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Republicans Must Laser Focus On Passing Kudlow’s Economic Plan
Steve Forbes · 2026-04-03 · via Forbes - Policy

The west front of the U.S. Capitol Building is seen in Washington, DC. (Photo by J. David Ake/Getty Images)

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There is a smart way—indeed, a necessary way—for Republicans to move a serious governing agenda through Congress this year. Credit for these core strategic insights belongs to Larry Kudlow: former Trump National Economic Council director, a veteran of the Reagan years at OMB, and now the host of Kudlow on FOX Business and the Larry Kudlow Show on WABC radio. He understands what too many Republicans in Washington have forgetten—growth, tax relief and national strength aren’t separate projects; they’re one project.

Republicans should stop dithering and use the reconciliation process to move through a unified package with only 51 Senate votes.

That package should include four pillars:

• The SAVE America Act should be folded into the reconciliation bill. Yes, its opponents will shriek that election-integrity legislation doesn’t belong there. But if the law requires federal verification mechanisms, administrative enforcement, implementation systems and supporting resources, then it plainly has a budgetary dimension. Draft it properly and fund it properly. Republicans shouldn’t act like frightened clerks, but like a governing majority.

• Congress should approve the President’s request for an additional $200 billion for the War Department to pay for the Iran war, an absolutely necessary action for our security and that of the Free World. By the way, the carping about the substantial expansion of future military outlays ignores the reality that the world these days is very dangerous. A nation that’s serious about peace must be serious about strength.

• Republicans should enact a major cut in the capital gains tax and index that levy for inflation. Taxing nominal gains that exist only because government has cheapened the dollar is economically dishonest. It’s a tax on illusion. It punishes investment, traps capital, slows entrepreneurship and reduces the very formation of wealth that lifts wages and living standards.

• This package should include a broad reduction in both individual and corporate tax rates. The case is overwhelming. Lower individual rates reward work, risk-taking, savings and small-business formation. We have seen this movie before. Cutting tax rates doesn’t impoverish a growing nation, it energizes one.

This is the genius of the Kudlow Solution: It’s not a grab bag. It’s a governing philosophy translated into legislative form. Election integrity strengthens citizenship. Defense spending strengthens security. Lower tax rates strengthen production. Capital gains relief strengthens investment. Together, they create an exciting package that tells the country Republicans understand how to use power when voters entrust it to them.

And that’s the real test here. Too often Republicans win elections promising renewal but then govern like apologetic caretakers. They let Senate procedure become an excuse for surrender. Reconciliation exists to move fiscal priorities with a simple majority. Use it.