when you sign up now. betmgm. download and bet today. larry: hello, folks. welcome to kudlow, i'm l arry kudlow. so will the republican

senate grow a backbone and support president trump's cabinet nominees and his tax cuts? we have senator cruz, and all that coming up in the show. we have senators randy paul and ron johnson. and first up fox news aishah hasnie is live on capitol hill, what did president trump actually say to the senators? a lot of weird stuff in media. >> he called in to closed-door policy meeting that senate republicans were having with house speaker mike johnson he wanted to fire them up and remind them of his mandate, all battle ground states he won, he. s to get his work his agenda done as quickly as possible. and i'm told s senate republicans came out of meeting with a two-prong reconciliation plan to try to tackle the border and

energy in first 30 days. >> he is ready to go, can he wants to us ready to go, he thinks -- celebrating some wins and difficult states like pennsylvania, and ohio. and so, we're excited to hear from him, he gave us a few chuckles on the way too. reporter: so pressure on. meanwhile elon musk and vivek ramaswamy are expected to the hill thursday. to meet with senator joni ernst, they will talk about how to cut a trillion dollars from the federal government in just two years. trump's attorney general nominee pam bondi is back on the hill with meetings as is defense secretary nominee pete hegseth, he has been getting so much attention, the media scrums that are following him so bigot hill because of the allegations of sexual assault he is facing and he my sergeant

at arms has limited number of press that can follow him around, it is so chaotic here on the hill. larry: aishah, what talk about tax cuts, i am interested, i hear things that i don't top hear. i will riff on it. but they will put tax cuts off until back-end of the year that could be a big problem, he won on the economy could, we're hoping for a repeat of the blue collar bl boom and et cetera, what do you know about that. reporter: from what i hear sounds they want to tackle who is easiest first, and what they want to put off what they can. with tax cuts, i believe they think they could get to it later, not something they need to tackle immediately. it sounds like they are trying to focus on whatever they can get across the financial line quickly, to

give him victories out of the gate. larry: all right, not sure i agree with that but, aishah hasnie we appreciate it. so, trump tax cuts 2.0 can't wait. that is the subject of the riff. during trump years, and first presidential term, real average weekly wages, take home pay, rose over 9%. during the biden years, take home play plunged fl 3. 6% for his 2er7 term, median household income in trump years rose 77,000. that is precovid. during mr. biden's term, median income rose only 1 p1,000, the numbers take home pay and median income, have a lot to do with

mr. trump's landslide election victory. these were kitchen table issues for mr. trump's working class majority that spanned all races cut into democrat former coalition, economy ranked first in every poll, working folks losing money and they can't afford gasoline or electricity or new cars or new homes, color plays no role it is about the economy, more than enough people remember how good they had it during the trump years and doorly bur -- during the biden-harris years, sooner president trump can restore the blue collar boom the stronger his political position will be in congress and country, i am concerned that new administration may not start their legislative agenda with tax cuts we hear there will be two reconciliation

bills first tackling energy defense, and border. secret authorize expires tax cuts later in the year, i don't think that tax cuts should wait, just as i don't think that mr. trump's working class coalition thinks that d tax cuts should wait, they want better take home pay and lower inflation. bring down gr down gasoline and in favor of builds the wal wall to close the border, and we'll need a stronger and more efficient pentagon. but leaving tax cuts in the dust for some later date, not strike me as a good idea in economic or political terms, look, why not one large scale re reconciliation bill, this was being pros moted by

sstevesca scalise and others, push boundaries of fiscal policy, tomorrow treasury secretary designate, scott bessent's 333 formula is very good. reduce deficit to 3% or less of gdp and add 3 million more barrels a day tax cuts will help enormously to get us above 3 percent growth, and reignite the blue collar boom and people should be less ulistening to senator mike crapo said that cost of ridging lake to be measures -- legislation should be measured against current policy. he noted on this show, in terms of the scoring protocols by the

congressional budget was on the, if you let spending go on forever thereby increasing every year, nobody scores that as a higher deficit. for some reason, if you let tax cuts go on forever, they want to score that as a huge deficit increaser, maybe when a static score board, a tax hike of $4 trillion that is nonsense, if spending is current policy tax cuts, should b current policy as well. listen. >> let me tell you, under the spending protocol that we use, and scoring protocols,i extending current spending does not score as at deficit. which is ridiculous. larry: that is unbelievable. >> there. one very smart fellow.

the same tax cuts from trump 1.0 wielded a enormous revenue windfall, corporate income tax alone has produced bitter than 30% higher revenues than predicted by cbo in 2016, and top 1% of taxpayers may more and more of total share,. that is. the 1099 small business tax deduction, and small business folks with their llc's pay individual income taxes. steve forbes is right. reducing capital gains t tax will generate a massive revenue windfall just as it

has in the past. sooner trump 2.0 tax cuts can get moving in congress, happier those working class trump voters will be. and the faster the blue collar boom will reignite. that is tonight's riff. all right. despite all odds and earlier reports we have joining us, great texas senator mr. ted cruz, thank you senator cruz, i was never worried about that, producers get nervous. so, we have a bunch of things to talk about. you are right guy. i just want to start with this issue, now surfacing, i heard rumors about this, i don't know a week or two ago, now we have two reconciliation bills, the first one will have energy i guess border and defense. and then we'll get to the tax cuts later on. in the back-end of the year. now i don't know what your view it, we could debate

it. but i don't like it. i think tax cuts 2.0 should go on table right away and by the way, i don't know if you heard, the clip we played from senator mike crcrapo, why is it permanent spending increases are never scored adder dideficit increasers. -- should not be scored add anything it p permanent policy, you those are my beefs i am overheated about it. >> larry, you are a man of strong opinions and almost always right. in terms of how congressing preside, likely will be way you laid out, with a series of different reconciliation bills, and really the decision in terms of timing is coming from president trump and the trump team, we

have had morning senate republicans had a policy retreat spending 5 hours together talking how to deliver on our policies. we have a republican president, and senate and house, and we have to resporoll up off sleeves and go to work, view of most senate republicans if president preferred to focus first on border then the tax cuts. we'll follow the president's guidance terms of order of priority, i think that thinks is when secures the bored we're see january 20 issues of executive order reversing disastrous action to joe biden took that caused it crisis, the feeling is we could pass legislation providing funding to recsu secure

border and relatively rapid win. in terps of tax cuts, i am in with you, i want to see tax cuts bigger and boulder, i think that part of reason that trump campaign opts the order the way it is, you know well, having been through the 2017 tax cuts negotiating the terms of that legislation will take time there give and take and back and forth. that will not happen in january or february it will take a motorcycle of months -- months, i would not think about it as delaying tax cuts but negotiation the take long target there i expect we pass tax cut bill probably in summer. take that long to negotiate details, from i end, i am pushing to make them bigger and bolder, you asked what mike crmike crapo

said he is right. larry: i think, just, stay with the crapo point, he is a smart guy. you know him well and i do. there will be new tax cuts that is a different matter, new tax cuts, they should be scored dynamically for growth and revenues. that does not qualify, the existing tax cuts, the first of all corporate tax is permanent but individual tax cuts and alternative m minimum tax and child credit should not be scored against this will be current policy law forever expeffer like spending on welfare and food stamps and medicare

and social security, i think that crapo's logic is brilliant, someone should stand up for him, there are too many republicans c cower under phony scoring of congressional think about office and g.o.p. makes decisions in senate that we come to regret later on, you don't have to do it that way. >> i tell you, we have a discussion about that topic this morning. i and others 1ur7 supported crapo in using current policy as baseline, you look at scoring historically the way that congressional think about office scored in the -- think about of budget office scored in past they have not taken into account growth affect. they were off in 2017, we cut taxes and result was next year and each year after federal revenue went

up. we were on the laffer curve. you are right. we should use dynamics scoring but, what is that, more accurate scoring it takes into account the affect of policies you are put in place. and i i don't think that we -- i don't think we should be constrained, we should be big and bold, i would like to see a mention 5% gdp growth, in reagan fourth year in office, 1984, the gdp grew 7.2%, we can do that. and we have a mandate to do both. larry: you are right. i am pointing -- scott bessent is a cool headed start guy. he is on the right track. >> and a supply side ir. i fret a little bit, i'll

tell you on the record, i fret, you think you will get two reconciliation bills good luck on that senator, you know it is not that easy. i remember back in 2017, first half of that year, was spend 3ing -- spent frfftrying to end obamacare that did not work well. i will say, people out there want to see take home pay go up. there are two ways to improve that. one, three-ways, one is better wages for growth, two is lower prices from less inflation, and three is more take home from lower taxes, they want to hear about tax cuts just as much, i'm not diminishing the border, but i think they want to hear about tax cuts, you have to think about that, one last one. >> let me tell you, on that, one thing that i am urging

it my colleagues i think two of first bills we should take up in january when we come back are my ledg legislation just justice for jocelyn act. and second one the point you raised, my le legislation no taxes on tips, that is something that d donald trump campaigned on. my rid legislation is bipartisan, i would like to see us vote on no taxes on tips, i think we could pass it without needing reconciliation to do it that would be powerful. larry: how about overtime. >> so, i don't think if we have the votes on overtime, on no taxes on tips pause we have two democrat on bill, kamala harris said she stop

supported that idea, if we put it to floor hard for senate democrats to vote against it it would be great to pass a tax cut and put it on trump's desk to sign. larry: i almost forgot go kabout kamala harris thank you for reminding me. >> how is my pal pete hegseth doing? there is a front page in trouble and this and that, he is a patriot, highly decorated warrior we all know him well, he has been on this show i don't know how many times. how is he going to do senator cruz? did trump si single him out and say we're sticking with pete hegseth. >> i think that pete hegseth will be confirmed, everyone one of trump cabinet nominees will be confirmed, i sat down with pete yesterday, he sat down with

a number of senators, he a decorated combat veteran, he has spent a lifetime fighting for military and veterans, he is clear eyed about need to reform diagram of defense -- department of defense to get back to core mission, and buying prepared to defeat our enemies and put politicize woke agenda of last 4 years behind us. larry: did president trump single him out? when he made his phone call to y'all. >> i think that president trump will stick with pete hegseth and i think he will get confirmed, democrats want to make con mir confirmation hearing to the circus, and they are throwing mud at him, they don't want to -- let me tell you a benefit when pete hegseth is secretary secr pete hegseth i

will make a prediction, a year from now military recruiting numbers of sky rocket. larry: that is great. thank you senator cruz. >> thank you, larry. >> all right, coming up can elon musk and vivek ramaswamy doge delete regulatory state? we'll ask senator rand paul, when kudlow returns, remember, you can catch kudlow monday through friday 4 p.m., on fabulous fox business. if you cannot get us at 4, text your favorite 9-year-old, and she will show you how to dvr the show and you will never miss a single tax cut, i prom ups be right back. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪

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oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people. >> we have a lot of allies in congress who have their heart in right place we have lived we talked a big game for 40 years. elon and i are not politicians we're businessmen. larry: let's talk more about this, it is a big deal. elon musk and vivek ramaswamy. and their government efficiently department. joining us now kentucky

senator rand paul thank you, sir. have you been meeting with them or met with them or plot strategy you are a great budget cutter. if so, what are you thinking? >> i have, i am excited about possibilities of getting allies in the administration, i have talked with vivek ramaswamy several times, there are freight ideas coming out. there is no reason we should not completely quit hiring new people just a hiring freeze through at attrition, you will lose a million workers over 4 years, many can be told to come back. those who won't do their job or not can be fired for cause. i have requested records from hhs from dozens of employees who are steadfastly and illegally refuses to g give me paperwork, every one of them should be fired for cause.

i am excited about their enthusiasm and i just finished reading elon musk biography, i know when he looks at something, he looks at a part on rocket, it will cost a million in nasa does it, he make this is what we need, most people in government are too timid, we need risk takers and people who say, we have to do something about this interest we're paying. larry: i have talked with vivek quite a lot. he legal scholar that he can be talks about how supreme court decisions, epa versus west virginia chevron deference and others are helping him. is there, do you think there is a chance, not only cutting back on regulatory overkill of the career regulatory bureaucrats, but

knitting rid -- getting rid, just get rid of some regulatory agents, we do not need in 20th century. >> -- 21st century. >> without question, we should get new trump administration to reissue all major regulations, they would all be eligible for a simple majority repeal there is a congressional review act we can repeal regulations by simple majority it time limited, only things issued in last 90-days, reissue all regulations and we'll put them all up for repile. repeal, the more at the time a detrimental ones, if trump administration could reissue those, and we repeal them through congressional repeal act. larry: does coma

congressional repeal act trump the rescissions, some people said if you knock out regulations you are resirrescinds regulations. >> it depends, it regulation was enacted by a specific law and government is interpreted they have power to do it, you have to issue a regulation. and i don't think that we were aggressive enough in doing it in last trump administration, it can be done, you can either change regulation enough to repeal it through an act but i think you can without an act of congress as well, there is a that can be done on regulatory front, and -- spending front you can do it also. it is a s simple majority

vote, they could vote to repeal money we tried it once in previous trump administration for 15 billion, it failed, several republicans voted with democrats, but we could cut hundreds of billions of spending that requires most of republicans to street c -- to cut spending. larry: there are billions of money that was appropriate the but never spent. i would go after that, this so-called low hanging tribute. >> right now biden is shoveling that money out the door, they said hey would hire 87 thousand irs agents to harass us, we should stop that, there is a lot of stuff to be done, for example tough but it should be done. if someone is a millionaire and they are 65 and have teenage children, the

children get social security checks each month, how crazy is that, there is stuff throughout government like that, that should be repealed. >> i did not know that. you learn something new, senator rand paul thank you, sir. >> thank you. larry: coming up on kudlow is trump making the republicans the party of tariffs? we'll have breitbart's john carney who wrote that piece. and we have nancy tengler on set, we go to william mckinley. tariff of 1890, i was there. i am kudlow we'll be right back. er together. like your workplace benefits and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices voya, well planned, well invested, well protected.

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72 interesting thought, donald trump making republicans party of tariffs, joining me john

carney breitbart economics and finance editor. john wrote the piece, and my friend nancy tengler. before we get to the tariff thing. "wall street journal" editorial, sometimes they get it right. ceo get industrial policy boot, today editorial. the guy running -- of intel made a hash of intel. i don't know how much money they got. no one knows. then other one that got boot, was in of tavares from what was chrysler. and there was you know grants, and climate change me bet the ranch on climate change. nobody wants that, and he lobbied against gasoline. industrial policy, targeted grants don't seem to work. >> they don't work.

ask solyndra. larry: how could i forget. >> we try to. that is the crime, you instead of coming in, he didn't turn his attention to innovation, then now, the money they received is contingent oncoming money losing foundries,. larry: they should give the money back. >> they should. larry: they should claw it back somehow. >> yeah. >> that would be nice. >> it will be a take out candidate, but i think dead money for a long time. larry: now, john carney, back to terrorist issue, mr. trump blasted canada and mexico, he is using tariffs announce trade use of tariff negotiation to close border that is important, it looks like it worked. what do you think. >> i think it working, mexico doesn't want to be

launchpad for world illegals iimmigrants coming through mexico to u.s., and canada has its own immigration problem, they want to close borders, all trump did say i am putting a cost on this provide political cover for you back home, blame me, they are doing same thing, saying, that bad guy trump is making me to these things they wanted to do anyway, he sis using tariffs as policy tool that republican party used to use tariffs, they grew up as tariff airparty, activity part of republican platform up until cold war it went away because we wanted to en to enrich europe and japan. larry: it is true from

hamilton through lincoln through mckinley. so what do you make of that, nancy? as a successful investor. >> i think we know a little bit about tariffs from his first administration, h hamilton started it. what was different, there was no state income tax, we hear -- or federal. we hear this will be inflationary, but, it is static scoring, when you take into acountry may seatac cuts, that there -- we will see tax cuts and may not be taxes on social security or tips or overtime it creates a new dynamic, if oil prices come down you van environment with inflation remains in check, i believe some is rhetoric, i don't

think we'll expect 100% tariff. larry: you know, joe lavorgna, chinese tariffs, the import prices or u.s. prices from china fell they came down, they went up when covid recovered but so did everything else, they came back down again, i don't know how far i want them to go on tariffs, i think that world trading system it broken, and i believe that reciprocity. >> world trade organization of set up to be a capitalist organization, it has been captured by chinese communist and advances their interest today, w world trade is broken you are right, trump trump

is right, he is saying we're playing a new way, i don't think we'll get tariffs on mexico or canada at all, i think they will come along, i think we have to put very high tariffs on china, i think europe will join the united states club, they will wind up putting tariffs on china as well. they are not fighting a trade war with trump or u.s. larry: the europeans are so bad, have to get out. >> they are bad but that i want to come with us. larry: on that point i agree between us -- i till you, i was involved in that, it is a just huge, a 10 tylenol headache we're out of time, john ca carney and nancy tengler thank you so much. >> joining me now, ron johnson and wesley hunt. thank you so much. senator johnson can i ask you, i am sorry. i have to you know, i have a

burr under my saddle, i don't think it is a fabulous idea to wait until second half of the year or later to talk seriously about tax cuts, whether they are individual or corporate tax cuts or distribution -- depreciation, i want to restart the blue collar boom, it looks that it will be a couple reconciliation bills this year, not sure i like that, but you are the senator, what do you know? >> in the end it will be president trump who will make the decision. i have been pushing for is our top priority must be to prevent massive tax increase from starting in 2026, we have to fore forestall that, we're talking about how we do that, i am happy to put up quick wins address the border, there are other

ideas on the table stay tuned, i'm with you, i think we -- i would rather move fast than delay this. >> wesley hunt, i wanted one big reconciliation bill, that is what i thought scalise was putting together. one big bill. fiscal bill, it would include a lot of things. fundamentally, it will cut spending, it would use regulatory tools, and it would make the tax cuts permanent. as you may know crapo will be finance committee senate head, he said current policy,s that cuts don't need be to rescored. existing spending increases, are never rescored. we talked about this with senator cruz. you have a thought on that? >> well, the bottom line we

need to get tax cuts done immediately, and senate majority leader talked about doing it within first 30 days we have been crushed by inflation. and energy prices, we have to stimulate the economy but putting money back into the pockets of tax paying americans. and if we want to get out of this inflation state that we have been in, and restimulate the economy we have to unleash american energy and get tax cuts done as soon as possible before mid terms to get him enough time for policies to take in. larry: what one form, wesley, back to you senator johnson. take home pay went up under trump 1.2 and down under joe

biden, blue collar workers of all colors. his working class coalition expectses a blue collar boom, they are expecting take home pay to go back up it will not go back up without the taxes. >> no tax on tips and no tax on social security those are policies have have to do. we have to get that boom, this is why president trump got elected to do what he is talking about. insuring that every average -- ensuring that every day american has more money in their pocket to reinvest back into the families and economy. right now we have a 2 trillion dollar annual budget deficit, it has to end that is why doge will play a huge part in, that we hava grow our way out by allowing americans to make their own decision to reinvest in the economy. >> yes, sir. senator johnson, switching

gears, i talk about pete hegseth, i am worried about and with that senator cruz, i want to ask you, kash patel, in my humble opinion would make a very good fbi director, i don't know your thinking what are chances of his nomination. >> i have to comment, i support what s senator crapo is talking about. come back later and i want to simplify and r ra rationalize the tax code. this is a great idea. in cash p p -- kash patel, he is a fighter, the agencies are partisan, and they are broken and they need to be fixed it will take people that trump has

confidence in, i support kash patel and other nominees. will do about what president trump campaigned on. larry: thank you so much. sorry we're short. senator ron johnson con congressman wesley hunt. >> some joe biden pardon the j6 protesters? we'll ask tammy bruce and monica crowley next up on kudlow. they are playing great. meanwhile, i'm on the green and all i can think about is all the green i'm spending on 3 kids in college. not to mention the kitchen remodel, and we'd just remodel the bathrooms last month. with empower, i get all of my financial questions answered. so i don't have to worry. so you're like a guru now? oh here it comes— join 18 million americans and take control of your financial future with a real time dashboard and real live conversations. empower. what's next. to go further, you need to be ready for what's down the road.

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larry: joining he now monica crowley and tammy bruce. tox fox news contributors. alan dershowitz said biden should pardon the j-6 protesters now he pardoned hunter. >> high he will be busy pardoning the rest of his family, they are at risk because of money flowing in. he will be busy, but if the world were normal, j6 protesters should be pardoned that will likely be left to president trump, his election is linked to fact that american people remember sick and tired of abuse of system and abuse of

the law, use together again every american in every level, this was an example of it. this is why he was elected this is why he should do it the beginning of reconoiderring the justice system. larry: dershowitz said it is about biden, i think it will be applied more to trump, . the people were prosecuted for who they are, if they were black lives matter people doing same thing they would not have been prosecuted but they are maga people, so m they were prosecuted. >> right. and this is one major reason that trump saw a landslide victory with a mandate, american people are fed up with this two teared semp justice -- two-tiered system of justice, you are persecuted and prosecuted if you are pro trump and not engage in left wing group

think it is a disgrace, president-elect trump, and jd vance and pam bondi and kash patel will clean up the system. larry: more 250 time next time, i promise, i'll be right back. what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com (husband) we just want to have enough money for retirement. (wife) and travel to visit our grandchildren. 's y at fisher investments we start by getting to know each other. so i can learn about your family, lifestyle, goals and needs, allowing us to tailor your portfolio. (wife) what about commission- based products? (fisher investments) we don't sell those. we're a fiduciary, obligated to act in your best interest.

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