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CNBC Exclusive: White House Economic Advisor Allan Hubbard Reveals White House Corporate Tax Cut Plan on "Kudlow & Company"

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When: Tuesday, November 6 at 7:45 PM ET
Where: CNBC's "Kudlow & Company"

The following is an excerpt of the unofficial transcript of a CNBC interview with White House Economic Advisor, Alan Hubbard, on CNBC's "Kudlow & Company" today. All references must be sourced to CNBC.

During the interview with CNBC's Larry Kudlow, Hubbard revealed that the Bush administration is working on a plan to cut corporate taxes next year. Hubbard told Kudlow that the tax cut plan will be part of the 2008 budget proposal. Treasury Secretary Hank Paulson is working on details.

KUDLOW: WHEN ARE YOU GOING TO CUT THE CORPORATE TAX? WHEN IS THERE GOING TO BE A CUT IN THE CORPORATE TAX?

HUBBARD: THERE'S NO QUESTION THAT OUR CORPORATE TAX SYSTEM NEEDS TO BE IMPROVED. WE ARE, I THINK, OUT OF THE -- ALL OF THE DEVELOPED COUNTRIES IN THE WORLD, OUR CORPORATE TAXES ARE THE SECOND HIGHEST. THAT'S NOT GOOD FOR JOBS. THAT'S NOT GOOD FOR THE STANDARD OF LIVING OF THE AMERICAN PEOPLE. THAT'S WHY HANK PAULSEN WILL BE PROPOSING IN THE NOT TOO DISTANT FUTURE A CORPORATE TAX REFORM THAT IS HOPEFULLY GOING TO DRAMATICALLY REDUCE CORPORATE TAX RATE.

KUDLOW: NOT TOO DISTANT. DOES THAT MEAN THE NEXT BUDGET? WE'RE IN NOVEMBER. YOU GUYS ARE BUTTONING DOWN YOUR BUDGET. ROOM 248 IN THE OLD EXECUTIVE OFFICE BUILDING. I SPENT MY LIFE THERE. I SPENT THREE AND A HALF YEARS THERE IN 1981, 2, 3 AND 4. I DID HEAR THAT RIGHT? THIS SAY BULLETIN. EXCLUSIVE STUFF.

HUBBARD: I WON'T DISCLOSE WHAT IS IN OUR BUDGET BUT I KNOW HANK IS WORKING AND THAT HIS FOLKS AT THE TREASURY ARE WORKING VERY HARD DEVELOPING ALTERNATIVES FOR THE CORPORATE TAX SYSTEM. THERE'S NO QUESTION THAT THE CURRENT SYSTEM IS NOT -- IT MAKES -- IT IS NOT COMPETITIVE WITH THE REST OF THE COUNTRIES IN THE WORLD.




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