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tv   Kudlow  FOX Business  February 13, 2025 7:00pm-8:00pm EST

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when i started walton goggins goggle glasses, i had no idea what i was doing. but godaddy airo does. using ai to build a logo, website and social content. so i can let the world know, if your goggles ain't goggins, they don't belong on your noggins! larry: hello, folks. welcome to kudlow, i'm l arry kudlow. well president trump lays out his plan for reciprocal
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tariffs. get this, stock markets loved it. we'll have senator kevin cramers and david malpass and ej antoni break it town f-- down for us, and elon musk is really the jet fuel powering mr. trump's federal audits. congressman byron donalds and katie pavlich weigh in. and finally battle on one big beautiful bill, newt gingrich waiting to talk about it but first, hillary vaughn is live at use house. what is -- at the white house, what is yo. >> what is your now the. >> what trump said today in his mind this signals end of what he is considered a foolish and stupid u.s. trade policy up until this point. also something he is most excited about, he said when he thinks back to everything that he signed in his first term to everything he has
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been so far in first flee 3 weeks of his second term this is what he is most proud of, he said time for american businesses and workers to win, that means leveling playing feel for u.s. businesses and workers by tracking our trading partners the same way they tax us, he said ceos that he talked, to love it. >> many love it. and they say, this is going to be will thing that makes cour country prosperous again, it will pay down 36 trillion in debt, if you build here, you have no tariffs, i think that is what will happen, i think our country will be blooded flooded with jobs. reporter: trump said it would not be fair for a flat tariff, it a tit-for-tat tax. trump ordering u.s. trade representative to review over next month and a half
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all our trade deficits with our trading partners and report back. >> studies should be complete by preliminary april 1, we hadn't the president the opportunity to start on april 2. if they drop their tariffs, prices for americans are coming down. our production will go up, and costs will go down, it is a two way street, that is why it is called reciprocal. reporter: that is the end game. other countries have 47 days to decide whether they will go to lower their tariffs for the u.s., and businesses have 47 days to decide if they want to move operations from overseas here to the united states if they want to avoid the pain of this. larry. larry: all right hillary vaughn, well done thank you. you broke it down well. so, i think market gets it
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trump's s reciprocal tariffs are not inflationary. that is the subject of riff. today, president trump couldpaon his fair and reciprocal trade policy, aimed at creating a level playing field for american workers and businesses and will hopefully deal with many unfair trading practices that are aimed at united states he is using simple metric, you tax us, we'll tax you. but if you lower your tax on us, we'll gladly lower our tax on you. taxes are really tariffs, one place president singled out was european union. that with a 20 percival you added -- a 10%, value added tax, that is a tariff. and they have across board tariffs that are hire than ours. on that score, president trump singled out 10%
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european auto tear they've tariff 4 times america's 2.5%, top of the 20% vat. that is all unfair. there are countrywide examples. enindia has 6 times tariff rate, mexico these times, china 5, pra brazil 6. world trading system has been broken for over 25 years maybe longer, most countries have taken advantage of america by aiming their trading barriers at us, there is no international court to fix it worm wto is a bufbust and in bed with chinese. president trump will try to fix this by applying a reciprocal tariff benchmark. this point we don't yet know how far or y wide policy
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will go, or how much in tariff revenues might be raised, they are important questions, yet unanswered. in today's pressure i thought mr. trump used a moderate low key approach. was not really bashing anyone, he focused his remarks on how the industrial heartland and our whom economy will pe become bigger and more productive. stock market rose 400 on the news. no action will be taken it will april one after a review, reporters kept nagging president trump about inflationary tariffs, they are wrong. exporters will bear the largest burden because they will be forced to slash their prices to sell in america. plus, export country currency will fall, while
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u.s. dollar will rise. all that is counter inflationary. all that said, all right, i strongly support trade reciprocal it is a -- reciprocity, it say noblenition, i would like to see president talk up tax cuts again. tax cuts, jobs, middle class wages, rapid economic growth. let's get back on the growth message. that is the riff. all right. >> joining me now, ej antoni, unleashed prosperity hot line, david malpass. former president of world bank and north dakota senator kevin cramer, you are kind to join us humble economists, let me begin with you ask for your reaction to president trump's reciprocal trade policy. >> well, i think first, i think reciprocal policy is
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the most sensible. it really gets to the point of balance. you treat us well, we'll treat you well. as well as you treat us, that is ultimate in fairness, one thing that i wonder about, there are other industrial policies beside tariffs that give advantage to countries like china who don't have environmental compliance, no labor compliance, in terms of workplaces. india is another example. to get to complete balance, i think we have to talk about some of other things but we could bring our own costs down with this same issues, like environmental compliance. larry: you know senator oto-- on that . of that gives mr. trump's wide let latitude, he is the art of the deal, i think it will has level playing field in % of reciprocity is
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straight forward, but it gives him negotiating room. on tariffs for example, perhaps on drugs perhaps on national security. >> sure. no question, there are a lot of factors that go into this this is the first one, by the way, let's face it time that he gives country to comply, you will see a lot comply. the bottom line they will come down for everyone. most will not want the tariff. larry: ej antoni. coming to you. your reaction, but also senator cramer said, there are a will call 45 days, i think 47 to be exact between now and time of trade review is done. and recommendations can are made. howard lutnick said particular go into place april 2 for that matter. but ej antoni is that it. are you surprised stock
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market went up so well, how do you reaction? >> i think it you could say it adds a certain amount of uncertainty but that the uncertainty is just a question of are things going to remain so, do we keep status quo or they improvement you are talking about countries that sometimes have 100% tariff rate on american products. if we can get those down by the president's threat of reciprocating a tariff. you that will a boon to american exporters, low to increase production and. am and real wage growth, that is a very important topic. so all these things are very positive developments, and that helps explain why the market rallied as much as it did today. larry: if you do this right, you have smart people around
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the president, you will get supply side effects, you should get more production, and domestic production. better worker wages, real worker wages, i don't know, david malpass, you are worried about inflationary? every time you see word tariff in media, with a few exceptions this show one, breitbart, but, the word tariff you see inflation that is an assertion is thus far unproven. >> i think you could overwhelm the prices with production. and so senator kramer is right about the -- senator cramkramer is right, you think about competitiveness by u.s. it getting a big boost, there is talk of other country lowering their tariffs. that is di disano
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disinflationary, one point i think stock market is seeing two good things that are possible. one is end of the war in ukraine, and one is that the democrats are doing so badly, we have to look forward to say republicans could hold the house and senate in to future because of good policies now. larry: yes, democrats are barking up the wrong tree right now. how about that you know, interesting sen senator cramer, our friend, dan clifton, he is talked -- been on show talking about ukraine-russia war premium on oil prices that is an important point, what president trump did yesterday, i think was so dramatic, and so positive, you know cutting through the moras right to the point, and launching a peace process, he trump launched a
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peace process yesterday. with putin and zelenskyy, and he staffed it out with marco rubio and others. i have not seen it yet. but that could drop the premium on oil prices, i don't know, 10 bucks or so, 15 bucks? that is counter inflationary. >> well, for sure, any time energy prices come down, that is greatest thing you could do for inflation, all things are tied to energy. and most cases multiple ways, having said that, we often times forget that the geopolitical ramifications of policy and of policy ramification of geopolitics, you are right, this is good news, and markets are emotional, peace itself is good news. but the fact that he came out so strong so quickly made such a difference on world stage in a positive way, i think that all that creates trajectory that is
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going to reit direction. -- rig. larry: ej antoni, inflation numbers coming in are bad. we had several straight months of bad. including january's number. even today's producer price index, we have a couple charts about the inflation, i think we have a 3, 6, and 12 month chart, and commodity boon. year-to-year about 3%. i can't quite see it, 6 month is over 4%. and one month change is 6%. very interesting. wrong direction ej antoni, whatever the tariffs story s this is the wrong direction. >> 100 percent, what is interesting if you look at annual year-over-year change in cpi for example, every month since fed cut interest rates last fall, inflation rate has been accelerating.
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the fed was way too early to cut rates, they took their foot off the brake and stomped back on the grass that was a huge policy mistake. we called it out, this is the fed that president trump will have to deal with. we have i think fiscal and monetary policy at laggerheads. the fed eased way too early, they did not draw down plans sheet enough. can debate as to why they did that. whatever the case may be, they made that mistake we'll have to deal with inflationary impacts, this year, right now, and beyond, and see it, commodity data, that will feed into the wholesale inflation numbers thatting feed to consumer numbers. we still have more months of pricing increasing ahead. all this is -- >> yes, we have -- i want to
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repeat this. i have the chart, 12 month inflation rate cpi is 3.0. however, the three month inflation rate, is 4.5%. and the one month, that came out yesterday, 5.7%. almost 6%. and if i can, show the commodity chart. the crb futures commodity index up over 20%, year-on-year david malpass, i think that -- ej is right, fed played its cards all wrong, no question. now david, the question is, what to do about it. it is bidenflation. january was mr. biden's last month in the economy, allegedly. but now president trump has to deal with it what should they do? >> that -- they should say they want dollar to be strong and stable. we have to look at gold, it
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was going up throughout that period. back to ej's component, not just what fed did but when biden did, can he was adding workers like crazy, and putting on layers of regulations. what we should do now is reverse a lot of harmful inflationary biden policies, and trump is doing that really fast. and then, as we go forward, build a whole policy around a strong and stable dollar and reserve currency forever the u.s., that will be best for investment in to united states, and it will make us stronger, it will be self fulfill, if they kim out tomorrow, and said, we have a strong and stable dollar policy, bond yields would be able to go down, they would know we'll pay for the debt and do more forward. larry: i like that, you don't know they will do it
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ssenator cramer how about the whole trump program, lower tax rates will boost production on supply side. and david mentioned deregulations and energy production with more deregulations. and elon musk doge, he is trying to cut spending, left and right here, had a fair amount of success. no matter about what left wing judges and democrat doe, put that whole package together, including reciprocal on trade, that is pro growth. and counter inflationary, and good for the middle class blue collar worker, and everyone live happily ever afte after, i want senate to chime in with one big beautiful bill. >> because senate chimed in with their smaller bill, that house decided to step off to side lines and get on
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the field, i am for whatever mike johnson can get passed. but house -- budget is ignoring what we have talked about. that is current policy baseline. and we have -- if we believe in pro growth supply side tax policy, we should not have to worry about the score, when you consider the cbo is worst score keeper, we should not pay attention. larry: i agree. >> move forward. larry: i agree. i say it every night. >> your point, markets are emotional, can you imagine emotional response toii extending the tax. >> larry: we'll save it for byron donalds and katie pavlich. >> one word. pipelines. larry: pipelines.
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>> p produce more. larry: yes, i got it. i would however david malpass. to all of you, i support mr. trump'see reciprocity. there is a lot of details that have to be filled in. but, i want to see him talking tax cuts again. you know, what supply side tax cuts work. minimal regulation works, budget restraint works but the whom package tax cuts, growth, high are wages, i would like him to get back on that message, ej antoni, i will single you out for this. >> 100 percent. i think you are right. we got to get energy production up, and get spending and deficit under control, and get growth up
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this is why scott bessent our add treasury secretary his plan hits the nail on the head. larry: growth i. tax cuts, laffer curve, already, ej antoni, thank you, david malpass, and senator kevin cramer, you are terrific. >> coming on kudlow, president trump moving too fast? for the fake news and the deep state and the democrats, to catch up to him. he is just too fast for them, we'll talk about with joe concha and mark simone on set when we return. i'm thinking of updating my kitchen... —yeah? —yes! ...this year, we are finally updating our kitchen... ...doing subway tile in an ivory,
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larry: all right president trump is moving too fast for the fake news and deep state to keep up. talking about this mark simone, hall of fame wor radio show host, joe concha. mark, democrats can't keep up. >> not fair, they still work on a greenland response, he is down to 47 --
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>> [ laughter ] larry: that was months ago, [laughter] fabulous. >> they can't think up lies fast enough, like a flurry of punches, this is not fair to the white house correspondents. who could sit there all afternoon, nothing to do. once a day for 20 minutes in briefing room then to your desk, now they can't keep up, he is wearing them out. larry: warp speed world. >> a blitzkreig. >> yes. >> we have north of 70 executive orders at this point. remember, he came to office, donald trump, 24 days ago. it feels like three years he has been in office. when trump is controlling conversation, we're talking about saying narrative not daily but hourly, always taking questions, and in front of people's jeans screen -- screens, democrats this is a moving target where they can't coalesce
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around one message, they are mistakes volume for policy it is annoyingly ro loud. if are a republican you want more maxine waters, and warren screaming because, one is action and one is loud words. >> this is planned. i think. i think this blitzkreig to show a -- joe's point, from the start, i know a little bit. there were policy discussions and political discussions and tactical discussions going on. moving to fall, post november 5, you had well-known think tanks and other people, and a lot of mar-a-lago. i mean, president trump knew what he was doing here. >> it is brilliantly planned, he has chosen what you call 80-20 issues, this
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is suicidal to oppose it, democrats do can the dumbest thing, swing at every pitch, they are doing that. >> a great point. larry: are tariffs an 80-20 issue, i continental , concerned about, that i support the reciprocity trade, but it gets such bad press. you see inflationary tariffs, i'm not sure that the administration or president has given enough rebuttal to that, i think tax cuts are more popular than tariffs, but i think that. that is my problem. what do you think? as media guy. >> i think that cable news does not allow for a lot of nuance. >> tariffs, if used as a negotiating tool and successfully, mexico for example and if he uses it in a way it gets results.
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there are tariffs on steel for example, japan is asking for an an exception, with trump is a negotiation, clear as mud. larry: i rather see him in oval office with elon musk talking about cutting federal spending befor deficit, i love elon musk message and fact that democrats have a musk derangement send roam. >> if he cuts this trillion dollars, pok possible he could lower federal tax. if you have 404 billion dollars -- larry: he was sleeping in a shack that mar-a-lago. >> in the end democrats are party now that defending
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waste, and corruption, like defending cancer. any time you want to cut federal government that is 80-20 issue. larry: you are right, joe concha, and mark simone fabulous. >> why are democrats stupidly against waste, fraud and corruption. we have congressman byron donalds and katie pavlich,, next up on kudlow. pl nflammation. so for faster pain relief, advil the pain away. from recent grads... ♪ ...to rising stars... ♪ ...to living legends. - you got this. - thank you. vanguard retirement solutions. fifty years of helping investors be well on their way to their financial goals.
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>> we have here rh rule of b bureaucracy, we need to delete entire agencies. larry: zo joining us to talk about it flood cflorida cond
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congressman byron donalds and katie pavlich, welcome to you, mr. trump is making policies but i think elon musk putting in jet fuel to make the budget cutting deregulation, stop the permanent bureaucracy, always moving to the left. without musk it could not have been done, musk is driving this. >> i think you are correct. once again, president trump has picked all of right people in various spots. to get the agenda done. what elon musk is doing is has needed to happen for decades, someone from the outside, walking into the agencies, ceasing operations, and doing a top to bottom eval. if you think that there is an easier way to cut dcspending, it is not the
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case. the agencies have to be held account able for everything, from top to bottom. it congress depends on administration does not have enough information or purview to the agencies to know where to begin or end. so what elon musk is doing is correct, you have to go in there cease everything, and examine it, then give that stuff to congress to do necessary legislative items to make sure that spending does not continue. larry: you know katie, you know, one big beautiful billionaire, conducting one big beautiful financial audit of the united states government. only been at it a couple of weeks finding massive fraud, waste and abuse. call it what you will. he is not making policy, but showing you why past policies have failed. now you have left wing judges and the democratic party running against it. what has to be among dumbest
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things possible. >> well, the left is starting to see the way they function their infrastructure for activism and pet projects and their really political ideology, which is government is best. and the bigger federal government the better. they think to run the nation. we have seep seen that is fail, we look at what elon musk is a, he talking about basic things, people in social security can't be 150 years old and still receiving payments, people make argument they are minor cuts, they are entire agencies, you talk about a couple thousand people who are getting payments who should not that adds up, he is doing something that republicans and democrats have been advocating for for years through an efficient technology savvy program, and pointing out, that
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payments are going out the door with no reasons, now thises e evidence in last days of biden administration of them shoveling stuff out of the door to get money to their activism and friends, on campaign trail we heard a lot from democrat about saving democracy, you know, defeat donald trump because democracy is on the line. to elon's point, the bureaucracy was on the line, now it is being ripped up. larry: byron back to some of the first, elon musk and his crew, of geniuses are now government employees, they are special government employees. a classification that has been used by republican, and democratic administrations, they are government people. they have been cleared. they have been vetted for sensitive information, you have some judges saying, not even treasury secretary is allowed to see sensitive information in his own
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treasury department, how stupe c -- stupid is that, it is audit then a pause. i want to ask you, we talk to russell vought the new omb director, they are asking for a pause in order to review a whole bunch of funding programs that don't meet president trump's criteria and don't meet the fraud test from elon musk. it is a review. they are not saying we'll undo congressional mandates, they are saying let us audit, pause, review and figure out what to do with the funding programs. what is wrong with that? that is what any business would want to do it seems to me. >> in is nothing wrong with it. but if you are the democratic lift, like katie said, all of your projects are the things that are
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halted and reviewed. let's go 4 years back, joe biden came in he halted all of donald trump's border procedures, protect protocols they did a review. we know what they did after that, they opened the border it was most disastrous thing to happen to the country, that said, we're basically doing what the democrats did, and now applying it to all of government, pause it, review it, and the stuff that makes so sense we'll send, and -- makes no sense we'll end, and congress will speak to what needs to we'll have a more efficient and lean government, democrats are not upset about government reviewed but their p -- pet projects are being exposed to american people, and do donald trump is serious about getting rid of that. larry: tape to budget battle. between senate and house. from senator mike crapo, not
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too bad in the weeds. >> to do a current policy option that rec recognize that ete eceprocess of law is that budget committee and house and budget committee and senate, determine what baseline is, if they determine that cbo will score it by the baseline they set. larry: i'm saying that, i will go to katie. it is a by byron thing, i want republicans in house and senate, stand up on their hind legs and say no to congressional budget office phony baselines as mike crapo, senator crapo, you are extending current policy, you should not have to rescore it they create the baseline. that baseline should show dynamic scoring, strong
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economic growth, and the success of the tax cuts over 7 years, don't let cbo d doedo it, they do -- do it, they do it, it is in the law, why are they not not doing that. go ahead katie. >> well in this town, the cbo is so relied on as accurate scorer. but on the messaging front, republicans have to talk about this in terms of trump taxes are nottic tended what extended what is opposite, a tax hike that should get republicans and democrats onboard, constituents will see paychecks decrease if you don't make the tax cuts permanent. larry: all i'm saying, byron, budget comm
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committee should create as open baseline, don't be intimidated by phony cbo baselines, revenues up 2 trillion since 2017, create our own baseline then go on. >> agree. i think we should do that, we're doing to extending current law, only in washington when they say that costs you money somehow. it a ridiculous argument, it has been the whole time, any business owner knows, the cost of good sold the cost of getting revenue in the door, does not cost you stuff. you need those things to generate revenue. it is the other items that cost the businesses money, federal level, the issue is spend, manier t spending is out of control, we should look at t tax
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policy as neutral. mandatory spending has to be curtailed. larry: they are not doing, that budget committee is not creating its own baseline, not keeping tax p policy neutral, you just said it tax policy is neutral. it is the same thing, and has been a great success. it raised all this money, i'm out of time for this. i am saying you to, house budget committee has to create its own baseline, do just what you said. it is a m neutral tax politickerpolicy, and ch chock-full of budget cuts. >> thank you. >> coming up, are republicans willing to risk a deep recession in mr. president trump's first year, i hope not, we'll talk about it with former speaker
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larry: joining he now, newt gingrich former speaker of the house. economics extraordinary, newt, if they don't get this tax cut done fast, you say
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may or june, the whole bill, if they don't, you risk a deep recession, and a major stock market sell-off. plain and simple newt gingrich. >> well, and you almost guarantee losing the republican house next year. and ruining the last two years of president trump's term, with with what hakeem jeffries playing the nancy pelosi role, it mystifies me to how house and senate republicans can't understand, you have to plan back from victory, victory is winning, in november of 2026, that requires a strong economy. and that requires a very strong tax cut deregulation, pro energy, affordability bill, certainly no later
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than mayor -- june or may, i can not understand these guys, you know i lived through this reagan lost 26 seats in first off year-old e election because his tax cuts do not go into effect until 1983. i hear senators, saying oh, we'll pass the easy bill early, and get to the other bill by october, they are talking about killing the chances of keeping the house republican, it makes no sense. larry: i could not agree more. i will read quickly from your article, if we want to keep house republicans we have to pass tax cut, energy deregulation and affordability boy mayor june uy. you say i am shocked who talk about having two bills instead of one, you say if you want two bills make sure
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the tax cut is the first bill. >> border and trade is important but election was about the economy. it was still the number one issue. and biden's achille's heel and inflation bidenflation still lingers anecdote is trump program but it must about through. >> it must. they need too get the bill clear. make sure we know what is in it for 10 week we need president trump back on the road, there are 13 districts that have democrats he carried. another 21 districts that have democrats he came within 5%, he goes there and says no vote, is a vote for a tax increase on your family, i think you will see at least half of those democrats decide to vet with the republicans. >> i think a lot here is going on, running at warp speed, he is doing wonderful
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things, what he is doing with vladimir putin for example, setting up peace conferences. that is great, don't get me wrong, i agree with reciprocity model for tariffs, but the bred and butter are the republican party, and bre bread and butter of this election was lack of growth, problem with real wages falling, pocketbooks depleting, prices rising too high, i think there is a risk there is an off message. i just worry about getting off message. >> look, here is a simple principle. you have a revelationnary president, we need a revolutionary budget to go with that revelationary president that includes
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trump savings and president trump revenue, in the reconciliation bill. >> ca yes, thank you, newt gingrich the best of the best. . ♪ vanguard. we got this. fifty years of helping you invest for every chapter. hey, folks, john rich here. i'm not just a country artist, i'm also a business owner. and it's frightening what banks are doing to american businesses. they've let cancel culture infect their decision making. when a bank cancels your personal account, it's inconvenient. but when they cancel your business account, you're out of business. that's why i co-founded old glory bank. we're a full service online bank that will never cancel you for exercising your constitutional rights. open your account today at oldglorybank.com we stand with you.
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