it's kind of what larry's been saying cnbc senior contributor larry kudlow does join us with the latest>> one point on this, yellen had lunch today with gary cohn after the meeting with president yesterday. i try to read the tea leafs like anything else. >> i thought it was a monthly thing. >> she meets with him all the time the idea is was she was called back for a follow-up interview but in fact this is a semiregular thing. >> semi. semi. >> can i ask a question to get you started? i wouldn't disregard that. a ban from the white house that's all i'd say. >> let me ask you a question. >> yes >> what is the probability he picks taylor i would put it as zero or close to zero. you know a lot more about this why are we even talking about him, why aren't we totally focused on powell at this stage? >> we're talking about him -- >> what am i missing >> you're missing a brilliant guy. you could learn from him. >> nothing to do with that >> go back and read his blog and learn something from taylor. >> a president who basically marked the success of his administration on the stock market and the

larry, always a pleasure thank you so much. >> thank you. >> larry kudlow.ally come thursday. >>> the deadliest wildfires in california's history are still raging coming up, we'll speak with a brewery founder in santa rosa, a mile outside the evacuation zone, about the impact on her business so far. >>> first, there's no love lost between call co between quco a alealmmndpp on the patents. the two tech companies are at it again. we'll have the latest on their legal battle next. that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, i'm an outdoorsman. so i've asked chase sapphire reserve cardmembers to find my next vacation. chile, what's going on? i'm at the el tatio geysers. geezer. geyser. geezer. geyser. enough. geezer. whoaa, wooooo. d

>> we haven't seen details but look, it's structured based off a theory if i listen to larry kudlow,'s all theory, theory, theory we need to eliminate the theory. we live in an active age if you want to help working class workers or families, you reduce payroll taxes payroll taxes is a tax on every hour that we work. it still has to support medicare and social security. you have to find it by eliminating deductions in some other way from the general fund. if the goal is to increase wages which haven't increased in 20 years, that's the way to do it if part of the goal is to get not just money repatriated but also to get companies to move here or stay here, instead of just saying we're cutting our corporate tax rate to 20%, why not go to the fortune 500, the ceos, why not go to the most profitable 5,000 companies in this interactive day and age, say put it in your spreadsheet if i get you this tax rate, 20%, i want a commitment that, a, you're going to increase wages by x% for your hourly employees, or b, you're going to commit to whatever it is we think is going to improve the economy

rates at all during that whole period >> i want to make myself number one or number two in the larry kudlow been. >> number two? >> well, number one or two i don't know, maybe i believe his fabulous wife is number one. but let me just point out. larry, i'm with you on a different framework. i'd still like to know how that framework would lead to a different rate structure than we have today the way i see it, for what it's worth, is the apple cart's kind of going along on this little rickety path we're on here i wouldn't do very much right now with this gradual reduction of the balance sheet, these gradual rate hikes, to really upset the apple cart very much >> i -- >> i don't know what that alternative framework would yield. >> you want to know the truth? the truth is i agree >> okay. >> the truth is, things look, to me, about where they ought to be as this growth trade moves ahead and the prospects for the tax cuts look better okay things look to me about right. it's funny so, no, i don't have any particular -- >> what do you do with a taylor model that would give us 2%, 3%, 4% rates right

larry kudlow is sitting here next to us with more reaction. >> kaplan and kudlow was this -- was mr. kaplan's idea that the connection between wage rates and inflation, is that breaking news i mean, yellen -- yellen in her speech two weeks ago said it hadn't worked in 20 years. my only difference with miss yellen is it hasn't worked in 40 years. that's all i'm glad wages are -- >> larry -- >> it's not inflationary. >> reporter: the news is maybe not among the people such as yourself who have been so smart for so long but among policymakers who have begun to think about this whole idea here of whether or not this phillips curve, connection between wages and inflation is really working and there's more doubt about that than i've ever seen everybody should read the speech from brookings yesterday or two days ago, he said, you know what, with e don't have a fo formula for predicting -- larry, i know you have a different way, you can take the floor or argue on that. >> i'm glad the fed is coming to its senses i think the economy is improving. i think the wage situation is improving. labor

. >> lets bring in larry kudlow >> you had the benefit watches general kelly there.e's an ambimable guy clearly i control and knows what's going on and a level of sophistication that those of us in the media cannot see all the time >> i basically agreed with you and john i would like to meet him he was kind of a character he has a sense of humor. >> yeah, yeah. >> i think that's terrific it is kind of a welcome relief i would say this though, perhaps mother or fath more of a serious thing, watching this and i did not see any space, tell me if you disadpre disagree, i did not see any space between general kelly and president trump. it looks to me that this is a unify front and i think that's healthy and a positive thing >> i agree with you there. >> i certainly did not what i did see was perhaps a little more context put around some of the statements that the president has made either on microphones or via twitter i felt a little bit more of a rounding of what can sometimes be perceived of being hard and aggressive edge that atentends o many of the president's comment

there is a couple of news there, larry kudlow, when are they going to focus on taxes? we are going to do that as soon as we finish taxes >> i got to give him credit. he made a lot of speeches. melissa was telling me during the break, john mccain is going to vote on the budget floor. you cannot have tax cuts and cannot have reconciliations and instructions for tax cuts. if mccain is going to vote for it, that's a big one i know rand paul -- trump played golf with them and he can be r persuasi persuasive you got pretty momentum for tax cuts senator gregg, do you agree? >> yes, i agree with larry i usually agree with larry once they complete the budget situation, i am a little concern to be honest about it. they're doing a tax bill on a purely bipartisan base it does not look lilook like th want to come to the table. they got to use the tools they have >> jack, bipartisan is always better, i adpr agree with you a that >> on the other hand, you could not get four democrat senatorses >> you are talking about healthcare or taxes? >> on the full budget resolution >> you may g

larry kudlow is here welcome back to barbara. his morning larry says i love you. with all -- >> then you say these horrible things >> moderate raltly horrible, but personally the guy is first rate >> he knows nothing, but he is really nice. >> it's skrg a communist perspective on the show that could be useful. >> exactly anyway, thank you for being here appreciate it. larry, we're going to need you today, my friend this is "squawk box" on cnbc live from the nasdaq market site in times square. a lot happens when the cameras aren't rolling it's the same kind of thing. >> only war. >> unhinged. i'm joe kernan along with becky quick and andrew ross sorkin we're less than 30 minutes away from the september jobs report, and an exclusive interview with dallas fed president robert kaplan that should be good, right right after the -- >> it will be great. >> right after the jobs report it will be good. here's what economists expect. nonfarm payrolls are expected to rise by only 80,000 due to the impact of hurricane shar have i, hurricanes h

lets bring in larry kudlow >> does this look very republican at the moment there is the death tax andut and corporate rate over several years instead of immediately and where the growth would happen >> that's key. republicans have made the mistake before if you phase in the corporate tax to 20%, they're talking about 3% a year over a 5-year period >> reducing it 3% a year, 35 to 20 >> that's correct. >> trump opposed to that, good for him. he told that this morning according to news reports with his meeting with the brt and the chamber. in 1981, reagan, i was there, we had 70% to 50% and it was phased in over three years. the full effect of that did not happen until 1983 and that's when the economy took off. bush w his tax cut of 2001 was phased in over seven or eight years it was not a bad tax cut but nothing happened until they accelerated and brought it forward to 2003. in which case immediately the economy took off and had about a five year boom until the financial crisis lets not repeat that mistake people are not going to pull the investment trigger until they get the lowest pos

trump's head 12k3w4r thank you, larry >> larry kudlow. >> shares of whirlpool are leaving investors feeling a little sunk today they're down over 10%, we'll tell you why after a number of tough years for brick & mortar retailing, are we finally, actually, sort of kind of near the bottom for retail, ithe reaiinors ermo pn store? we'll find out power lunch returns right after this looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. >>> today's power rundown focuses on retail. there are three big topics to hit with courtney reagan, who's live at the ceo summit, a bunch of big names from fashion and retail are there a big interview, you caught up with the chairman of saks and hudson's bay >> yeah, that's right, a lot of talk at this conference is about department stores and the future

larry kudlow and i wrote about this, three easy pieces, in the end of the day somewhere around 20% corporate rate, hopefully it won't, but might go a couple of percentage points higher than that. that really is heart and soul of the plan. everything else, in my opinion is kind of window dressing. this is about getting those business rates down so we make america more competitive in the global economy and then the repatriation, and that's a no-brainer, probably do a deem repatriation, all of that money, pay tax on it, and double the standard deduction and i don't think they'll be able to do anything with the rates. i don't think the rates are going to change. and that means, you know, we might be something for everybody just to think about it, might be a duplication of what reagan did. reagan did the tax cut in '81 and then after he did his tax cut and then they did tax reform, 80's so that's the kind of way i would see this working out. how they get to-- how they get this squeezed in, even what i just outlined, that's still a pretty heavy lift to squeeze that into-- >> and it doesn't-- we wi

larry kudlow and i wrote about this, three easy pieces.t the end of the day they'll around a 20% corporate rate. hopefully it won't but might go a couple of percentage points higher than that. that's the heart and soul of the plan. everything is ill -- everything else is window dressing. it's about getting business rates down to make america more competitive. then the pepe tration, that's a no-brainer. bring back a lot of money. and they'll probably do a deem repatriation. all that money, whether they bring it back or not they'll pay it.x on that raises about $200 billion. they'll double the standard deduction and i don't think they'll be able to do anything with the rates. i don't think the rates will change that means you know, we might be, something for everybody to just think about, it might be kind of a duplication of what reagan did. he did the big tax cut in 1981. and then after they did his tax cut they did tax reform, what was it, 1986, so that's the way i see this working out. how they get to -- how they get all this squeezed in,

larry kudlow. look who is leading it? mnuchin who supported democrats in the past. gary cohn is a definitely a democrat. neil: a lot is watered down. >> my faith is not in those guys. my faith is donald trump steps in that says you have to do something bold but doesn't look like it is going that way on individual side. >> good news, we're evolving into something smarter. i did not like the border adjustment tangs. >> that was statists thing. neil: 1.5 trillion for tax revenues lost and cost of this thing. neil: you know numbers better than i is five trillion, they haven't found growth to pay for extra trillion out of that, where do they come up with the other 2 1/2 trillion? >> i know gary cohn and steve mnuchin, worked them for years, they are believers in growth. they to not worship at the altar of cbo. neil: they do not worship at the altar of supply-siders. >> a state and local taxes and couple of sacred cows -- >> i would just say this, gary cohn is a liberal, okay? if you're trying to say that a lib room is going to push through the greatest supply side cut ev

larry kudlow and i wrote about this, three easy pieces.t the end of the day they'll around a 20% corporate rate. hopefully it won't but might go a couple of percentage points higher than that. that's the heart and soul of the plan. everything is ill -- everything else is window dressing. it's about getting business rates down to make america more competitive. then the pepe tration, that's a no-brainer. bring back a lot of money. and they'll probably do a deem repatriation. all that money, whether they bring it back or not they'll pay it.x on that raises about $200 billion. they'll double the standard deduction and i don't think they'll be able to do anything with the rates. i don't think the rates will change that means you know, we might be, something for everybody to just think about, it might be kind of a duplication of what reagan did. he did the big tax cut in 1981. and then after they did his tax cut they did tax reform, what was it, 1986, so that's the way i see this working out. how they get to -- how they get all this squeezed in,

, good to have you here the president was insistent and he was asked repeatedly as we had with larry kudlow not running for re-election. is it possible he loses those votes and threaten tax reform, what do you think, sarah >> i do think it's possible he loses those votes and the way he behaves toward them isn't helping had the situation. look, when you're leaving office, you're thinking about your legacy. you're not worried about the next election, and so if you're mccain and your brand has been primarily about the military and also about deficit reduction, that's on his mind right now in a way that, you know -- you know, flake and corker and these guys all of whom are not going to be in office after their next election possibilities, i don't think -- i don't think what trump is doing is very prudent >> you know, there is a lot of talk about this gop civil war, but let me flip it if you belong to a club and you're the leader of the club of 51 members and most go along with you and two don't guess what those two that don't go along with you, they're leaving and they will be replaced with peo

would know that's -- i'm not saying it's ill-informed, i'm going to use what my former partner larry kudlowd to say, with all due respect, which basically meant, come on -- >> i'm coming at you. >> come on, man, they do that on espn they say, come on, man. >> treasury secretary said without question and i would echo your comments, i have lots of questions about that statement. >> you spend a lot of time on conference calls i spend a lot of time talking to investors. i don't know, you could make arguments whether or not this market effectively prices in risks that are out there or that multiples may be too high. i know you and i may go back and forth on that. but it does not come up as one reason why people are buying stocks right now now, will i tell you -- as i have when i report on the prospects for it that a number of companies have sort of given up the idea of tax reform this year and moving ahead with their strategic plans, only to perhaps stop briefly now that it is in play again, yes. but does that really mean there's a large premium in the stock market because of people's belief we'

the one thing i will say is this: donald trump did not run on, you know, he liked larry kudlow and art laffer's plan which brought down the rates, but he really ran as a populist. and he wants a run here. neil: yeah, i don't think he's supply side. i want to bring in heather no rack coe on this. -- morocco on this. if you had to handicap where this whole tax cut thing is going, what do you think? >> i think we will get something done by the end of this year. i think that corporate rate is very important from a market standpoint and giving investors what they want to match some expectations that we've had whether you believe the market is propped up all on the basis of tax reform since president trump was elected or not. you've got to agree that some of it was. neil: so let me ask you, charlie, i quoted this item in barron's over the weekend that said the bull wasn't born of tax considerations, and it won't die from lack of tax relief. in other words, this market rally will sustain itself and won't tumble if this thing doesn't materialize. >> i don't know. i think that was -- i think th

i mentioned larry kudlow i hate twitter, but i did see on twitter that larry said this is the best economyn ten years. so the new consensus i'm starting to think is maybe this is sustainable why do you think it isn't sustainable now? do you think this current quarter we're in will be a big disappointment . >> this will be the longest expansion in american history and one of the reasons is it's been so tepid. you will see fits and starts in 2014 everyone got all gung ho the global economy was picking up everything was doing well. the u.s. economy had much better quarters than it just saw on a back-to-back basis in the second and third quarter of the year then it fizzled. it fizzled because the federal reserve began to move away from accommodation. the front end of the curve moved up the curve flattened, we're doing exactly the same thing now the combination of that with the fact that we're most likely to get a new chair at fomc, and every chair is tested to see if they'll have grades, i expect we'll see this go forward as this curve flattens to a pancake. that will pull the economy back dow

we also have kudlow versus fuhrman, which is always interesting. larrys funny, he goes i love you and respect -- then he lays into people. >> did he that to me, too we have a debate over gender pay gap. >> it's endearment >> i try to do that. just saying with all due respect doesn't always -- somehow larry -- i love you, then boom you only hurt the ones you love. nelson peltz, extended interview in what is the most accrimoniou and longest running proxy fight ever that will come to some type of resolution on october 10th. >> tuesday >> i can't believe it's october. i can't believe it's 2017. i can't believe any of it. i can't believe it's the fall. i can't believe people are back to school. i just can't believe how quickly the years are going by, sarah. >> go to starbucks, it's pumpkin spice time your taste of fall >> i'll try that pumpkin spice. thank you. >> thank you very much the "squawk box" team is coming up next. up next on this show, the countdown is on to the big jobs report we'll talk expectations. that's all cinomg up next when "worldwide excha