Larry Kudlow, CNBC

Gary Armstrong right now on the W large scale. Radio network. My favorite has the show -- the -- reported airs every night at 7 PM on CNBC. We're joined by the host of the Kudlow report mr. Larry Kudlow Larry welcome to the show Fareed. Larry I asked a I have been what. This -- sifting through the Romney planned as a relates to taxes. And basically he's looking at 820%. Tax cut across the board is that correct correct. What do what do you make of it because I read I also read the Austan Goolsbee op Ed in the Wall Street Journal this weekend where he pokes a lot of holes and it. And genitalia last night I watched your interview with Paul Ryan you seem to approach it with a little bit of skepticism. Well give -- I don't think their numbers are. Worked out yet our secure it is Smart guy I don't agree with -- Austin positive against lower marginal tax rates. I'm -- supplies starter -- favor them all I have is to supply sider and they're good and I think there would go a long way. Towards growing the economy. What we need direct personal and corporate right however. That's bad. Grew to speed raises some important points about the basic deficit -- And that's what I went through with well all right and I think they're gonna have to do more work on that. But here's what's missing. I'm spending cuts and I and I talked to write about that now he he doesn't want to be overly specific yet. But. Be all the way the numbers will work. So you preserve middle glad Democrats get a tax cut out of -- the middle class is gonna get a large tax cut. And the -- tax deductions and exemptions. Will be limited for the upper income taxpayers do not for the middle -- dot. In order to make this whole exercise. -- deficit neutral. -- deficit. Positive meeting a lower deficit. You have to include spending cuts and that was in the original Romney plan he said. Okay where got to lower that tax -- here's what happened. First of all economic growth will pick up from the inside that you might get 4% growth draw a lot of revenues -- second. -- tax loopholes and deductions for the upper hand will be limited or eliminate it. Third there'll be substantial across the board. Our budget cutting you don't want to take the -- -- the budget gap -- 24% of GDP to 20% of GDP. Barry would you do the math on that depending on how -- they do it yeah it's about a trillion dollars. Off with the current services baseline that's a big number so. Well I'd try to get ride is safe I acknowledged that up if you throw in the budget cuts that you don't have to worry. About any kind of middle class tax hike or anything like that. And that's the best way to do it -- that was the Reagan model that lower marginal tax rates. And lower spending particularly domestic spending and -- when you throw in the entitlement reforms he got himself a good pro growth package but. I agree -- knowledge. The schools be attacked Irish lost that even wise I'm not disagree the numbers are not quite -- -- India Romney Ryan plan. Well let me let me ask get on it because right I like what I'm hearing on Romney Ryan. With one exception I do not like the Ryan Medicare plan the -- I don't like going to a voucher system. Tom I also don't know what the Obama Medicare plan is I don't know what he's gun store forced but I know I don't like to voucher plan because. I'm 52 years old Larry. On the beyond that plan that's a tough one for him to sell. -- it will link -- help help persuade me that I should like the Ryan Medicare part. -- If you don't want more of a choice -- I would premiums supports and a menu of insurance. Stay in Medicare. To traditional. Feed for service Medicare plan. Is part of the Ryan I mean that's that's part of the ride program. And that's the 18. Amended US senator Ron Wyden and others. Didn't need that in there if that's what you want that's what you get stripped bare in mind a couple things here. When Obama takes 700. Billion dollars out of Medicare which is it over to obamacare. One -- he's decimating person brought. You know hospital and doctor clinic providers are gonna get killed you and so the quality of care is gonna go down they're just gonna get killed -- -- -- get paid for their services. Because think about that. Second point has. You've got what. 1213. Million people are Medicare Advantage and Medicare Advantage is essentially what. Romney and Ryan are talking about it affords you a menu of insurance choices. And you'll get your subsidy. If you're wealthy you get a smaller subsidy. If you're -- or you'll get a large subsidy so those -- premiums supports. So what I'm saying is. If you right Medicare Advantage you you really don't like this idea about other menu of insurance options and I think. The more choice and competition. The better at a cost curve is gonna come down but if you don't like it stay in the traditional Medicare plan. You have that option that's on the table. And by the way well right it's sad and -- -- plan. It's not exactly -- but it is previous support it's just like they have in congress. That congress people. How subsidies or whatever happened doesn't insurance plans I don't know why we should have choices but. That first developed. In a bipartisan commission during the Clinton years were democrats' side -- about it. John Breaux from the week in out of our call Alice Rivlin and so forth to really. There's just been about a bipartisan support for this. But I acknowledge that I need is okay yeah I hear you on that so I'm saying. Two stated that can you stay in the existing. Feed -- -- then then you're spot so we have no way this can be around. Right I know that's -- then can we afford it in twelve years is broke you know then that yeah. You look at the numbers and you look at the fact that. But what the president is doing is shifting that 750. Billion dollar shift that's gonna really hurt. I mean everybody that's what the status that that is really gonna hurt Medicare. At a time when Medicare can't afford to lose that kind of money. I I noticed in the polls like I would I use real clear politics is my major source of you know updates. It looks like a dead heat now it's 463 you know Obama and 454. For Romney. Don is -- does he have legs is resisting and it is this going to be asked a closer race than many of us thought. Well I think that. There's two key points here number one. Most of these polls are registered voters not likely voters. And that overstates the democratic position not overstate -- Barack Obama's position. There's a lot of waiting it goes on waiting. Based on the 2008 election I don't wanna get too technical. But. Democrats tend to run 78 percentage point about Republican that is simply not true anymore that was true and oh wait yeah. Not true now so great for -- likely voters. Polls that -- second point. It's an incumbent is running bad whatever your number was what you say 47%. Yup. Mean he's guys are right I've got Obama at 463. Vs Romney 454. All right that's a very bad number for Obama in any time incumbent has below 50%. And stayed below 50%. It basically means people have made up -- but yeah -- all and there are only give them 46%. Now I think there's more -- in this race that a lot of people do and I'll tell you there's. This speeches this week I'm going to be in Tampa covering this thing you guys on our. This speeches on Wednesday night by Paul Ryan and particularly Thursday night by Mitt Romney. With forty or fifty million people -- watching as the biggest crowd ever watching -- are going to be so. Important. In terms of moving people. You know either for or against those two candidate. And and I can't overestimate. I mean that is really going to be important but right now. But it incumbent president at 46%. Yeah I think that's spells big trouble for Obama frankly. You know then it's inching to watch and -- I agree with you I mean the the number and they are shifting of the numbers -- happened very rapidly hasn't. It all within the last week. No attention Romney's comeback in the last week. Couple big post. Including the fox poll. Rasmussen it does likely voters is always get Romney were slightly out. I think -- Paul Ryan. Domination. Has really helped the ticket. Yes and I love a lot of energy yup. Lot of energy a lot of good ideas you know this is just Smart serious sky would that be an old friend of -- this great pleasure interviewed again last night you can see how seriously -- Have to go to he has to economic growth. -- tax reform and spending reform and. Any good number -- -- I think he's a terrific guy like I feel a lot better about him is vice president that I would about Joseph Biden. You know I absolutely had -- and Ryan is essentially an advisor to -- you you know I mean I mean he's going to be a participated always -- policy discussions. Yeah I think Ryan I think Romney respects Ryan. I do and I think that's why he chose him as a surprise choice so I think Ryan supporting and helping Romney had. Like -- say watch it on Wednesday night Thursday night I mean that's going to be pivotal as the country. Needs those two people really for the first time that's the deal. All right movie watching you next week query every weekend thank you thank you -- That's Larry Kudlow from CNBC joining us today on the financial exchange.