Are you afraid of a recession? Cut taxes, not interest rates.

At his press conference yesterday, President Trump made it 100 percent clear that he is the candidate for tax cuts. And Vice President Harris is the candidate for tax increases.

Maybe she thinks she’s the new Walter Mondale, who campaigned for tax increases and lost 49 states. After all, her running mate is, like Mondale, a far-left progressive from Minnesota.

With stock markets shaky, unemployment rising and the economy faltering, Trump’s promise of tax cuts – and his fight against Harris’ plans to raise taxes – will be a key issue in the final three months of the campaign.

At yesterday’s press conference, Trump noted: “They always say, ‘We’re going to give you a tax increase.'” He added: “In all the years I’ve studied politics, I’ve never seen anyone get elected because they said, ‘We’re going to give you a tax increase.'” He also said: “I’m going to make it so that there’s no tax on retirement savings for retirees. I’m not going to put a tax on tips either.”

That’s it. That sends a very strong signal to voters, particularly middle-class voters who are increasingly concerned about unemployment.

For example, columnist Salina Zito in the New York Sun reminds us that after battling high prices, America’s middle class is now also facing rising unemployment.

While overall unemployment has risen from 3.4 percent to 4.3 percent, unemployment among people without a college degree recently reached 4.6 percent – ​​so it’s a double whammy: high prices and job losses.

These are typical workers, construction workers, oil and gas workers, people who work with their hands every day.

It is an unknown species to Wall Street and Silicon Valley, but it is the backbone of America.

And Trump speaks directly to them when he says: “I will lower your taxes and raise your wages.”

He explains it this way: “Now we have our tax cuts coming, the biggest in history. Do it, as you know, very soon,” he adds. “If they don’t extend them, that’s a fourfold tax increase compared to what you have now, and that will destroy the economy.”

Consider that average families saw wages decline by about 4 percent during the Biden-Harris years.

To make the threat of a tax increase by the Kamala-nomics movement even clearer, MAGA PAC is releasing a “Kamala Tax Calculator.”

Here’s an example: A married person under 65 filing a joint tax return, earning $75,000, and having two children would lose $2,828 each year under a Kamala-nomics tax increase. That’s real money.

Now, as for the weakening economy, which may be entering a recession, I am convinced that a reduction in tax rates would do far more good for the economy than an emergency cut in the Fed’s key interest rate.

If the Fed begins to drastically cut interest rates and increase the money supply, we will see a new wave of inflation.

The last thing we need is another Fed stimulus to the economy. The world is already over-leveraged and over-indebted.

The “carry trade” of the Japanese yen has shaken the stock markets.

Domestically, the “Magnificent Seven” among technology stocks are over-indebted.

In addition, consumers have accumulated far too much debt and the number of defaults is increasing.

The economy does not lack money and debt, it lacks incentives for free market economy.

But let’s assume that Washington is really worried about a recession. How about an emergency cut in corporate and personal income tax rates to increase economic incentives to work more and produce more goods, which would increase growth while curbing prices?

And then there’s some “drilling, baby, drilling” to produce more oil and gas at lower energy prices.

More growth, lower inflation.

This is essentially what Mr. Trump is talking about.

Tax cuts promote growth and opportunity, tax increases plunge us into recession.

This is why Trump’s message about tax cuts is so apt.

From Mr. Kudlow’s show on Fox Business Network.