Larry Kudlow: 2021 ‘Could Be a Spectacular Year in the Economy with the Right Set of Policies’

RUSH EXCERPT:

KUDLOW: “It may be, Jake. It may be. We haven’t made a decision yet. I agree with your points. This has been an extremely popular and effective program, no question about it. You know, keeping folks on the payroll is so important. And even if they’re furloughed for a while, they’ll be picked up by the unemployment compensation. So yes, that suggests, I might add, potential strong springback once the states gradually phase in their reopenings in the transition months of may and June. I don’t want to rule it out. I think your point is well-taken. We waited a little bit too long, I thought, when the last tranche ran out, let’s not make the same mistake again. We’ll be looking at that. But we also want to look at some medium term items. The president is very keen on a Payroll Tax holiday for workers, we had one for business, we would like to see one for the workers. We would like to see tax deductions for business, entertainment, going to sports events, we’re trying so hard to help everybody open up. We’re looking at people being able to write off, if you have new expenses in any area, whether you’re inventing vaccines or whether you’re redoing your factories or office buildings to help on the Covid-19 medical side, best practices, we would like to see that completely expensed. We would also like to see some shield on liabilities, because we don’t want small business to stay closed because they think they’re going to be sued right away. So these are all — I call them economic growth incentives, so we have lots of cash and liquidity, now it’s time to look forward to economic growth incentives. We did it once, Jake, we had a very strong economy during the Trump years and the first few months of this year. We would like to apply the same free enterprise principles besides the second half rebound, I think 2021 could be a spectacular year in the economy with the right set of policies.”