larry: hello, folks. welcome to kudlow, i'm l arry kudlow. so. why is it democrats condition connection -- can't connection with america, includes shutting

down government, raising taxes, sudd sanctuary cities, it is la lady's night out on set. president trump is right about foreign tariffs way higher than ours, but investors forget rome of the not built in a day we'll talk about it with kevin warsh on set. and senators tim sheehy and markwayne mul mullin, and senator tim scott will tell me when my tax cut is coming, first up jackie hinrich live at white house. reporter: so much news on the stat us of talks between u.s., russia and ukraine. you know, putin's statement today was not a no, but it was the also a bit of a nothing burger.

like making ukraine a natural state, taking away some of their t terries, and president, noted as much. when he reacted to putin's statement. >> i have leverage, i don't want to talk about leverage now, right now we're talking to them, his statements today were pretty positive i think, put out a promising statement but it was not complete, i would love to meet with him or talk to him, we have to get it over with. reporter: putin said: >> and now ukraine similarly resisted a cease-fire without security guarantee, president trump punished them for that, withholding military aid, and

intelligence sharing, ukraine agreed to a cease-fire without them in happened, now question is whether punishes russia in a similar way it drive a deal. take a listen. >> we'll louke to see a cease fear from russia. and we have you know not been working in the dark we've been discussing with ukraine land, and pieces of land to be kept and lost, and all of the other elements of a final agreement. there is a power plant involved. reporter: one pressure point white house has said they could lean on is more sanctions, president let a key sanctions waiver expire. russia general license 8 l that allowed other country to buy russian oil with u.s. dollar and u.s. payment system, cut to putin's war machine because it was not renewed but it could raise oil prices, it will have big

impacts on u.s. allies this buy russian oil like in europe, france. and belgium and india, diplomatic sources tell us they did not get a heads up from u.s. that president would let the waiver expire, adding to a sense we got, that perhaps the administration was not tracking it would expire, they needed to act on it the fact they did not renew it before it expired is serving as an important point of leverage as conversations happen in moscow. larry: wow, interesting. oil prices coming down. that is an interesting separate point, jackie hinrich thank you there "new now to capitol hill with chad pergram, what is latest from cr shut government down business. reporter: good afternoon, important to watch sub atomic political movement. senate democrats were silent as they left a meeting about a shut down and at least one

democrat is ready to break a filibuster if they get votes on secondary plans. >> yes likely, if we get the appropriate amendments then move forward. but then, let's see. if we can get 30 day cr, that is what we should do. reporter: senate democrat just finished their meeting, reporter say they could hear yelling from who is believed to be new york democrat kristin gilibrand in the hall. they asked for votes on amendments related to doge, and cutting in washington d.c., one republican opposes the g.o.p. bill. >> the bill before us will lead to a $2 trillion dollar deficit this year. no pressure from senate republicans or president trump. >> no. >> you surprised with that. >> no, i do.

people know where i am, i am consistent on opposing debt and spending. reporter: paul will vote with most democrats to filibuster the bill, if government shuts down g.o.p. is ready to blame senate minority leader chuck schumer. >> his return the house attitude is what we're dealing with, rule or ruin approach, it is irresponsible and reckless, trying to leaden tear democrats -- entire democrats in senate over the cliff, hurt american public in the process. reporter: many democrats were quiet le leaving meets, senator try to secure votes on other plans that way democrats can say they fought against g.o.p. and president trump and tried to save face. larry: chad, when is the absolute deadline on this? reporter: 11:59:59 p.m. tomorrow night, if senate

remember to change the bill, they are into a shut down. >> got it, copy thank you chad pergram. >> slightly -- we lated subject, democrats can motte connection with america, that is the subject of the riff. democrat incapable of connecting with america, not columbia faculty lounge, that is not america, not hunter biden art gabry, gallery or connection with middle america or working class america they want shwant to 1 shut down the government, instead of cutting taxes on working force. and providing new incentives for factories and factory workers, democrats can't connection with america they would rather defend a anti-semitic palestinian been taken to custody and louisiana, because he had no

business on the columbia university campus in first place, what do many democrats do? they support a protest in lobby of trump tower in new york, president is no washington. speaking in the of oval officeo why democrats can't connection about america, some democrats defending in guys. they are obsessed with attacking elon musk. who is trying to end the democrats 2 trillion dollar defit, by innings waste, fraud and abuse en d endemic. and elon musk has fingered them and their magnet to attract illegals. >> the waste and fraud and entitlement spending all of the -- most of official spending, so that is like the big one to eliminate.

where you see biggest outcry is from the democrats who are they don't want the waste and fraud to be turned off, because it is a huge magnet to attract the illegal immigrants and have them stay in the country. larry: there you go, democrats cannot connection with america they don't let border czar tom homan do his job, and insist on saving sanctuary cities, to prevent them from enforcing the law, homan blasted new york state, saying if you don't get out of the way we'll double man force of i.c.e. agents if we have to. and democrats can't connection with america so many still want biological men to compete in women's sports because you know, 70% of voters want elon musk to cut waste, fraud and abuse, and democrats can't connection because they can't stand up and applaud a

13-year-old cancer survivor, yeah. one more. democrats can't connection with america because rosie o'donnell is going to e ireland, and many tweeted to her leaving would make america healthy again overnight. >> why in the world do you let rosie o'donnell move to ireland. >> thank you, i like that question. do you know who she is? >> yes. >> i'm joking. >> you better off not knowing. >> i wish her well. those are just a few reinces why democrats cannot connection with america that is the riff, joining us now please lisa boothe and

caroline downey and emily compagno, thank you, ladies. i could have left the rosie o'donnell them out. the rest is -- >> you could have. larry: [ laughter ] lisa. you are right, pull my chain, but, just, just on -- most boring thing is the fiscal thing about the continuing resolution. but look, everyone knows that republicans passed bill, and everyone knows that democrats now if they don't get the vote up by 12 midnight or just before one second before, we'll -- you know risk huge tax increases, and shut down the government. and make it worse for federal workers, who are already you know, not particularly happy, why do they do that? why can't they just play along just once and be like decent human being. >> they hate donald trump more than they love this country. larry: okay. >> i will say one of my favorite moments from donald

trump was during the primary debates in 2016 he was asked about his comments toward women, he said -- democrats hate donald trump more than they love america, for longest time, democrats have had control over what we read, see and hear, media, hollywood and big tech. now donald trump has defeated the system this past election cycle. what happened is democrats created their own echo chamber, they have convinced themselves not just 20% of america who want men in women's sports they thought it was the rest of america they have convinced themselves they found out this election cycle more americans align with us. with republican way of thinking common sense way of thinking they have not woken up yet, i don't know what it will take, but in put in caveat i have worked in politics for a long time in 2009, "time" magazine said

that republican party was instinct. and you never know. right now i think they are wondering in -- wandering in wilderness with hillary clinton. larry: you know, almost forgot that name. emily, coming back. >> sorry to spring her up. larry: i think democrats hate elon musk because he has them fingered, he has nailed them. in our interview he was clear they have been feeding at the welfare entitlement state for years serving as a magnet for illegals and maybe future voters, they don't want to see their bureaucratic empires gone, add to, that the numbers on the polls, you know voters are talking 70ish percent favor, waste, fraud and

abuse. >> i think there is no end to the failures they are mirroring themselves in -- the reason of they hate elon musk he -- represents the new -- why it because they hate anyone that they deem to be a trader. so elon musk thinking when everyone was driving teslas, he was answer, electric cars, his innovation was answer to democrat party, but, as aned independent thinker he aligned himself with the common sense values, no beast is more scorned than one they deem a trader, you dovetail that in with beast is eating itself, ffailure of them it grasp why they have lost connection with american people, greatest weapon they have was cancellation, you look at why people refuse to stand up for common sense,

it was always because of a fire of cancellation from mom mentality fomented with democrat party, today people without jobs are storming trump tower saying free mahmoud, instead of freeal alejalex alexander. rest of us at work, look at them -- rahm emanuel have come out and said, this should not be happening, focus on classrooms and china, get b back to work that is -- >> carville lost his minding over this, he can't conduct a simple interview, with -- you know my friend martha for heaven's sake. on there are point, very important. what are they doing storming the lobby of trump tower? who , i don't know who they are. i don't know they are all democrats, i suspect some of them are. but maybe not. okay. but i don't see democrats

condemning him for his anti-semitism or condemning columbia or any of other elite schools we may have all gone to but no good anyway, that is the issue. where is the condemnation, it should have been out there almost two years ago, it never was, and still isn't, now they are flooding lobby of trump tower for what? >> right they have always turned a blind eye to bad actors in their camp as much as they target us for ours, they are jai scraping bottle of the barrel for direction, and democrats are still in wilderness, they refuse to leave their silos and concede an inch on 80-20 issues, i have noticed that when there are democratic decenters who care to leave camp some say, men invade ors in women's sports that

is not only unfair but unsafe, like m mulltin from massachusetts he was almost run out of time, and gavin newsom, on charlie kirk podcast, right after this, whoopi went on the view and said who is this guy. they don't want to give a single second to a descent, went democratic party, i think that is the problem, there is still no maya culpa, to your point, democrats that are being more common sense they will be run out of town. larry: one other one, tom homan in albany, he is kicking butt. publicly, going after governor hochul and praising mayor adams okay. but all about sanctuary cities, and all about

deporting criminals. now, is this -- i don't think that this is an 80-20 issue more of a 95-5 issue, but down see democrats coming to the support tom homan, where are state l legislators, house members or chuck schumer. the line yesterday, he said you are a palestinian, you used to be jewish, you are a palestinian, we have the tape. he was frustrated with schumer does not want to help on and common sense thing, that is why dem democrats can't connection with america. >> democrats always engage in the shaming process. president trump does not subscribe to that, tom homan does not. that is how you win, i'm doing right thing for american people.

no matter who you call me i'm not moving, they have been able to solve illegal immigration crisis in 50 days, i thought about something. talking about elon musk only core value democrat party has is hatred, they are setting electric vehicles on fire. larry: they used to love them. they are sitting chargers on fire, i asked him, what do you think, the guy -- poor guy, his stocks has gone down he lost a efficient since he came to -- fortune. >> this was a -- a core issue they cared about, and it has been exposed as a lie, i will say that democrats defense of bureaucracy, shows they don't stand with the american people. even look at reaction to miles taylor, who wrote op-ed saying we're resistance and thwarting a dealy elected president, treated as a hero, and elon

musk and to kn donald trump are condemned. larry: democrats like to spend our money. >> they do. >> okay. larry: how is that. >> money laundering. >> they really, with gusto and great enthusiasm, and almost love, they like to spend our money. americans say stuff. >> we're talking about. newsom, i mentioned in california, we know that there is a money laundering scscheme in california with illegal alien medicaid from comes from federal government progressive in california are f getting ex tra money.

their political condu conundrum they are still abandons working class for people who are not citizens. larry: working folks having trouble making ends meet. this is one of the biggest themes in this election, democrats have learned nothing. trump has been in office 6 or 7 weeks, he won in november, it has been months now. have democrats changed, i ask you emily, emily compagno. >> they have not changed, i don't think they will look at bernie sanders, right now most terrifying moment in history in his words power of oligarchy, when opposite is true, we're we're discussing this administration rested power away from bloated federal bureaucracy and handed it back to american people that is terrifying to the democrats. >> democrats stop talking about oligarchies, they have a shot at coming back.

you know. this -- >> don't give them pointers. larry: that is incredible, oligarchy. >> we have solved the problem. larry: you are right, that woman that gave counter to trump's speech. before -- i was interested in her, shee she was a former cia agent, i lasted 4 minutes. and these went tax cuts for billionaires, for billionaires. i said no, no, no. oligarchies, i love it lisa boothe, caroline downey and emily compagno, you can catccatch 'em leo out numbers, we'll days, on fox news. and coming up on kudlow, trump's reciprocity trade plan is spot on. but you know, rome was not bottom in a day -- built in a day, brick by brick. kevin war s warsh

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larry: joining us now kevin warsh, fe fellow at hoover institution.

welcome back. i market is correcting. but people don't have patience any more. and i will ask you if you see a regd. talked about it all week -- i don't see a recession. >> president inher i ited a fiscal and mop monetary mess, patient is in order. economy came into this period with a lot of government money that should not be there with negative multipliers, bad monetary policies, reversal will take time, the benefit of the doubt should go to a new leader at the time like this. larry: if we goes through this fiscal and budget consolidation with elon musk and so on, if he brings the spending share of gpd down is that not healthy for the economy. >> that is great news for

the economy and corporate earnings, government ask too -- government is too big, it spends too much, money it spends is wasteful, that is what i elon musk and gang have taught us, it the take time for government to spend less and private to spend more, this is transition that economy needs this is really good news, and economics we call this an expansionary fiscal con contraction, president is well positioned to have one now, i think we're on the right track, so good news is coming. larry: he is talking about major league tax cuts, about 100% expensing for machinery and equipment and factories and 15% made in america tax. he is saying, come to america, you won't have to worry about tariffs we'll give you low tax rates and deregulation.

>> i think two biggest points that matter to the economy and will matter to stock market, is one business capitall expenditures where businesses say with full expensing i'll vist in united states, mull flier on that money is better than multiplier on usaid funds, 4th quarter this year shows negative capax outside of structures, negative business fixed investment, it has to turn, second point is more import then the first, i think we're at beginning, of president rolling up his sleeves on a deregulatory agenda we'll see it soon a highwa hope on bank regulation, a huge stimulus for the economy and president with proper new choices at bank regulators needs to send signal they are open for business. larry: mickey bowman, vice chair for supervision.

>> i hope the reports of her choice are true, i know her, she is a friend. she has two things going for her, one is courage and other is convictions, she is there, she can hit the ground running there is no time to waste. our bank regulatory policies have been on the wrong track, small and medium side banks have no idea whether a imaginerr -- merger would be cleared. and larger spending billions each on compliance sift that is credit and capital that can go to real economy, if mickey gets chosen, she will be a great choice. and with other bank regulators led by scott bessent we could see a brand-new deregulatory set of programs and once markets focus on that, they will see better news. larry: nice for a new batch of bank loans, old fashion loans, help businesses. instead of d.e.i. and other

things. kevin warsh thank you so much we appreciate it. >> thank you, larry. larry: you bit. >> we'll talk with senators tim sheehy and markwayne mullin up next, we'll talk about tariffs, and talk about tax cuts, and talk about stock market with all of them, i'm kudlow we'll be right back. can a personal loan unlock your ambitions? oh yeah. consolidate bad debt and save money for your next goal. take a swing at your kitchen reno... ♪ meant that literally. ♪ or design your actual dream wedding. all your ambitions all in one app. sofi personal loans. low fixed rates. borrow up to $100k. no fees required. go to sofi.com to view your rate. sofi. get your money right.

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>> for years, we're not going to be ripped off any more, i'm not going to bend, trillions of dollars, is invested in the united states, now, that is because of the election results, because of the tariffs, and the tax incentives too, you know, tariffs and tax incentives. larry: that is good point. both very important. they go together, joining us now senators tim sheehy of montana and markwayne mullin of oklahoma, m m tariff

rate applied to product, 2022, interesting, india has average tariff of 14%. 14.3%. brazil average tariff is 12.4. china is 6.5. united states is 2.7. so, when mr. trump talks about how their tariff rates are higher than ours, and he would like a policy of reciprocity, i know that stock market is in a correction mode but reality president trump is right on this, and doesn't he have to do something about it, world trading system has been broken for years? >> free trade only means free trade for others, not america, a lot of those country, bake in tariffs in other ways, whether a vat or import or regulatory hurdles

that create trade barriers, we're leveling playing field so american companies can compete and win on the global stage. that is what we'll do with a fair landscape. larry: senator mullin, you are getting static from the stock market, corrections come and go. president said he will be stedfast in making his case, on reciprocal tariff policy, now, here is where i want to go with this, you can't imagine how those important tax cuts are, suppose you want to bring investment to united states, we're offering them 100% distr depreciation, and would be rotoactive to january 20, senator mullin, now, my point is, if you

will make these changes in our policies, and you will protect the home front and try to level the world trading playing field, the way that mr. trump wants, we have got to have these tax cuts right away. we can't be waits. you heard him today he put notice in same phrase, tariffs and tax incentives they did together, we'll bring people here with lowest tax rates in the industrialize world. but w what are y'all waiting for. >> well, we -- there are several things happening, first we have to finish the cr left over from biden administration, then we can look at reconciliation, to put permanent tax cuts in place. any business owner that has been in business wants stability, incentives are

coming but who does the road look like down the road? you have a regulatory environment that is conducive for your,? and access to other markets? they go hand in hand, if you have a good tack policy, and -- tax policy and free trade, because reciprocity tariffs great free trade. you have opportunities to axsys their markets if business owners know they have stability with long-term investment return and access to other markets with free or equal trade back some forth with tariffs you can have an envirowhere busn th can't can't thrive in u.s., we can compete with anyone in world wild excel. larry: that leads backpack senator sheehy, why are we letting grass grow on this? i heard today. in oval, is as though trump was asking for help. he talked about one big

beautiful bill. but he is coupling tariffs can tax cuts that say -- witwith cuts saying i'm doing my important in negotiating reciprocal trade policies, but he says you have to do your part you have to help him, give him the tax cut incentives that will bring that money here to the united states i know their there may be hundreds of reinces, i -- reasons, you cannot let the grass grow on these tax cuts, trump is asking you to get it done quickly, senator. >> right. we are. larry, i say we're not letting grass grow, we have confirmed presidential candidate at faster rate in over two decades and pressure system to maximum. thune has done a great job, chuck grassily ily told me, i don't think that --

grassley told me, thing that senate works this much. having cabinet secretary in their positions is most important thing to do to deliver on america first agenda, they have authority to reform in the eaf agency and work for american people, we're moving to cr, don't priority. what markwayne said, our american business owners and investors have certainty in our regulatory vier environment to invest more, we have seen bhil -- billions of manufacturing coming back could point taken, i can promise you getting tax cutting and job act to a permanent law, that is a top priority for us, getting there as fast as we can. larry: close to 2 trillion

dollars senator mullin. i don't want to lose that money, to some other country that might be cutting taxes before we do. and i come back to this point, i heard that president -- let run the tape. here is what he said about tax incentives and tariffs today. >> we want to vote for one big beautiful bill, we put taxes in and we put everything in, a big tax cuts, we'll have tremendous incentives for companies, coming in to country and employing a lot of people, this will be i call it, in a rare moment, one big beautiful bill. that is what i like. it seem bu seems to be that is where they are headed. larry: you know, it sounds like he is asking y'all for help, help me out. >> we're going to be able to

deliver for the president, sometimes he says one big beautiful pla gl glamorous bill, that causes problem if you go under current law, we're talking tax policy that creates a 4 triltrillion dollar deficit, if we use current policy that makes tack permanent. -- tax permanent and does not create a deficit. if you go to reagan economics we don't count tax cuts as a deficit we know that american people, american business owners and employees will spend that money better than washington, they will invest in, in our economy and will grow. larry: senator mullin hold that thought as an old reagan guy, that was a beautiful thought. on dynamic scoring and current policy, as senator

crapo tried to til to tell everyone, senator sheehy last word, sir. >> we're focused on america first economy that means, milton friedman, once said single greatest indicator to look at in an economy is what is the government spending, how much of gdp is government spending, our economy has been on a sugar high for a long time, and i think we're seeing here from this administration, and from congress, is redisciplining to ensure our economy is based on private investment and free market growth, not public sector spending. >> well said thank you appreciate it senators tim sheehy and markwayne mullin. >> coming up politics with my grinned, pal david webb. you can catch kudlow monday, friday, 4 p.m. on fabulous fox business, if you can't get us at 4, text your

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larry: joining he on set dadavid webb. you can catch david co-hosting b "the bottom line" with dagen mcdowell. thank you for doing this. i just want a thought, there is a lot happening, putin, maybe zelenskyy, improving meetings in saudi arabia, europeans maybe getting -- a lot of things that trump has launched may be taking hold right now, people won't give him credit for it. david: they will never give him credit, high is interested in -- he is interested in getting j jjob done, reverse this. what are they doing they are coming to trump at same time, he has nato coming to the table, he sits there

today in oval office, takes question like biden never could, you get almost a rehash of st saying thank you. they are stepping um. up, same time g7 is going on rubio is there, they are in canada. they are not the losing their minds, notice, they are shuttling in to see strength, peace through strength, and leadership that says let's get a good world, a safe world, a world without a war. or at least little conflict as possible, and economic prosperity, we'll all do business, look at business shifts, you have gone over this apple deciding we'll move 500 billion for you -- corporations are not making the decisions you know saying in 4 years we have to move it gain, they are thinking 20 or 30 years, we're investing a lot of money. larry: i say, you have two

trillion dollars of 4 invest am commitments to the u.s. since trump became president, that is a lot two. lay give them the incentives to make sure they follow through, let's give them expensing and low taxes, and you know productivity, and technological advances. david: the world likes the idea, most of do, of reciprocity. they like that idea that hold on we have resources and things we would like to do, same with latin america, leaders there want partnerships in the dominican republic, they want a working relationship,

not this constant addled behavior with globalists saying do what we say, we'll tell you how to afford it later. larry: charlie gas fa gasparino broke a story, larry fink of black rock acquired the chinese ports on the panama canal, that is will help mr. trump quite a bit. last few seconds. david: when this asset manager, the biggest said i'm doing this, why did it happen? why did they take that risk, notice signs, signs are no longer in chinese. america is back, baby that is the bottom line look at what i did. larry: anyway hats off david webb thank you. >> always. larry: i'll be right back with my last word.

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larry: that's it for kudlow, thanks for watching, folks. -♪ whatcha want, whatcha want ♪ ♪ whatcha gonna do ♪ when the sheriff john brown come for you? ♪ -officer: you better stop! -♪ bad boys, bad boys

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