Make sure to tune into tonight’s special edition of CNBC’s “Kudlow & Company” where Larry heads to our nation’s capital for an exclusive one-on-one interview with President Bush.

Topics include the state of our economy, energy, Fed Chairman Ben Bernanke and executive compensation.

The Wall Street Journal’s Steve Moore will join former Labor Secretary Robert Reich in a spirited debate addressing Larry’s interview with the President.

“Kudlow & Company” will air at its usual time at 5:00pm EST on CNBC.

We hope you’ll join us.

Larry will be appearing as a guest on Hugh Hewitt’s nationally syndicated radio show this evening at approximately 7:15pm EST. You can also listen online via Hugh’s website at www.hughhewitt.com.

If you miss tonight’s show you can access the transcript at www.radioblogger.com.

According to Action Economics, daily data from the U.S. Treasury for April show that the booming economy produced soaring tax receipts that came in 15 percent above a year ago.

Spending was only 2 percent ahead of last year. So, the FY 2006 budget gap should come in around $270 billion dollars. That’s much lower than the CBO estimate of $337 billion dollars, and vastly lower than the OMB prediction of $423 billion dollars.

As a share of GDP, this year’s gap will be only 2.1 percent, and could be only 1.6 percent next year, since state and local governments are actually running surpluses. The combined budget gap will be even smaller.

Is it possible that with lower tax rates the booming economy is throwing off ever-greater tax revenues? Didn’t someone once call that the Laffer Curve?

It’s the American economic boom.

The greatest story never told.

From today’s Wall Street Journal:

“With the House and Senate preparing to vote on extending George W. Bush’s investment tax cuts, it’s no surprise the cries against “tax giveaways to the rich” grow increasingly shrill. Just yesterday Senate Minority Leader Harry Reid charged that the Bush tax plan “offers next to nothing to average Americans while giving away the store to multi-millionaires” and then fumed that it will “do much more for ExxonMobil board members than it will do for ExxonMobil customers.”

Oh really. New IRS data released last month tell a very different story: In the aftermath of the Bush investment tax cuts, the federal income tax burden has substantially shifted onto the backs of the wealthy. Between 2002 and 2004, tax payments by those with adjusted gross incomes (AGI) of more than $200,000 a year, which is roughly 3% of taxpayers, increased by 19.4% — more than double the 9.3% increase for all other taxpayers.

Between 2001 and 2004 (the most recent data), the percentage of federal income taxes paid by those with $200,000 incomes and above has risen to 46.6% from 40.5%. In other words, out of every 100 Americans, the wealthiest three are now paying close to the same amount in taxes as the other 97 combined. (Emphasis added). The richest income group pays a larger share of the tax burden than at anytime in the last 30 years with the exception of the late 1990s — right before the artificially inflated high tech bubble burst…”

Enough of the class warfare nonsense.

As my old friend Steve Moore points out, facts are facts.

We mourn the passing of our dear, good friend Louis Rukeyser. He was the original, first-of-a-kind, one-of-a-kind, television financial journalist, who really spawned all the business and financial shows, including CNBC.

He was a wonderful friend who did much for my career.

After I fell off my horse, and began my new sober journey in life, Lou brought me back on his program on a regular basis. For that I will be eternally grateful.

Much, much more important, it was Lou Rukeyser who spawned the Investor Class by bringing investment news and opinions every week to millions of people in a clear way that they could understand and act on.

He introduced the general public to numerous financial experts with diverse opinions, always presented with clarity and good humor.

Lou was brilliant man and a classy gent.

Two summers ago, he spoke to a large dinner party at our home in Redding, Connecticut. It was one of his last public appearances. As always, he was an optimist.

May this good man rest in peace.

President Bush delivered a spot-on, bang-up speech promoting tax cuts and economic growth today, following his strong news conference last Friday. One key line: ‘The Democrats are consistent, they are consistently pessimistic.’

The president is cooking.

He’s hot.

He’s framing the debate.

The Democrats want to raise your taxes (by letting them expire). Republicans want to cut them. The Democrats want to take your money for more government spending. Republicans want to let you keep more of what you earn.

Bush was positive, optimistic, and confident.

He blasted corrupt budget earmarks along with overspending in general. He drew a line in the sand for the emergency supplemental budget bill. He threatened to veto.

The GOP is getting close to their tax-cut plan to extend the investor tax cuts on dividends and cap gains and relieving the AMT tax burden.

Bush is on the offensive.

He is making the case for tax-cut driven growth. He is providing the pro-growth political backdrop for the November elections.

He is appealing to the Investor Class and to small business owner operators. He is underscoring his ownership society theme.

And here’s the really interesting part of this story. While Mainstream Wall Street economists and the Fed continue to expect an economic slowdown (as they have for the last three years), the reality is the economy may actually be picking up speed.

Check out today’s factory orders report for March, where backlogs are up 13.5 percent at an annual rate over the past three months, and orders for high-tech are up 73.7 percent annually for the last three months.

These are unbelievable numbers. The ISM non-manufacturing index was significantly stronger than expected.

Let me summarize: Conventional wisdom Demand-Siders continue to ‘misunderestimate’ the economic growth incentive power of lower marginal tax rates. Especially reduced rates on capital, which is the seed-corn for new businesses, new jobs and higher incomes. Easy capital, with higher investment returns after tax, are driving this economic boom.

It is the greatest story never told.

But now the President is telling it.