to taiwan and upgrading the f-16 fleet those are important but taiwan needs to do some of the anti-access area of denial type weapon systems that the chinese avoid to make sure the porcupine doesn't get eaten by the alliance. larry: i love the porcupine metaphor. two quick wins, are you in favor of selling australia the nuclear

submarines in the papers i guess the french are a little out of sorts about that, i don't know we can make it up to them or maybe we won't but selling nuclear subs to australia, do you favor that? >> is a great idea and we have an overlapping treaty relationship going back many, many years with the australians and the brits that united front of australia, the uk and the u.s. stated up to the chinese and indo pacific and giving the australians the best weapon system that they can and that they need so they can deploy and protect themselves and also work in concert to protect democracy in the region it is very important also something remember the stories of america's going to be back diplomatically and will get along well with our european allies. i saw my friend and your friend of the french ambassador being withdrawn to paris and the french are unhappy because we did this deal without talking to them in french is an important part they were our first ally

and we work with them in africa their critical ally in the indo pacific the french polynesian, we need france alongside with us whether to challenge the chinese with huawei and their 5g plan to be with us in the indo pacific. how this happened without smoothing things over and getting along with her ally france is a little astonishing and as you know president trump got along very well with the prime minister johnson in either or situation he got along with everybody. i hope we will make some amends to the french because they're an important country in our first ally and their democracy and we need their help in the fight against china as well. larry: even in my low-level i love him we spent a lot of time together. still the best kitchen in the best meal on ambassadors row.

one last question what is your thought you were the national security advisor when general milley, now there saying this was normal discussions with his chinese general counterpart, did he tell you about this did you know general milley was doing that, do you have a thought on that? >> general milley is a patriot but i learned about these calls over the last couple of days from a woodward book, it came from bob woodward i don't know if we should give it credit or not i think general milley said he will tell his side of the story to congress but we need to wait and see what the general has to say to the congress and see how it plays out i will reserve judgment until we see what happens. larry: i told the story on air and elsewhere when he was swearing in your law partners daughter and what a great patriotic speech he gave we were in roosevelt and i happen to wonder and looking for you, this

general milley story is disillusioning to me i hope there is something on his side but it's very disillusioning. we appreciate it very much, and great op-ed the porcupine strategy to hold onto taiwan. up next on "kudlow" the pentagon admits the biden drone strike killed ten civilians including seven children, and failed to kill any of the isis k terrorist, that is a problem and we'll talk about it among other things with tommy tuberville he will join us next marks more coming. don't mix fox business primetime lineup starts monday september 20 at 8:00 p.m. this monday and you can catch "kudlow" every day as usual monday through friday at 4:00 p.m. we will be right here on fox business. for some crazy reason you cannot catch is that for for heaven sakes dvr the show so you will never miss a thing.

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strike. moreover, we now assess that it is unlikely ten civilians including two children were killedic it's unlikely the vehicle and those who died were associated with isis k or direct threat to u.s. forces. i offer my profound condolences to the family and friends of those who were killed. larry: tough story joining us now to kick it around and other things senator tommy tuberville of alabama i believe is on the senate armed services committee. senator turberville has always served, thank you for coming on. you're a petri i'm a patriot general mckenzie is a patriot, the intel was wrong but i want to raise a different point with you. i don't see how we can conduct the drones over the horizon jet fighter attacks on the terrorist and afghanistan if the

intelligence. i think that's going to be a big problem goingng forward. when the taliban terrorist in their illness behave, i don't know how you do it without anybody on the ground, what do you think about this. >> you hit it right on the head militaryt run a without surveillance you have to have intel on the ground, they have to be there 24 hours a day and it's unfortunate, this is another chapter in the book of how not to retreat from a terrorist country in running the skeleton crew and making a guess, this is obviously a guess that there was a bomb in the car or the house, whatever they bombed you have to feel for the people and feel free general mckenzie to say that joe biden should had to go on tv and say this himself and not left into a general, this is a political

decision, not a military decision whether they bombed the car or whether we came out of y afghanistan, you cannot run a war on the skeleton crew and you don't take your army out before you get everybody else out or we wouldn't have got anybody killed, it would've come out a lot better if we l would've done it theak right way. larry: you make a really good point, it is politicalal but tre and goes to the military, our great military basically biden and his top civilian aid lincoln and sullivan, they let the military under the bus that's what they've done these were decisions made by the oval office in the commander-in-chief into the whole withdrawalwa catastrophe including this wrinkle were seven children were killed, an awful story so we hae out there and were moving to the third level that's another explaining this, that is unacceptable really

unacceptable. you are right. >> if you look at this this would've been a couple of weekse since i happen, it's been out there, the truth has been there we are just now hearing this should've been out earlier, unfortunately we did not get that information but again it is a sad tale and we still have americans behind enemy lines we still have people there we have to get out and it's unfortunate that joe biden is trying to flip the page to a vaccine mandate and all other things other than the story at hand. larry: let me switch, besides the vaccine the speech yesterday, the rich don't pay fair share which is utter nonsense i had a bunch of numbers, the wealthiest taxpayers of the top 1% paying 40% of the taxes they only make 20% of the income and pay 40% of the taxes the bottom half doesn't pay taxes, 2%, the

bottom two quintiles have a negative income tax receive more government benefits than they pay out andno income taxes. even with all of that and i'm a supply-side or and i focus on incentives and taxes but the thing that's troubling all of this entitlement and welfare spending with no work requirements or education requirements this is like a plan to take people out of work and depend on the federal government is like a socialist lie although were seen right through it that's what troubles me as much or more than the tax hikes. larry: and bothers all of us, you know this once you start down these entitlements you cannot ever take them back it's impossible and there are some thingsut out there but for three and half trillion dollars as we speak, really is more than three and half trillion it'll be 5 trillion, you put all this

together and nobody wants to go back to work were in alabama right now where the 11th most labor short state and the country and were try to get people to go back to work and revving businesses go out of business but there is no incentives from joe biden is all about giving instead of incentivizing people to go to work and make a plan, do the things are supposed to do to help the country get going again but all these handouts are going to put asunder inflation and skyhigh is going to get worse just keep the taxing plan that you and president trump put in, keep us on the same direction and if we wouldbi do that in joe biden would listen to his buddies about getting everything away and big government socialism state then we would be much, much better off. larry: i newt gingrich calls a g government socialism versus free enterprise capitalism, i love

that but senator tuberville no work requirements and no educationen requirements but the biden team in the biden plan wants to keep people down, wants to keep them down, no opportunity ever. >> that is their plan, i know you heard this too, he tried to tell people he was a capitalist. whatever he's doing right now is not capitalism he needs to read the book 101 capitalism it's much more like socialism, i told everybody this you put all this money into these bills, if you're gonna do anything we have to kickstart our education and get rid of the crt and get back to teaching reading, writing, math, we have to get back ine or schools and do the things to give them an opportunity are education is going down the drain and goingfa down fast i kw they're trying to put a little bit of money in education but

everything else is about incentivizing people don't worry about education and work we will take care of you and it's not work. larry: well senator tuberville save america, killed the bill, thank you for coming on we appreciate it very much. good luck to you. coming up on "kudlow", save america, killed the bill, i'm working with a whole bunch of folks, america first policy institute and steve moore and steve forbes, my pal linda, good story in the washington post. this is save america coalition. kill the bill, it's really simple, we can talkch about it with charlie hurt our political analyst with the washington times. i am larry kudlow we'll be right i am larry kudlow we'll be right back. welcome to allstate.

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larry: yup, kill the bill, save america, that's larry: killed the bill, save america that is what our coalition group is trying to do, can we succeed, joining us, charlie hurt fox news contributor washington times op-ed editor, we have this great group together, american first policy institute, freedom works, unleash prosperity, all kinds of good people that you know were gonna fight this thing in mid-september you think we can beat it you think that's trealistic. >> without a doubt my favorite thing about the group of people that we've got together is a number of you that have actually created jobs unlike joe biden who has never created a single ndit end tndhereo it

ry wveel a tl a a a probl p thog has ounownowhe t o thi tha inrats aratstslicanslicans gether othersth serpes her h h h monenf, it depdsn w you definineeeetory yhtouht llllut i guara wl settle oe osomething ang ann thing thagg i itriltron u iu iiv yiv agoiv a a atrillios people's heads would've exploded. now were talking about three and half trillion dollar program t like this it's truly insane. larry: it isn't really three and a half it's maybe five or five and a half they are phony with five year program which you know will be ten years and you also know will be permanent, to your

point, i think it might get slim down i i think it will get slim down but i don't think slim down mis good. here's the thing i mentioned this earlier this may surprise you i am a devoted supply-side or and i focus on taxes and incentives and art laffer's curve, the more i look at this thing and i worry that it all pass all spending and welfare spending incomplete welfare dependency, and no work requirement in anything and no education requirements and no work requirements, i said this several times on the show i'm going to have to keep saying it that will keep people down on the farm. that is road to serve them if you asked me that is the part that worries me. >> it always reminds me of ronald reagan about the

dangerous words in the english language high-end from the federal government here to help you and anybody who thinks that is help it is not help and when you look at the whole business paying people not to work and the damage that has done if you go down main street ind anytown in america and you see the small places that are struggling to hire people and they cannot hire people and because of these policies in joe biden put into place and they wanted double, triple quadruple down on it and even more impossible for these to make an honest living and you can pay people to stay at home and wreck their lives or you can create anhe atmosphere where they're able to take care of themselves as they take care of their family and the difference between those is nightay and day and it's a devastating fate that we find ourselves in that you haveve a party and administratin that is completely committed to

the idea of welfare in this day and age be when they want to transform the culture. that is a part, they're gonna raise the corporate tax rate and i'll warn you you're gonna lose jobs and middle income people will get hurt with lower wages and that's bad enough but this is been long-lasting keeping people on the farm, road to surfing is no good and they're doing it gingrich caused a big government socialism, he's right. in the last when he producers are screaming at me. is joe cinema tougher than joe manchin in your view. >> give a couple of people another in a good spot because they can negotiate a lot of goodies that they want because i get to go home to their state but the problem at the end of the day i think both of them will be foror sale at the end of

the day that's the way it works in congress. larry: i can't be bought but i can occasionally bete rented. >> exactly. larry: charlie hurt washington times will see you soon up next on "kudlow" how is mr. biden and reward the drug industry which created vaccines under operation warp speed and save the country. he is punishing them. we'll talk about this with jason smith, be right back. ♪ ♪ ♪ ♪ ♪ ♪ ♪ security at your fingertips. control feels good. chase. make more of what's yours. (struggling vehicle sounds) think premium can't be capable?

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you booked a cozy vrbo mountain cabin. [laughs] with a kitchen where everyone can chef. [laughs] a family room where you can let your hair down. and a backyard that is a tree-lined living room. but the thing they'll remember forever? watching the game together once again. ♪♪ the time for getting back together is now. ♪♪ find it on vrbo. larry: yeah, so drug companies saved america from larry: drug company saved america from the pandemic, operation warp speed, of course, president biden is punishing them, their businesses terrible thing to do, congressman jason

smith, we will have enough time to do it justice but it's kind of amazing we owe the drug companies we owe them some things in the thank you notee' that medicaid is going to take over the price system while price control and we will tied drug prices to a bunch of socialist european countries, how is that for same things. this administration is pretty good at rewarding their allies and donors when it comes to the three and half trying another reconciliation bill. you would think that they would use logic but unfortunately whether trying to push with provision in thiss bill they're trying to make it in fact where government is more involved, every american hates the cost of high prescription drugs but they also know if government gets involved it's only going to get

worse will have a limited supply of what we need and less research to find a cure. it is part of the biden way it's like more government and your healthcare, more government in your job by virtually making sure that everyone is staying independent government and not working. larry: they want to pump up government dependency including increases in medicare and medicaid andhe obamacare but the thing is, real quick if you look at the consumer price index they had two categories one is prescription drugs, that may not include all of the six per mental drugs, i get that. but prescription drugs over the 12 months of august minus 2.7% those prices have been falling steadily for years and overall drugs which includes a generics which trump the regulated, those are down 2.4%, i'm just saying

this is abl solution looking for problem but in terms of advanced technology, does the taxes and price control and lower profits stop innovation that will put these guys out of business they will not take risks does that mean rent the bottom. >> everybody knows us. innovation, we need more innovation, were in a pandemic, we need innovation, we just talk operation warp speed that worked incredible under the trump administration and with your guidance that's what we need going forward, we don't need limitation but as we know everything that joe biden touches turns into a crisis whether the border crisis or inflation crisis or afghanistan crisis or the energy crisis, it's all look crisis that joe biden is touching. larry: i t see one number that's

going to be 700 billion worth of savings from the price controls, the wall street editorial, they said 500 billion, they're never going to achieve that because they won't produce. if you put price control on, what happens you pull back production you're not making any money you're ready to return those down, don't you know this already, price control we want to beat belgium, no, doar we wat to be bulgaria or something like that before the berlin wall came down, i don't get it. >> you were talking just before i came on about the three and half trillion dollar bill trying to get it back in tax, democrats are helping us, yesterday alone three democrats voted in energy and commerce committee to strike out this provision and that cut a 700 billion-dollar hold and what nancy pelosi is trying to push through, this even shows thee democrats may have only ben

three but democrats are adamantly opposed to the socialist takeover in our healthcare, hopefully the largest tax increase bill in the nation. larry: are you y are praying man jason smith, we need deep meditation i'm a prayer. >> even better, save america, killed the bill, jason smith thank you very much for coming up on "kudlow" over 10000 migrants are stuck at the border under this bridge, the faa said we cannot look at it, now they reversed the decision so were allowed to look at it but the texas cops gave fox news a piece of it, this is a bad story, were gonna have steve miller up next to critique this, drones, faa, hide the truth, pay their fair share, where does it into.

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(man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches may have insulin resistance. to learn how to reverse insulin resistance and lose weight effectively, go online to golo.com. once again, that's golo.com. larry: more catastrophes at the southern border, joining us now to talk about it, steven miller, my great pal, former seni larry: more catastrophe at the southern border stephen miller, welcome back, let me get this

right now we have this haitian catastrophe 10000 haitian illegal immigrants under a bridge in the government and the fda would not let us see it, they stop the drones from going they said it won't happen because a haida. what do you make of that. >> you really have to be a postmodernist to try to solve by blocking out the coverage of the crisis. the crisis is still there d if u knocked out fox's drone. unfortunately we have a helicopter so we could see what was going on and i heard you say the faa reversed themselves but this is insane you find out there's a crisis that we've neverr seen before no one has seen anything like this as longh as we patted country and your first phone call is get the drones out of the sky, this is crazy. larry: we have over 200,000 inpeople coming across the bordr in august, 200,000 common across

in july so that may be a new benchmark, what i see generically i raise this in the top of the show with biden budget and tax speech, i call it the big lie he says people don't pay their fair share and i have tons of examples why they do it's like the border crisis the tribe did not let us see you but we know which true, inconvenient facts really matter this is the big lie of the administration. >> what you're describing is how soviet communism worked and i'm not the first one toat make this observation but what they did so oppressive is that people were oppressive is that people were forced to play along with t

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larry: spending, taxing, immigr larry: spending, taxiing and immigration crisis, now. elizabeth: we have news coming elizabeth: border officials may be forced to shut down. to redirect officials of illegal immigrants of this country has never seen before, thousands of a running border checkpoints, border patrol, local townsr and hospitals, this is 5 - 6 times the last few caravans, the borders at a breaking point. , ts last year's caravan, the border