those numbers, the health of the shopper, the health of the consumer. of course it is a discount operator. if you see those numbers looking really, really strong, what is important to note maybe that is a sign that -- let me check costco. costco hitting a record high, $787 today. right now at 785, still a record, a gain of 1.6%. all of those numbers and more. tomorrow we are all over any reaction to the state of the union address and the markets once again on that friday. we shall see. we have the crowdstrike cofounder and ceo kurtz, bank of america head. she will join us and talk about her higher s&p call. [closing bell rings] that will do it for "the claman countdown". larry kudlow as speaker johnson. larry: hello, folks, welcome to "kudlow," i'm larry kudlow.

we are live from washington, d.c. we are talking about the state of the union message tonight as president biden takes center stage. the nation's state of the union is unhappy, demoralized, even fearful if you ask me. our very own john robertses will be here in a minute. he will lead us off what we might expect. speaker of the house mike johnson will join us. he will be here to talk about whether the border catastrophe will ever get solved, will we ever see a balanced budget in my lifetime? i don't know. senator marco rubio may have something to say about joe biden's cockamamie idea for the u.s. military to build a port in gaza, more insanity. senator rand paul will be coming around. will joe biden's spending spree ever be stopped at home or abroad? kevin hassett and steve moore why biden tax cuts will backfire. biden tax hikes i should say. then my favorite congresswoman, claudia tenney, she will report

on donald trump's own state of the union prebuttal, very cool. first up, a couple thoughts from me. let me riff on this. americans are accustomed to a prosperous, confident and happy state of the union, all right? that's their normal attitude. but these are not normal times. under joe biden the american condition looks like it's unhappy, somewhat demoralized and even fearful. now a recent poll shows 43% believe joe biden policies have actually hurt them. the same poll shows that the lives of working class blacks, latinos, whites, women, other groups, they're actually better off under donald trump than they were under joe biden. biden spent six trillion dollars of democratic pork on climate and welfare and woke schools and student debt and other crazy boondoggles. all that has done is jack up

inflation. it hasn't made people any happier. high prices for basic goods like groceries, gas lien, or home mortgages, all that is killing off the middle class. under joe biden the workforce has taken a pay cut. listen to this, from a real weekly wage of $399 when joe biden took office, to a decline of $380 most recently. that is a drop of 4.9%, a pay cut. under president trump over the same period they had a pay hike of over 9%, right? given a choice i think folks would rather have a pay increase than a pay cut. meanwhile illegal immigrant crime is causing fear in the streets, towns and cities across the country. fear is not the natural state for america but now we're told mr. biden wants to raise taxes on success companies and entrepreneur the. just more left-wing, progressive democratic pap. all it will do is suppress the economy. all it will do is reduce tax

revenues. ironically donald trump's successful tax cuts are probably the biggest source of economic stimulus in the economy today. go figure. anyway it is all driven by after tax profits from trump's tax cuts. anyway, joe biden wants to squelch all that. it is just the stupidest thing i have ever seen. finally how is this? business about shrink-flation and cookie monsters. this is about biden-flation, not serious business. that is all there is to it. but remember, liberalsals hate business, even though business creates jobs and business creates higher wages. meanwhile countries are bombing each other all over the world. right now the u.s. looks like a helpless, powerless bystander and finally americans are sick and tired of being told what to do or what not to do, what appliances, what cars to buy or what they can't buy and i think they are sick of it. that's what the collectivist

government or big government socialism does to you. bunch of over educated permanent bureaucrats in washington d.c., trying to dictate how ordinary working folks can live their lives in mainstream america. people are fed up with it. they are sick of it. the question whether joe biden will do anything to change it? folks don't hold your breath on that one. but there is a guy down in mar-a-lago, florida just itching for a second bite out of the apple. at least that is what i hear. that is my riff. joining me now our very own john robertses coanchor of "america reports" on fox news. john, thank you. i know you're a busy guy today. nobody knows this stuff better. what's your expectation about the state of the union? >> i think it will probably be a review of accomplishments that this president believes he has gotten in the last almost three years of his presidency and it

will probably be viewed through very rose-colored glasses. i don't think he is going out there to say here is what is wrong with the country, here are my prescriptions to fix it. he will propose a lot of things including a massive tax hike on richest americans as well as corporations which you continue to tell the nation will not be good for the economy. he thinks it will raise revenues but there is a lot of evidence to the contrary and i think it will probably be just a pretty standard state of the union address. the big question will be how does joe biden look in terms of delivering it. remember bill clinton, one of the most incredible state of the union addresses, i believe it was 1994, he got up on the well of the podium in the well of the house and he looked at the tell prompter it was state of the union address from the year before. rather than panic, rather than saying, oh, my god, rather than walking off from the floor, he

did his current state of the union address from memory. larry: that's right. >> can you imagine this president doing that? i can't imagine doing that. larry: that is a great story. he riffed through it. he went quite long as i recall. way too long. >> it was a very long speech. larry: he was a smart, young, energic guy. not looking at that with biden. >> to be able to ad-lib almost the first ten minutes of state of the union address before we got the right copy and rolled through it, that's remarkable. that is not something a lot of people can do. i don't think joe biden will be measured against that but he will certainly be measured against donald trump and measured against barack obama tonight. larry: that is important point, dwell on that for a minute, leave the policy alone, this political appearance business which you raised, "super tuesday" night, this is thursday, so that was tuesday night donald trump appeared in mar-a-lago, right? no teleprompter, no cards, spoke for, i'm going to say 30 to 40 minutes, i don't recall exactly.

he did it off the top of his head. did the pretty well. >> he has been doing that for a long time now. larry: that's right. that's where i'm going. >> on the campaign trail. he has a lot to say. i've been in places like when we were in singapore for the very first trump-kim jong-un conference over getting rid of north korea's nukes. trump came down into an auditorium. there were probably a couple hundred journalists in there. we thought he would take two or three questions. he was there better part of an hour, a little bit more, fielding any and every question and had a robust for it. you don't see that with this current president. he will take one or two questions. he will walk away most of the time. to have a president who can't be off-the-cuff and spontaneous and just kind of ad-lib or response based on knowledge that they have, joe biden should have more knowledge than literally any other politician in this nation, but when it comes down to delivering the goods there seems

to be a little bit -- larry: we'll watch the energy level tonight. it will be very important. john, how political, how attack dog, how anti-maga, how harsh, mean, nasty is biden going to be, you think? >> i think he will be his typical self. at this point he doesn't seem knob a mood to try to win over trump voters. he probably figures that they're gone, he will never win them back. he might try to win over people that voted for nikki haley. there is no indication at this point they would do that either. remember what jamie dimon said when he was at the world economic forum in davos, switzerland, be careful how hard you pursue that rhetoric of maga, what you say to every trump voter out there, because you support him you are just like him. i don't think they vote for donald trump for family values. there is this, he did a lot of things for good of the country. he was mostly right on the

china, mostly right on the economy, mostly right on the immigration. mostly right on a lot of things. jamie dimon may not be a dyed-in-the-wool left-wing liberal. larry: he is no trump supporter. >> what he says carries a lot of wait from a pretty balanced perspective. larry: biden should watch it. i'm interested how partisan he will be. to some extent this is the beginning of his general election campaign. >> here is the question, why would he not be partisan? he is trying to tell every democrat, every progressive out there, these people are the enemy of america and whatever you do, do not get into the camp with them. you are going, like hillary clinton did in 2016. like barack obama did with his people about it early clinging to their guns and bibles. he will alienate a lot of people. is that what a unifying president should do? >> we'll see all about it, john roberts thank you very much. don't forget john co-host, sandra smith, my dear friends of on "america reports," every day,

1:00 p.m. eastern on fox news. thank you, john roberts, we appreciate it very much. i'm going to, i'm going to do a little scamming and "glamping" while we fix the border. we'll bring in the distinguished speaker of the house mr. michael johnson of the great state of louisiana. were you ever radio host among your many skills? >> [inaudible] larry: i thought i remembered somewhere. you understand what vamping is all about. you have a small tv set. we will thank john roberts again. mr. speaker, thank you ever so much. first of all thanks for buying us all a cup of coffee this morning. that was very revealing off the record briefing. i might add it was not only fox people. my friends from other networks. can i ask you this, i know we should be talking about the rest of it but i'm saying, or i believe in my heart, what i look at, that the state of the union is not good. that people are not happy. they don't feel prosperous. they don't feel confident.

they, to some extent are fearful because of the immigration problem and the crime problem that goes with it. i mean it's not a good state of the union and you're going to be up there at the podium listening to president biden but how do you sense this too? >> i think you said it very well in your riff in the opening of the program, professor. i think you summarized it well. i think the american people are fed up with weaponized big government socialism. with the open borders we have in this country. i think they're fed up with the high cost of living and with weakness that we're projecting on the world stage because they see the effect, the direct effect this is having on their lives and their families and families are hurt. inflation is up 17.9%. i saw the stat today, the average american household is paying $11,400 more to make ends meet. household debt is up at record high. this is not sustainable debt. the media asked me over the weekend, someone said in one

word how would you describe the state of the union? i said sadly decline. we're declining in every metric. i'm not sure this is something we can continue any longer. that is why the american people will deliver us a big victory in november. larry: the numbers are showing traditional democratic constituencyies, latinos, blacks, let's start with those two, they have done better under trump than biden. i written it so many time my arms and wrist are getting sore. they had a pay raise under trump. they have had a pay under under bide. that is not a good position to be in. now i'm hearing, we threw this out this morning at breakfast, now biden wants to solve this problem by raising taxes on successful businesses and entrepreneurs but the point is he is losing core constituencies pause of this situation. >> he seems to be completely tone deaf about it. john adams said facts are

stubborn things. facts are on our side. people can look at these things objective recognize they had a better standard of living, they had more security, america was stronger than when president trump was in office. the first two years, you were there, you were part of it, we achieved the greatest economy in the history of the world, not just the u.s., in every dem traffic everyone was doing better, they were safer, more secure. the crime was not through the roof as it is in every community in america. the border was secure. they're looking at that they're measuring that and i think there will be a real energy. i think there is a huge enthusiasm gap in this election cycle. i've been in almost 20 states the last several weeks, larry, when the speaker, when we're not in session i'm flying around the country helping my candidates and colleagues. doesn't matter where i am, out west, midwest, long island, teach south, the same feel, the same sentiment out there in the base. i think people are ready too make a change. that is what i think will happen. larry: one of your most distinguished predecessors,

newt gingrich, dear friend of mind, mentor, advisor and so much, trump is breaking up the old democratic coalition because folks have done better under trump than they are under biden. they're pulling over. you see it with the hispanic latinos. some of these numbers with women, with even college kids, even with african-americans, i mean this could be a new coalition now, speaker, what is your role, your piloting the house? you're the north star, i know it is a thin deck but nonetheless you have the political gavel and political platform. how do you want to play this? >> listen we have to demonstrate we can govern. i think we hold fast to our core principles the thing that made america the most powerful, extraordinary, most benevolent nation in the world. those things are in jeopardy, there are rising number of people including elected members of congress on the other side who are trying to dismantle the

foundations of the country. that is the battle. not just rs versus ds. who is the vision for the country going forward. i'm delighted donald trump is officially our nominee. we'll work together, to win the white house and republican take the senate and grow the house majority. people can join us, grow the majority.com. record numbers can join us. we have record number of new donors coming into the fold. that is the enthusiasm out there. it is real. larry: i know you have to run, speaker, this came up in breakfast. you're a constitutional lawyer, you know as well as i do, i'm not even a lawyer, we did a lot of research, there are two sections of the u.s. immigration and naturalization law. this stuff has been passed by congress and signed by presidents decades ago. section 212-f gives the president, any president the power to stop people from

costing crossing into the border i will really. section 287-g, passed in 1996 under bill:toned and newt gingrich asperger gives the president the power to work with local law enforcement to deport criminals. joe biden keeps telling us publixly he doesn't have the power to do this. apparently he has told other people privately he understands he does have the power. he is just afraid to use it. i don't know, help me out on this, where is this going to lead because this is gigantic issue? >> this is gigantic issue. i read those two parts of the law to the president myself. he acknowledged those are provisions of the law. he for a while he claimed he didn't have the ability to use it. we're setting him straight on that. this afternoon, larry we voted on the laken riley act. larry: yes. >> she is one of the latest of victims of this illegal my grant crime. releasing people into the country. georgia is not own the border

but every state is a boarder state. it is a tragedy. 17 democrats voted against the laken riley act -- 177. it would require i.c.e. to detain illegal immigrants engaged in crime to deport them. the democrats oppose that. white house opposes that. larry: how do they -- >> i can't explain it. larry: ordinary people, how is that possible? >> president biden, mayorkas, secretary of homeland security engineered this catastrophe. they opened the border. we documented 64 civic executive and agency actions since joe biden walked into the oval office on day one by the way. to create that situation. why did they do it? i am asked that in every town hall, the answer is they hope to turn these people into voters. it sounds like a conspiracy theory, that is a fact. jerry nadler, former house judiciary chairman admitted that

to me in a hearing. elon musk found that video, released it to 60 million new people. as sinister that sounds they're will be to be allowed americans to be preyed upon victims of violent crime instead of to yield to maintain power. larry: that is biggest problems in the state of the union today, the fear factor. speaker johnson. >> i'm a big fan. larry: likewise, same way. all right, folks, joe biden's latest brainstorm, you will not believe this, apparently he wants to build a u.s. military port in gaza, with u.s. troops, okay? i'm dumfounded by this but we have senator marco rubio who of course is a foreign policy expert. he will weigh in on that and other state of the union issues. please don't miss tonight's state of the union special coverage, hosted by bret baier and martha mack. 9:00 p.m. eastern on fox news. i'm kudlow. he is speaker johnson. we will be right back.

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larry: welcome back. apparently joe biden's latest brainstorm is having the u.s. military build a u.s. military port in gaza, really.

i mean it doesn't make any sense to me but joining us tonight is florida senator marco rubio. senator rubio, welcome back, as always, sir. i don't know whether you've gotten wind of this. apparently he is going to make this announcement tonight at the state of the union. to me it doesn't make a lot of sense but you're the foreign policy expert. you want the u.s. military to build a port in gaza? >> it is theater. it is ault designed just like the air-drops last week. it is not designed to solve anything. it is designed to basically appease the element of his base screaming to them about genocide, demanding cease-fire, that pro-hamas stuff. these are voters in their base. the voters invited into their coalition, now threatening not to vote for him in november. so they keep coming up with creative ways to try to appease the second if they actually follow through with this, the military said they will need 2,000 troops on the ground. they will need them. who will secure -- you need

someone on the ground to protect you while you're putting up all the things you're putting up through the army corps and others to build a temporary port. that is the second. once you get the aid in who will distribute it? that is the factor in place. the only people on the ground with any organization to distribute things are hamas. in essence they will guarranty, go through all the trouble, put american lives on the line so aid is distributed to hamas who will control everything like they have controlledded everything. there are no hamas fighters to starving to death. there is no history, none, for helping other people this is all for show and dangerous. the fastest way for people in gaza to get assistance is allow israel to defeat hamas. these are the people that caused this upon them. larry: this is new news to me, you're much closer to it more than i am, lord knows, all of sudden committing u.s. troops into the israeli, hamas

situation. israel has not asked for that as far as i know. i don't think american voters, american parent, i don't think american patriots don't want to do that. this is some whole new horizon. if you build a port you have to protect a port because there will be u.s. militariliry assets or related sievian assets. this strikes me as severe insanity. >> it is insanity. reckless, what can we come up with, what can we announce at the state of the union that will help us politically with disenchanted voters no one is ever woke enough for. you saw the congresswoman from new york, what is her name, she was heckled the other day by people demanding she say it is genocide even though she said that in the past. adam schiff at his victory speech the other night being heckled, they are just being hounded by these radical element that are part of their voter base that are pro-hamas, anti-israel. and they're trying to appease them. larry: senator, what is going

happen? do you have any expectation with respect to solving the border problem? southern border problem, in the u.s. the northern and southern problem here, do you think biden will have anything to say about that tonight, sir. >> i don't know, he has the power. our law is pretty clear that says everybody in this country illegally should be detained for removal. we had exceptions on case of individual basis. biden through the special order turned exceptions into the natural order. this is what he campaigned. he said if you elect me i will do on what donald trump has done on the border. everything he has done i will do the opposite. that is what he did in january. 7.2 million people have come into the country illegally three years, three years and two months. it is growing every day. to solve it he would have to admit trump was right. he has elements of his own base will go bonkers if he actually

does it. i don't know what he will do, he is now admitting he executive powers to reverse his executive powers. go back to december of 2020 when we didn't have numbers we're facing now. state of the union is happening tonight. yesterday the state of new york deployed national guard troops to protect the city against the migrant crime wave after that is happening. larry: after they said they would do such a thing. or no one should do such a thing. can i switch gears, senator, before i lose you. i know it is a busy evening. is it possible to have peace overtures or a peace attempt to solve ukraine-russia rather than just throw more money into it? i don't want to leave ukraine in the lurch, sir. that is not my view but what i would like to know is why can't there be some kind of a diplomatic off-ramp or peace negotiation off-ramp? is such a thing possible. >> i think that is what we'll

ultimately arrive at. the question when that moment comes who will have the leverage? is it putin who think hes has the upper hand and insist on greater demands or is it ukraine because putin will not able to achieve his original objective which is taking over the country but that now putin it realizes he can't achieve some of his more recent objectives. so who will have the leverage? that is our purpose for ukraine to give them amount of leverage for them to have when the time of negotiation comes. neither ukraine or russia is anywhere close to achieve their ultimate goals as they define it or state it out there. the purpose of our aid should be used to give ukraine the maximum amount of a leverage going into those negotiations. they won't have it if putin feels like he has the upper hand if he feels america is cut and running. we have to take care of the border first.

we have to show americans we care as much a about the safety of this country as we do about the safety of another country. they are both important. but america always has to come before the others. larry: senator rubio, thank you, sir, we appreciate it very. folks coming up later on, here we go again, joe biden guess what, joe biden wants to raise taxes. wait a minute, he wants to raise taxes on successful people and businesses. wow. there is a shocking surprise, you know? it is all so shocking. the left never learns. anyway we'll talk about it with the great kevin hassett and great steve moore. plus, how does biden plan on raising all those taxes without cutting the deficit? wait a second. does anyone ever cut the budget deficit or do we just keep spending? we'll ask that from kentucky senator rand paul who will be right here, live and on set with kudlow. we'll be right back. ♪.

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♪. larry: here's a shocker, it's all over the place, joe biden will announce today, wait for it, hold your breath, at the state of the union, a tax hike on wealthy people, successful people and successful corporations that pay wage earners more money. kevin has it, author of "the drift," america's slide to socialism. teach moore, what i like, steve moore, host of "moore money" on wabc. that is my favorite one. kevin hassett you practically invented the corporate tax cut. every new study you sent me a study, everyone shows it works. everybody bern fitted from it, particularly the workforce. wages paid taxes, revenues went up, not down. why do they want to raise the corporate tax that was so soak susful? >> the biden white house is latest in on science denial. all those studying the economic

jobs act. it made wages grow more, increased capital spending, there are detailed studies by non-partisan guys at harvard and people that don't like tax cuts, the most extraordinary thing, corporate tax revenue is right now double before the tax cuts. so the laffer curve is so visible. larry: right. >> if president biden is going to raise the corporate tax rate, what will happen, revenue will tank and when revenue tanks, what will happen to the bond yields and so on? he will destroy the economy right now. they have this big huge deficit and make it worse driving up interest rates and driving up the deficit. larry: i think ironically the tum corporate tax cuts which have promoted corporate profits, for years, for years, is one of the biggest sources of stimulus left in this economy that hasn't been blocked out by biden's regulations and inflation and

interest rates and so forth, steve moore. now i want to go to you on this, they want to penalize again billionaires but i was reading anyone making over 400,000-dollars a year and want to raise a tax on stock buybacks and probably everything that moves. hang on a second, didn't you just show me in the committee to unleash prosperity hotline that the top 1% pays -- >> almost half. larry: almost half of the income tax? >> almost half? larry: 46%. how much more can they pay? >> right. that increased, actually when the tax rate under, when reagan came in was 70%, the top 1% only paid 20, 25%. now they're paying almost half. this is going to be a class warfare speech, larry. larry: yeah. >> it will be basically bash it to the rich. corporations shouldn't be making so much money. when has this ever worked? i mean you know you have so much evidence from what happened in the '20s under coolidge and '60s under jfk and reagan.

every time we have cut the tax rates what kevin was just talking about has happened and over and over again. i hate this assault on wealth. one other quick thing. it is not just the corporate rate they want to raise. they want to raise the dividend tax. they want to doubt the capital gains tax. raise tax on unrealized capital gains. things never before done in the history of this country. larry: craig shirley has written a nice new book about the interelect of ronald reagan. in 1986 that tax reform was totally bipartisan. >> 97-3 in the senate. larry: took the top rate to 28% if that is believable. kevin hassett have you ever met the cookie monster and shrink flayion. will attack the cookie monster because of shrink-flation? >> when there is lot of inflation, firms have to adjust. happened to me, a while ago we

were using a recipe that required a pound of bacon, i spent eight bucks on a pound of bacon. i went home it was only 12 ounces. i understand this is caused by inflation, caused by the runaway spending. the big thing about biden's economy is something that we got to fix, nominal gdp last year went up by $500 billion less than debt held by the public. larry: oh. >> kind of like this. what president biden has done, he is suppose running a small business. borrows 100 grand from a bank. gives his wife a salary of 30 grand. most 70 grand at vegas but brags at end of year that he won 70 grand. larry: you raise prices or cut back fewer product. fewer potato chips in the bag. >> shrink-flation is "bidenomics." this is the way the companies deal with inflation. inflation is not just killing consumers, it is hitting

businesses too because their costs rise. i'm addicted to doritos. i admit it. i love doritos. less chips in the bad. >> sounds like an ad. kevin hassett, steve moore. terrific stuff. all right i will vamp a few minutes while we switch around because the great senator rand paul will be coming on from kentucky. he will continue this conversation by the way about raising taxes, lowering revenues, not cutting spending, why are deficits growing. why are we borrowing faster than we're growing the entire economy and is any of that ever going to change? i don't know that it is ever going to change. i don't think joe biden, maybe joe biden will try to tell us here is the aforementioned senator rand paul. we're quick change artists. sir, we're doing great. you probably don't need a microphone. do you think there will be any serious budget work done in 24 state of the union tonight in that message. >> only if it is talking about busting the budget further. larry: yes.

>> won't be anybody talking about cutting spending. there won't be any fact we spend 6 trillion, bring in four 1/2 trillion. there is a little bit of a miss match. there is only talking about the tax revenue covers entitlements, nothing else. the entire budget congress votes on 1.5 trillion is all borrowed. there is only enough tax revenue to pay for medicare, medicaid, food stamps, a few other entitlements, social security. that is all there is. even on our side i get tired of republicans saying don't talk about entitlements. trump did some of this, don't talk about entitlements. some republicans conservatives in the house don't talk about entitlements. you have to talk about entitlements because that is 2/3 of the spending. larry: we, you have a spending bill before the house, the border, ukraine, israel, taiwan, so forth, but putting aside the foreign policy issues just for one second, it is over $100 billion. i don't hear anyone talk about

pay-fors. whatever happenehe concept of -- you spend a buck here, you should cut a buck there. what happened to that? >> it was one of the things that i liked when speaker johnson first came in. he introduced aid to israel and he paid for it taking away money biden would allocate to the irs. first time really i've been up here says foreign aid should be paid for even to our friend but it seems to be somewhat backpedaledded abandoned. i fear the house will bring up 100 billion. the senate passed it. with big government republicans. larry: no pay-fors in the senate. >> no pay-fors, nothing. larry: you just can't do that. >> they do it the week that the chairman of the federal reserve comes out and says the debt problem is your again. jamie dimon comes out and says there is a debt problem. you have all these figures of wall street saying there is a debt problem. what does congress react by doing? spending $100 billion we have to borrow. larry: let me get this right. the budget side is spending money like there is no tomorrow,

really nothing has changed. the trajectory hasn't changed at all. we're running six or seven deficits percent of gdp with low unemployment rate in mayes peacetime and the fed on other side is supposed to be restraining monetary excess. fiscal side is spending, monetary side is restraining. doesn't strike me something can sustained overperiod of time. >> something which is the fed creating problem or the congress. i think the congress. the fed reacts to congress. they will buy the debt, they will always will. it is a question whether the dollar will be worth as much yesterday as it is today. they will always buy the debt, when things get out of hand and prices go up, they say we have to do something. they're trying to control inflation. they're at cross-purposes you're right. the fed will even say we're

worry god it, what will congress do? all the spending bills. this is my problem with speaker johnson. he is allowing spending bills to go through the same rate. it is above the caps that mccarthy set. conservatives were mad that mccarthy had a crummy deal on the debt deal a year ago. johnson will actually spend money above the mccarthy deal. larry: what happened to the 1% cut if it didn't get done by april? you remember that? >> the 1% cut was only on a small sliver of government. i've been for 1% across the board t has to include everything if you want to do everything. all the money is in the entitlements. you have to have 1% of everything. if you do that you can actual balance your budget over time. larry: it wouldn't be a bad way to go. the thing, senator paul, all this spending from biden, $6 trillion, and then the cbo baseline, will run another four or five trillion, it hasn't made people happier. it hasn't made us more prosperous. it has caused more inflation. that model of spending your

keister off, i don't think it has done us any good. nobody's happy in this country. you see these polls, we've talked a lot about it on this show, you know, working families, whether you're african-american or latino or white or whoever, they're making less money now than they made under trump. the spending is not helping anybody. so who do we do it? >> there is illusion of wealth and there is some strong market wealth. the very wealthy have gotten wealthier. that's why when you look at demographics of republican support now our best people are truck drivers. our pest people are blue color workers. larry: right. >> the people who run the unions don't sport us but go to the assembly line in the ford plant or the chevy plant, gm plant, the workers are for us because their wealth is being eroded. they can't afford the steaks they want to do. can't afford the trips they want to take. rich is getting richer. that is the dirty secret of

inflation. people get more for their investments. but the prices don't match the increased wages. larry: you're going to have fun. senator rand paul. >> thank you. larry: always appreciate it. hang with us for a minute. great congresswoman claudia tenney will talk to us about donald trump's state of the union prebuttal. stick with kudlow. we'll be right back. three forks ranch is the destination for luxury and adventure. enjoy fly fishing and america's finest trout stream. kick back for intimate performances from the best in country music. enhance your wellness and longevity through our mayo clinic programs, or plan your meeting for a memorable corporate retreat. discover the west kept secret. go to three forks ranch.com to book your luxury experience. j.p. morgan wealth management knows it's easy to get lost in investment research. get help with j.p morgan personal advisors.

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♪. larry: all right, we have a little slice of donald trump's state of the union prebuttal and her to prebut the prebut al, joining us is the great new york congressman claudia tenney. congresswoman tenney, take a listen to what the former president said earlier today. >> he and the economists in his party looted trillions of dollars from you and spent it on illegal aliens and the green new scam, triggering the highest inflation in many, many decades. if your packages are getting smaller, that's the reason why. under my leadership there was no inflation. we had the greatest economy in the history of the world. larry: so, what do you think about it? it is just interesting as a campaign tactic, the prebuttal, let's start with that. >> it is a great idea. of course trump is a genius when it comes to marketing, getting his message out in his simple,

succinct way. everything he said there, i'm a small business enter in upstate new york, everything biden has done has hurt us in every way. disaster at the border. tax cuts and jobs act, it will expire. we have to get the bill down. cutting regulations. you and i talk about this all the time one of the top things that led us to having low inflation, growth, all the things we need to get out of malaise we're in biden does exactly the opposite. we're seeing terrible consequences. sadly the american people are paying the price. larry: it is interesting at the mar-a-lago speech "super tuesday" night, great victory speech he spent a lot of time on talking about a, new round, second round of tax cuts, more deregulation and of course drill, baby, drill. he said he would never permit inflation to occur again because inflation destroys countries. he had a very strong economic message. some people overlook that. >> i thought it was great.

we did need to do more. we did as much as we could in the tax cuts and jobs act. we had the slim majority in the senate because we did it through reconciliation. what we did is the best thing that happened to our family business and businesses in our state in 30 years or more. it was incredible what we got done. more tax cuts, helping our middle class taxpayers, helping our small business owners. in my community that is 90% of the job creators. it is 60% of the new jobs across the nation. it will be the key to growth and get us out of fits call malaise we see. larry: i have 30 seconds. you have guests from afghanistan tonight? tell me about this. >> i have the wife and children of an american citizen who has been wrongfully detained detain afghanistan by the taliban. he has been there 19 months. larry: this is his wife and children. >> yes. larry: he was been left there. >> he is not here.

we are working diligently to get him out. we're shining a light on it. larry: claudia tenney, thank you so much. i will be back with my last word.

larry: fiscal situation, how about this, cut tax rates, stop spending, deregulate, drill, baby, drill. keep the dollars sound and you'll have a balanced budget. i'm kudlow, be back tomorrow night.