that single issue that she will follow him on board but they can afford to lose to lose but the larry kudlow know him pretty well known economic commentator republican one of the president's why is this is such a difference going on here let me. well you know larry is great and i think that he . has a lot of insight on this so what i would say is clearly in some places you know if you live in california larry as you and i do you live in new york you live in states that have high state tax burdens if the state and local tax deduction is eliminated that's going to create some challenges certainly for people particularly in the upper middle class and the upper end of the income scale in states like california and new york and then you look to other provisions as well for example what they've had to do to curb some of the tax preferences around higher education i think that will create some challenges as well the question though larry fundamentally is what's the goal here and i think republicans would say look the goal here is to lower tax rates across the board broaden the base of taxation beca

it's hannukah now, christmas in two weeks you're giving us a message of hope where's tiny tim larry kudlow, hope you're right. larry, sir, thank you. appreciate the insight as well. >>> you know, we're going to trade it but first credit suisse notes there's no industry with a higher effective tax rate than retailers. they have almost no deductions higher retail sales, lower taxes. could you see the retail boom? >> yes, but i don't know how to trade it you tell me where that retail sales are actually going to happen we had a 2.5% month-on-month nonstore retailers. >> online. >> we call them nonstore just in economic jargon. but i think the consumers have been spending. i think saying the consumers is not going to spend has been a bad trade. figuring out where the consumer is going to spend is a more difficult proposition. >> if you figure that out, you let us know. >> i tell them consumers are going to trade. >> by the way, on a separate note, can we stop calling amazon an online retailer they must have more square footage than any other retailer. jon najarian, a note saying the stock marke

i think even larry kudlow might think that's going a little too far. >> larry, what do you think?> well, look, i don't agree with john on a lot of this first of all, regarding russian collusion, some of the leading democrats have not found that. they're looking for -- they're looking for misstatements or lies they're not looking for trump and colluding. his staff may be another thing we don't know that regarding trump's grasp of policy, you know, i think he's very underrated on that. that's all i'll say. i've been in a room with lihim whole bunch of times for quite some time. he knows stuff he studied stuff he listens very carefully. on the bipartisan thing, look, if the democrats had wanted to sit down at the table in early 2017, there were plenty of opportunities. including on health care, i might add. i mean, as someone who was involved in the tax discussions as one of those who put it together, but as the thing evolved over the course of this past year, successfully, there were times when the democrats sounded like they wanted to play and then they pulled back. so i just -- i

that there's going to be some difficulty tradeoff so those trade offs are difficult ones i think larry kudlow is absolutely right and that's why the politics of this remain very difficult and challenging even as we go up to the wire here on a potential vote in the senate and then the house by the end of the year we're going to have a lot of the big. moves. should do. more have dropped is he going to win what's your read on the whole thing. you know if i had to read the tea leaves larry i'm going to be honest i think that he probably will win and the reason that i'm going to say that is because the polls right now show the doug jones is polling about one percent higher which is so close to that margin of error but these polls are the same polls that were showing that hillary clinton was going to win by ninety one percent so my point that i want to make to make this quick is that i think there are a lot of voters that are and barest when these pollsters are calling i think there are a lot of voters that are embarrassed to say that they support roy moore so i think when the polls actually turn o

. >>> let's bring in cnbc's contributor larry kudlow and chris lew, former deputy secretary of labor ent obama. gentlemen, good to have you with us larry, i'll start with you it will be a big day tomorrow at the tax bill signing on the docket already bull there. >> i will. >> why is it that the american people aren't convinced about this tax bill when you look at the polls? >> well, it's tricky polls are polls. depends how the waiting goes, republicans versus democrats. i think this will sell itself once it goes into place. that's the important thing years ago with reagan people were not persuaded until they were persuaded reagan wasn't reagan in 1981 he became reagan in '83 and '84 when the economy exploded. it's very exciting for a guy like me working on this for a couple years with steve moore and steve mnuchin. i'm glad i'll be at the ceremony this is the biggest tax cut on the business side i reckon in history. maybe i'm wrong there it will have a powerful effect we're the on from end of a big investment boom which is going to helpevery single working american and will create eve

larry kudlow, one of the president's top outside economic advisers, seems to agree. >> when you wantate and local tax deduction, for example, well, because rates are reasonably high, relatively high, that's going to hurt a lot of different people. you follow? so the internal logic was not good. this is not a true tax reform bill. >> a study of top economists show of the 42 top economists polled only one thought the bill would boost the economy. senate leaders announced they will hold no more votes on the tax bill tonight, will hold the next votes tomorrow morning when they think they're going to head toward passage. wear joined by former maryland democratic congresswoman by nearby here, donna ed wars. sofia nelson, nbcnews.com. sam stein, editor at "the daily beast," msnbc contributor. one point of news. tomorrow, right? you have the 50? >> we don't know if they have the 50. it seems like they should have the 50. >> who's definitely off? anybody? >> no one's definitely -- >> johnson? >> no one's definitely off. there are a couple based on their concerns of the deficit, a couple of ho

and there is the idea of optism where we are in a business friendly environment larry kudlow addressingier if trump is in trouble, that may damage the republican party larry said that with us earlier at 12:00 on our air here >> the important thing right now is this is been an issue before and it is back again remember may 17th? the dow dropped 300 points of the exact same thing there is the month of may. this was on the surfacing of reports of the comey memo. the investigation of michael flynn. looking at the market right now. you have to conclude that whatever new issues we have to deal with around trump's legal issues there is still plenty of juice left in the whole tax cut issues this one keeps moving the market and keeps helping them out week after week >> guys, back to you >> robert, stay on your post it is going to be an interesting afternoon. lets get more from dc to michael flynn and to moore, hugh hewitt and senior white house colu columnists for the hill. folks, welcome hugh, let me start by asking you of the flynn agreement here. how damaging do you think this could be to the

. >>> after the bell, we know c c cnbc's larry kudlow has been a proponent of tax reform.s tethree things he hates about this bill. >> uh-oh. >> coming up we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that. can we do that? ♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, pr

welfare, social security, infrastructure, something else larry kudlow has some ideas.with his advice to the president. >>> plus, california has grown faster than the rest of the nation since the recession now many in the state are planning to move in part because 'lhahe new tax law wel ve all those details when we come right back. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley ♪ ♪ ♪ ♪ what we do every night is like something out of a strange dream. except that the next morning... it all makes sense. fedex powers global commerce with vast, far-reaching networks... deep knowledge of industries... and, yes... maybe a little magic. ♪ well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>

joining me now, dan clifton, and cnbc contributor larry kudlow.think of two better people to talk to about this right now. dan, let me just start with you because what are the final -- what has changed today other than the child tax credit as you understand it? >> so the child tax credit was one of the last issues they needed to deal with. most of the work was done yesterday, kelly they have a new income tax rate structure at 37% the corporate tax rate will come into effect immediately at 21% a lot of changes to the international rules. i think there's going to be some companies that are very happy with the interest deduction on worldwide income goes away but let's say what does this bill do it is now a front-loaded, pro-growth tax cut that is about 1% of gdp. two weeks ago -- >> yeehaw. >> -- the senate bill was .4% of gdp. throw in the kudlow supply side effects, get 1.5% of gdp in 2018 from this and we think the bond market is misreading how pro-growth this tax cut is. >> okay. before we get into that, actually sort of related to it, dan, i und

waiting to happen but i'm very optimistic and i put my faith in people like stephen moore and larry kudlow who really know what they're talking about in my view and are good friends and they're touting the economic growth in this very very highly susan weigh in on this you've got a rebuttal to steve would say we tried trickle down before it's been proven to be a failure i don't see why we think this is going to be any different we have states like kansas that tried cutting their taxes drastically we're faced with budget shortfalls unable to provide public education at the levels that they need to this is the path that we've seen happen in reality when tax cuts this is not the area this is real outcome when you cut taxes jobs don't come trickling down as promised and in fact we even have c.e.o.'s who refused to raise their hand when asked by gary cohn whether or not they would create jobs after receiving these tax cuts instead we know that they're just going to have dividends for their shell shareholders increase or buy that their stock this is what happened when there was a repatriation ho

first of all, we'll introduce you, you are here, larry kudlow along with editor and chief of the hill like this and if you have held stocks for a long time and maybe you bought in all different price ranges, you got to sell the oldest stuff first which you hope gone up in values the most and tax bill is higher. >> it is a back door capital gains tax hike what makes it bizarre is mutual fund having a huge group there it is the individuals. it should be equal in my opinion. it is adam id dumb idea, i don't to raise the capital gains tax i want to lower it these kinds of glitches are going to be worked at. i am in favor of this bill if i am voting, i would vote for it principlely because of the work side. >> was this a deliberate, thoughtful move on the part who ever put it in knowing it is going to raise revenue >> you know what the estimate is >> 2.7 billion >> that's a sneeze >> no model can be that accurate they're going to lose revenues on this and not making revenues. that's a history of capital gain i know the senators putting this bill together, he's going to finish off by gettin

i believe larry kudlow earlier on your station was speaking about the fact that if you look created and00the 3.3% gdp growth last quarter and look at what companies are looking to do with that capital, you can see some substantial investment in the year to come which will lift wages, tighten the labor market, which will require company security for employees. that natural weightlifting will be a net positive -- wage listing will be a net positive. that is how you create growth in this country. if you look at the growth projections relative to the tax plan, i would take issue with what the cbo did. the underestimate growth. you are talking about over a 10-year projection. if we wanted to talk about the debt, i would look back at the government's spending spree that went on over the past 10 years. give you look forward, i'm optimistic for the future of the country. shery: that is all the time we have now but thank you for joining us. congressman ryan costello, republican of pennsylvania. in overnight breakthrough divorce talks between the u.k. in the eu after a month of haggling. with there

i worked with him and larry kudlow and a couple others to help put this tax plan together, at least thenal campaign version. we had many meetings with donald trump. in all honesty, he was extremely knowledgeable how it worked, how it affected small businesses. especially on the business side. he understood the nuances of the tax system. and he also understood why the system was really working against the united states. starting january 1st, this is going to change. but we have the highest corporate tax rates in the world. that was disabling our economy. so, look, i think this is big victory for trump. i don't know if he's the smartest cpa in the world, but i think he understands this stuff very clearly. >> okay. let's talk about a "washington post" op ed that actually called you out yesterday. jennifer rubin pinning this one. never before has such a pointedly partisan tax bill been cooked up to punish people who generally don't vote for the party in power. heritage foundation economist stephen moore, who worked strenuously for the bill, stupidly commented. odd for a scholar from a tax-e

i think the winner was larry kudlow >> yes yes! yes! yes! yes! over. >> what was your number sno. >> >> oh, come on. you got to give me you got to give me credit. it's my best showing in 15 years. >> give him that he deserves it >> i got to hand it to you, you are consistent. >> they're going to be because of trump's predecessor >> at least you're very -- at least you're very consistent with how that lines up >> i'm consistent on the facts, but, joe, it's the holiday season, and i came here, and i promise i'm not going to get in an argument with you today >> you said something about turkey basting you tweeted something about -- you are a better turkey baster therein i was. i saw that tweet i didn't know how to respond to it because you were using the word turkey. you remember that? what were you talking about? >> i'm going to challenge you to a turkey-off a turkey cook-off. paul volcker can really cook a turkey i challenge you. >> i have done that interview every year, and you don't want to pack it like -- >> i want to pick up on the holiday them

committee speak out against something that suddenly has become so controversial, what our own larry kudlow said was the dumbest thing i've ever seen. >> the said and local income tax elimination i think is dumber than this and it does disadvantage individual investors who won't be necessarily able to arrange how they take capital gains and offset lossers and also it may be forces people into mutual funds. -month managers will be able to continue to sell what they want when they want and they want to make changes. >> nice to have a big lobe and they were lobbed into this as well until they get themselves removed from it. >> they were facing the same thing. so many things that i think disadvantage individuals in this, and this is a smaller component of that, but it's still in some ways patently unfair in a individual investors because they are looking for increased cap gains revenue, they couldn't get this by changing the way in which you invest in 401(k)s. they switch over to the way you buy and sell stocks. >> the number of people who reached out to us, twitter or otherwise and comment tho

whether that controversial part of the plan will be in the final bill or out you know what our larry kudloween reporting over the last 24 hours plus, calling a bottom in under armour that stock beaten up is it finally a buy? one firm thinks so that's why we've made it our call of the day. morgan, we'll see you in about five minutes. >> sounds like another action-packed show looking forward to it. all right. still ahead, "the last jedi" hitting theaters today and the latest picture already breaking records. the numbers when "squawk alley" returns. ♪ [vo] progress is an unstoppable force. the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. >>> it has been a big week for disney and they are not done, the latest "star wars" film officially hit theaters last night, already breaking some records. at least for 2017. let get back to julia boorstin for more on that hey, julia. >> reporter: carl, last night "the last jedi" grossed $45 million in north american theaters, the second biggest thursday night openi

with us on the desk today to talk about how all of this impacts your money, joe, mike, larry kudlow is also with us on the phone. before we hear from the gentlemen at the desk in front of me, larry, you were communicating with members of the senate on the tax plan when the news broke about mike flynn. >> yes, i've spoken to a couple of senators. they got -- on the tax thing, can i start there? they have 50 votes, basically the bill is not going to be changed. the corker issue is -- the corker issue with respect to the trigger is gone. and nothing else has changed the corporate tax will good to 20%. 2019, which i don't like, probably will be changed in the house and senate conference, but they say they've got 50 votes, both senators, both of them in the know and both in this conference meeting nothing is changing now. they don't need corker they may or may not get flynn -- flynn, sorry they may or may not get flake. but they have 50 solid that's what i'm told and then things will go to conference >> there seems to be a significant development regarding one of the apparent hold-outs, tha

. >> the first in first out thing, you know, larry kudlow called it the dumbest thing he's ever heard. >> there's a lot of things about this tax plan that are being discussed that are troubling to me the kind of micro management of it is troubling to me. this first in first out thing, they are trying nickel and dime, find ways to squeeze yet more money out of investors and out of people like me, and i -- i don't mind paying taxes. i actually feel it's a civic duty to pay taxes and what gets my goat and stan duck miller was on with kelly about the carried interest and how many times did president trump are the talk about the unfairness of the carried deduction did, it a lot, one of the talking points on his stum stan used the word offensive i couldn't agree more. it is just unbelievable to me that that survives the context of trying to have tax reform beyond that, you have this idea of the pass-through rate they specifically call out investment management businesses as being a service company that cannot do the pass-through it is the surgical nature of this you're a hedge fund billiona

negotiating tool is that part of this somehow i mean, if everybody thinks it's ridiculous from larry kudlow on down, then -- and schwarzman yesterday talking about the confusion on why some of this exists, maybe that's something we're using as a chip or the republicans are using and they will pull it out. >> here's what nobody is focused on i would say with the deficit -- i stayed -- i sound like josh, sorry. i would say -- >> is that the most important thing you're going to say today? >> the deficit putting up this tax bill, there's virtually no chance of an infrastructure bill unless it's all private. >> you know why, steve, because the one thing nobody is talking about the fact that you need to control spending at the federal level, and that's like not on anybody's radar screen. >> you know what none of you are talking about, it's time for a break. >> yes, exactly. >> i had something that was really important. >> i'm sure you really did. >> that nobody else is talking about. >> up next, steve is tracking bullish activity and one drug store stock down 15% this year the reveal is exin "hal

controversial provisions in the tax plan is out, that is the so-called first in, first out rule our larry kudlow reporting, as we've told you in the last 24 hours, that it doesn't appear to be in the final bill, but as you noted there and hearing from the representative things are in flux j.j. kin han, the market strategist at td ameritrade has been leading the charge on behalf of the brokers to remove it and joins us live from chicago. j.j., good to see you again. >> scott, always a pleasure and thanks for leading the way on your show about this for the average retail investor. >> well, larry says according to his sources, and it's a handful, that it's out. now, we know that things are changing behind the scenes quite off. what are you hearing today >> well, you know, we heard it it was out also, but i think there's something very important to consider and you touched on it right there senator rubio is signing on because they are raising the child tax credit that's great that money has to come from somewhere, although, you know, i'm going to say it's only 2.4 billion over ten years if they put

larry kudlow is talked about as a replacement for gare cohn. >> these are not dummies. >> this is likert food. these are the guys he trusts. these are the guys -- the question is these guys also have a lot of enemies. there are people who if corey lewandowski gets very close to having a senior job in the west wing are going to do everything to block it. >> i thought these guys caused him a lot of trouble along the way. the round table is sticking with us. up next these three will tell us some scoops we'll be talking about through christmas. up to a gillette shave. and at our factory in boston, 1,200 workers are starting their day building on over a hundred years of heritage, craftsmanship and innovation. today we're bringing you america's number one shave at lower prices every day. putting money back in the pockets of millions of americans. as one of those workers, i'm proud to bring you gillette quality for less, because nobody can beat the men and women of gillette. gillette - the best a man can get. bulletin, cathleen and i are heading to a far off adventure and i'll tell you where

republican side to come on this program and tell our viewers about this fifo provision, the one that larry kudlowaid was the stupidest thing he's ever seen, called it a back door capital gains tax. not a single representative of the senate finance committee has accepted our invitation to discuss this important issue. >> whoever -- >> somebody put it together. but who has read it? >> but they don't know it's going to stay in and why would somebody come on tv and defend it >> we made this point when larry was on the show. who oer who on earth would say we have to have this they are lifting up couch cushions to find a billion here and 3 billion there. that's how something like this gets in and there are sacred cows harder to keep in than this and we don't know if it will be in the final. >> they know full well about the controversy over it because the mutual fund lobby. >> yeah. >> don't forget sxwlsh they got themselves exempted. >> only individuals are now impacted by fifo. >> individuals that work with -- individuals that work with a financial adviser who is a fiduciary have to at at bare minimum

. >> larry kudlow who you know well, he's worried that the president is going to pull out of nafta veryit. is he? >> there are active negotiations going on you should have bob on to talk about the state of those >> would it be bad if he did that >> people have said over and over, that i've talked to, that the negotiations are making progress and everybody is hopeful that they will reach a positive income outcome. >> will it be bad if the u.s. pulls out of nafta >> nafta has caused some harm and some good and everybody is hopeful that it will end well. >> we going to get a trillion dollar infrastructure plan snl dispinted so far. >> i think the president was right to prioritize tax reform and if you look at how close it is to the end zone, we'll have a tax bill hopefully in the next week or two and then it's important to move on to our next priorities which are going to be welfare rerm form fixing that at the beginning was the right judgment of the president. >> are you very confident that it happens in the next week or two, before christmas? >> i'm not a political analyst i'm just an ec

>> lets bring in our senior contributor, larry kudlow, gentlemen, it is good to have you here i am guessingried as are a lot of constituents in new jersey everybody is saying this is going to be an assault on new jersey and another nail in our coff coffin, we cannot afford this attack in jersey and they are eliminating this whole thing on our backs is completely unacceptable >> have you done any estimates of any analysis and what percentage of the people living in new jersey now detukt their state and local taxes and once all the changes go into effect how many of your constituents would be affected? >> what percentage >> it is about 60% currently it goes down a little bit of the standard deduction but not much. >> we know in new jersey, their taxes will go up $5,000 in the first two years. that's a couple living together in new jersey. that's how big of an impact it will have on people. >> i am al new jersey resident and has is tyler i want to bring in larry in a second here. i want to continue on this, i had this discussion with a friend of mine and his other concern is not only the stuff

the end of this year >> you might see a wave of selling between now and year-end it raises, as larry kudlow p says >> $2.7 billion over ten years >> that is a sneeze. >> we are one firm with 1 million client accounts. >> what does this do to your internal accounting? >> that's the problem. there are some etfs which would qualify as exemptions. basically, you have to figure this out if you are a retail client of course, we are going to help them with that exercise. it really is just no the a clean exercise for something that is so small we are supportive of the tax proposal in general. this provision for wall street and main street investors is inevitable >> the thing that would be most galling to the individual investor is that the portfolio pl manager of the mutual fund doesn't have to abide. it encourages you to go to a mutual fund than individual stocks which you are pushing them to adopt a behavior that may not be in their best interest >> one more knit to pick >> if brian sullivan sells a stock. i get whacked. mutual funds are exempt. do we know if brian sullivan offer melissa lee sell

it's -- i think we're -- i think we are there i think we're on the cusp of an investment boom as larry kudlowt, i think this tax cut is priced into the market and if we don't do it, i think the markets fall and i think it leads to lower investment, lower capital investment in fiscal 2018. >> go ahead. >> i was going to say the source of your frustration seemingly the senate clearly, they are with one ear, at least, listening to various constituencies, concerns about perhaps the implications or maybe the unpopularity of the bill do you think that those political concerns are going to be overcome? do you think they're legitimate in the first place >> well, i mean, i do think they're legitimate tax reform affects everybody it impacts more people than anything congress has done in the past five or ten years i think that this is important but i also think it's important to show the american people that the republicans are going to use the majority to pass, you know, pro-growth, pro-economic growth measures and i think that we need to do that to show, you know, why we should be able to stay in the

joining us now larry kudlow, who is here in studio. senior cnbc contributor. steve liesman.nomics reporter who was front and center i was so impressed with that i spoke to greg. there are signs that late yellen and early jay powell will leave the spigetts more open to see if the supply side investment tax cut works. that's good. i like that. especially with steve liesman smack in the middle of the picture. >> i haven't -- you guys can talk about whatever you want to talk about, but i haven't seen you to tell you about my latest atlanta fed thing. 3-3. that's what i saw a couple of days ago >> it's a little outsized for the street >> okay. but that was -- >> the actual cnbc rapid update, which is the official tracking forecast of cnbc is 2.6. >> the athletes are forecast -- >> the -- no, no, no this is what we do, joe, is -- we've actually proven ourselves to be more accurate than the atlanta fed is we're at 2.6 because we put together all of the forecast >> we don't get through straight three's. >> look, joe, two after the last two quarters, is a huge victory, right? i would

that there's going to be some difficulty tradeoff so those trade offs are difficult ones i think larry kudlow is absolutely right and that's why the politics of this remain very difficult and challenging even as we go up to the wire here on a potential vote in the senate and then the house by the end of the year we're going to have a lot of the big. moves. should. more have drawn is he going to win what's your read on the whole thing. you know if i had to read the tea leaves larry i'm going to be honest i think that he probably will win and the reason that i'm going to say that is because the polls right now show that doug jones is polling about one percent higher which is so close to that margin of error but these polls are the same polls that were showing that hillary clinton was going to win by ninety one percent so my point that i want to make to make this quick is that i think there are a lot of voters that are and barest when these pollsters are calling i think there are a lot of voters that are embarrassed to say that they support roy moore so i think when the polls actually turn out t