Larry Kudlow, the veteran financial guru and former economist in the Reagan administration, said President Donald Trump’s proposed tax cuts will boost incentives for Americans to work, invest and save.

“The war against business is over,” Kudlow said in an interview from Washington with CNBC. “The biggest single missing ingredient in tax policy over the past 10 years, or even 15 years, is a competitive corporate tax code that produces business investment.”

Trump’s top economic adviser Gary Cohn and Treasury Secretary Steven Mnuchin on Wednesday revealed a plan to slash the federal income-tax rate to 15 percent for corporations, small businesses and partnerships. The plan calls for a one-time levy on about $2.6 trillion in U.S. company profits kept in foreign countries, where they avoid double taxation. Most foreign profits would be exempt from U.S. taxes, unlike the current system of taxing company income regardless of the location.

“These corporate tax cuts go directly to those points to make better rewards and incentives and make it easier to build a business for ten years,” said Kudlow, who helped to shape the Trump campaign’s economic plan.

Earlier in the day, he echoed his prior statements that the business tax cut will pay for itself by unleashing U.S. productivity and economic growth of 3 percent or more. The U.S. economy has grown by 3.2 percent a year on average since 1947, but never exceeded 3 percent during the Obama administration, the first time in history.

“The greatest antidote to budget deficits is economic growth. We have proved that in the '60s, we proved that under Kennedy and Reagan and Clinton,” Kudlow said of prior administrations. “The reason deficits are so huge: we haven't grown in 15 years. The revenues haven't come pouring in. We're not getting enough new investment.”

The S&P 500 rose 0.2 percent to 2,393.85 by 3:27 p.m. New York time. It hit a record close of 2,395.96 on March 1.

Kudlow is host of "The Larry Kudlow Show" and author of "JFK and the Reagan Revolution: A Secret History of American Prosperity," written with Brian Domitrovic and published by Portfolio.

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