FOX Business host Larry Kudlow discusses Republican unity in 2025 on “Kudlow.”
Trump needs a big, beautiful coalition to pass a big, beautiful compromise bill, and that's the riff. There are important reasons for President Trump to be tough on his big, beautiful bill when he meets with Republican senators tonight, but an almost overlooked reason is the diversity of House Republicans, where virtually any important legislation requires a coalition. Here is what today's speaker, Mike Johnson, says:
Mike Johnson: “I think it makes a lot of sense given what we have to accomplish. The House is a very diverse conference. The House Republican Conference is a broad conference, with over 200 people with different opinions and dynamics in the districts. It has itself in its neighborhoods. So, you will consider it and we will do it. We are focused on the strategy of a bill.”
Tens of thousands of Amazon workers returned to work in Washington
Sen. Mike Crapo of Idaho unpacks the tax code and proposed tariffs under President-elect Donald Trump in Kudlow.
I can think of at least four key groups whose votes will be necessary to pass President Trump's agenda. One is the pro-growth tax cut group. Second are those who want enough resources to close the border. Third are those who insist on budget cuts for PAYGO to balance each to spend increases and the fourth are heavy defensive hawks.
Personally, I'm in favor of all four, but not everyone at the House GOP conference agrees. What House Speaker Mike Johnson says is that a bill strategy is the only way to bring all these different interests together. It's important to note that PAYGO budget-cutters play a big role in any debate – whether it's this one bill or the next ten bills and they're right. Only in both political parties, there is a clear disregard for the budget surplus expenses. This single party a deficit And interest on debt must be stopped.
However, delaying the tax cuts will delay the blue-collar boom. Delaying tax cuts will frustrate President Trump's new working-class Republican coalition. Postponing tax cuts will delay the next real boom for the middle class — which will hurt Republicans in the 2026 midterms. Most of the tax cuts are just to extend Mr. Trump's first tax cut. There is nothing too complicated about it.
Trump's plan for a 15 percent corporate tax rate, along with tax-free cash tips and overtime pay, are all important economic growth measures, but there's nothing drastic about them either. Plus, this Trumpian mix of supply-side policies—tax cuts, deregulation, and more energy production—will finally end Biden's inflation. Meanwhile, the House has already passed HR1 on energy reform and HR2 on border closures.
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If some of our Republican friends want to double the salt deduction, it's small beer as far as different skills go. Just give them.
Finally, contrary to some bogus reports, Mr. Trump is seeking a broad global tariff that he can pay For plenty of tax cuts – and then some. America imports about 5 trillion dollars annually, 10% of which is 500 billion dollars. This would cut a lot of taxes – as well as other priorities. Along with the need for coalition thinking, people need to think about the potential for tariffs to finance these tax cuts. Believe me, this is never far from President Trump's mind. This is the riff.
This article is adapted from Larry Kudlow's opening commentary in the January 8, 2025 edition of “Kudlow.”