LARRY KUDLOW: A look at Biden's new budget plan

First up, I want to briefly tackle President Biden's budget, which is a totally unserious, massive tax and spend big government approach that looks like it was written by Senators Bernie Sanders and Elizabeth Warren. 

Best we can determine, there's an incredible $5 trillion tax hike, which itself will decimate the economy by placing enormous tax penalties on producers, investors, and the workforce. 

Even by Bidenomics standards, this is an unbelievable wish list. I know it's dead-on-arrival, but nonetheless a lot of people are going to read this and ponder its potential impact on the debt negotiations and the 2024 presidential race. 

As I've said many times, the radical left Democrats want to punish success. They are the anti-free market capitalists of our time. I worked for two presidents, Ronald Reagan and Donald Trump, who believed in rewarding success by reducing marginal tax rates across the board. 

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The Bidens have no interest in economic growth. They are driven by their radical ideologies toward a redistributionist vision of a declining American economy. By the way, there are massive spending increases throughout this budget on social welfare benefits without work requirements that make a mockery of the idea of deficit reduction. 

In fact, spending under the Biden budget will remain at 25% of GDP. The fifty-year historical baseline is around 21%. So, this is big government socialism and that spending will make it even harder for the Federal Reserve to bring down inflation. 

A brief list of the tax hikes includes: 25% tax on people with $100 million or more in assets, going from 21% to 28% on the corporate tax rate, raising the top individual tax rate, doubling the capital gains tax, a wealth tax on unrealized capital gains, Medicare tax hikes, small business tax hikes, a huge increase in the taxes of overseas U.S. corporations should they repatriate, taxes on oil companies, real estate, private equity, cryptocurrencies. 

This comes on top of that $150 billion in business tax hikes already legislated. The combination of this Biden tax and spend approach paints a picture of a stagnant growth, high inflation economy -- as far as the eye can see. 

We will be speaking much more about this budget disaster, but there's more news this evening, and it's much better, and I mean much better. 

The House Republicans are coming to the rescue of the economy with a new piece of legislation that I'm going to let Speaker Kevin McCarthy, who is right here beside me, describe in more detail. 

For right now, how many times have you heard me in recent months talk about an H.R. 1 permitting bill that would unlock the oil and gas spigots and return America to energy independence? 

Hold your breath, and please take a listen: 

LARRY CALLING FOR AN H.R. 1 PERMITTING BILL: "Hopefully the next step will be a broad based H.R. 1 permitting bill that will reopen fracking and pipelines and refining and LNG terminals and all the rest. 

An H.R. 1 and an S. 1 House-Senate bill that will take the handcuffs off of oil and gas production. 

H.R. 1, take the handcuffs off oil gas production. Now, this is a Kudlow makeup thing. I've been pushing this H.R. 1. I know I'm ahead of the curve. 

I'm hoping it's H.R. 1 

So, I make my perennial plea to you, are we going to have H.R. 1 in the House? Are we going to have a bill that will open up the spigots again?" 

Scalise: "Hey, you and I are on the same page. We haven't made that decision yet." 

Larry: "That's right. H.R. 1, an S. 1, could become a reality if that is true." 

McCarthy: "Our H.R. 1 is going to be about making America energy independent." 

Larry: "Kevin McCarthy. You get me every time on that H.R. 1. I love that. Opening up the spigots." McCarthy: "Does it bring a little tear to your eye?" Larry: "It just gives me a chill down my spine." 

Passage of this new legislation could bring us up to the production of 14-15 million barrels a day, unlocking clean-burning natural gas, boosting LNG exports, expanding refineries, pipelines, and cutting through the regulatory maze that the Bidens' radical climate change policies have constructed. 

You could be thinking about oil prices closer to $40 rather than $80 or $100. Gasoline would come back under $2. Working folks throughout the economy would be able to afford electricity bills and utility bills. Refined petroleum products permeate every nook and cranny of the American economy. Unlocking the spigots will unleash affordable energy and that includes renewable energy. 

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Fossil fuels impact phones, clothes, toothpaste, laptops, diapers, toys, hospital operating rooms, lifesaving medical products, hearing aids, glasses, soaps, Aspirin, and the list is endless. 

Almost more than anything I can think of, a major league permitting bill will slash inflation and rejuvenate economic growth. When you put that together with limited spending, permanent Trump tax cuts, and a rollback of Biden regulations, we could get this economy moving and bring back the kind of prosperity that Americans want. 

This article is adapted from Larry Kudlow’s opening commentary on the March 9, 2023, edition of "Kudlow."