Trump friend and fellow real estate mogul says look to Reagan for Trump's tax cut potential

It's time for new tax plan: Howard Lorber

Lowering taxes to encourage economic growth is the best way to tackle budget deficits, said Howard Lorber, a top real estate executive and friend of President Donald Trump.

"I think history shows it," the chairman of Douglas Elliman told CNBC's "Squawk Box" on Tuesday.

Ronald Reagan's 1986 tax reform, the last major tax overhaul, is an example of tax policy translating into economic growth, Lorber argued. "The only way to get rid of deficits is a growing economy."

Trying to wipe out deficits in a "stagnant economy with high taxes" is the wrong approach, he argued, making the case for Trump's promised tax cuts.

However, tax reform isn't perfect, said Lorber, acknowledging it may not meet every citizen's expectations.

"At the end of the day, it's probably going to be good for some and not quite as good for others. That's generally true in tax reform all the time," he said.

But Lorber is optimistic the president's team will confront any obstacles swiftly, efficiently and for the good of the taxpayer.

"The good news about this administration is they'll move quickly to do what's right," Lorber said. "So if they come up with a plan and it's not working the way they want it to work, it's going to be changed."