STUART VARNEY (HOST): Some Democrats are calling for significant, shall we say, tax law changes. Here is Hawaii Democrat Tulsi Gabbard. Roll tape.
REP. TULSI GABBARD: I think we need to overhaul our whole tax system. I think the president's tax cuts overwhelmingly benefited the rich and powerful, leaving behind the vast majority of hard-working Americans in this country.
VARNEY: OK, “leaving behind the vast majority of working people in this country,” and she says that many Americans are still struggling. Art Laffer with us now. The Democrats seem to be appealing not to the hard numbers on growth and unemployment, but to your feelings, I mean, to the emotion side of things.
ART LAFFER (FORMER REAGAN ADVISER): Yeah, I've always been such a huge fan of Tulsi Gabbard. I thought she was just wonderful before. But now that she's running for president, that was just nonsense that she just said. Just total nonsense. Number one, tax revenues are up. So these people aren't getting tax breaks. They are getting tax breaks because, if there were any, because of economic growth. Economic growth has benefited clearly primarily the lowest income groups in this country, the poor, the minorities, the disenfranchised. I mean, we have added enormously and she's saying these people aren't being benefited, she's going to rehaul the tax bill and get rid of it. I mean, what nonsense. This tax bill's the best.
VARNEY: She's saying many Americans are struggling to get by.
LAFFER: Well, they always are.
VARNEY: There is always going to be a portion of the population which struggles paycheck to paycheck. That's always the case.
LAFFER: And you know, that's part of growing up. I mean, when you're young you don't have a house, you've got all these bills, you're struggling. When you get old, [inaudible], you get to live a little nicer life.
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