Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The news coming out
Speaker 1: of Washington has so much to do with what's happening
Speaker 1: right now on Wall Street. And it's where we start
Speaker 1: our conversation with Congresswoman Nicole malliatakas the Republican from New
Speaker 1: York's eleventh District, with us live from World Headquarters in
Speaker 1: New York, and Congresswoman, we want to welcome you back,
Speaker 1: as always to Bloomberg TV and Radio. Do you worry
Speaker 1: about the intersection in this case of Washington and Wall Street?
Speaker 1: The words of the President, or at least as he
Speaker 1: posted on truth Social appear to be pulling us lower
Speaker 1: here referring to the Fed chair as a major loser,
Speaker 1: even though he did appoint him initially. This is the
Speaker 1: impact of the rhetoric in American politics now.
Speaker 2: No, look, I think that we need to be focused
Speaker 2: on governing with a confident, steady hand here. I think
Speaker 2: the most important thing that we can be doing is
Speaker 2: making sure that we pass this very important tax package
Speaker 2: that we prevent an expiration of the existing twenty seventeen
Speaker 2: Tax Cutting Jobs Act, That in itself, I think, I
Speaker 2: think is something that can send a very strong message
Speaker 2: that we get back to Washington next week and we
Speaker 2: see pieces of this bills being furnished by the individual committees.
Speaker 2: I think there's a question right now around the world
Speaker 2: whether we can get the job done. I believe that
Speaker 2: we can, and we must or else it's a four
Speaker 2: trillion dollar tax hike, and you'll see a lot of
Speaker 2: the provisions that were so important to the American economy expire.
Speaker 2: We have so many things at stake here. You have
Speaker 2: interest deductibility, R and D expensing, you have bonus appreciation.
Speaker 2: You have the corporate tax rate that would go from
Speaker 2: twenty one percent to thirty five percent if this were
Speaker 2: to expire, and of course the other provisions that lifted
Speaker 2: millions of Americans out of poverty, that created seven million jobs.
Speaker 2: There's a lot here, and we need to make sure
Speaker 2: that we not only pass it, but that we expand
Speaker 2: it in a way that we add more pro growth
Speaker 2: policies so we can see the economy really prosper and
Speaker 2: repeatiation of manufacturing is another big component of as well
Speaker 2: that I've been working on well.
Speaker 3: And we know, Congresswoman that any expansion of a tax
Speaker 3: cuts will require offsets based off of the kind of
Speaker 3: framework that the House is working with here, so it
Speaker 3: becomes a question of the spending cuts. I'm sure you're
Speaker 3: well aware that the House Energy and Commerce Committee is
Speaker 3: going to begin marking up its portion of this massive
Speaker 3: reconciliation bill, and that will be the medicaid question. Have
Speaker 3: you seen a list of proposals or any kind of
Speaker 3: draft around what exactly will be put forward when it
Speaker 3: comes to Medicaid, knowing you have looked for assurances on
Speaker 3: that front, do you expect you'll see one before the markup?
Speaker 2: Well, what we have seen is the menu of options, right,
Speaker 2: and we're talking about the entire energy and healthcare portfolio,
Speaker 2: so it's not just Medicaid, and obviously and deals with regulations,
Speaker 2: It deals with broadband spectrum sales, It deals with other components,
Speaker 2: emission vehicles, things like that that could be offsets with
Speaker 2: the medicaid piece. We've made it very clear to the Speaker,
Speaker 2: to the chairman of this committee, as well as to
Speaker 2: the President states that there is a group of us
Speaker 2: that will not support any package that would diminish, meaning
Speaker 2: taking individuals who are legally eligible for Medicaid off the rolls.
Speaker 2: If they are eligible, they need to be able to
Speaker 2: keep their eligibility. Now, aside from that, specifically, we're talking
Speaker 2: about our senior citizens, our people with disabilities, children with
Speaker 2: developmental disabilities, pregnant women. These are people that we are
Speaker 2: really laser focused on. Yes, we can implement work requirements
Speaker 2: on people that are able bodied, they should be contributing
Speaker 2: in this economy and working. That would remove them off
Speaker 2: of Medicaid and put them on most likely private insurance,
Speaker 2: saving the government money as well, and of course the
Speaker 2: fraud getting rid of it, which accounts for roughly fifty
Speaker 2: billion dollars a year in Medicaid alone. That's five hundred
Speaker 2: billion dollars over ten years. So when you're looking for
Speaker 2: a savings of roughly eight hundred and eighty billion dollars
Speaker 2: over ten years, that's a big chunk of it right
Speaker 2: there that we're going to say. And so we've just
Speaker 2: made very clear that in terms of reimbursement rates for
Speaker 2: our states New York for example, fifty percent federal reimbursement,
Speaker 2: we will not allow that to be lowered. So that
Speaker 2: was one thing that we pushed back on, as well
Speaker 2: as per capita caps on traditional Medicaid. That's something that
Speaker 2: we've also said as a red line for us, and
Speaker 2: we've received positive feedback from the Speaker and a commitment
Speaker 2: that they're not going to touch those things.
Speaker 1: That's really interesting. We saw your letter to House leadership
Speaker 1: on this last week Congress. So when there's been a
Speaker 1: lot of talk about a millionaire's tax, and I wonder
Speaker 1: if that's something you might warm up to if it
Speaker 1: means not rating Medicaid, Well, it's.
Speaker 2: Certainly on the table. It's being considered. We have to
Speaker 2: make sure that we have a tax structure that is fair. Obviously,
Speaker 2: the President has a lot of priorities which we share.
Speaker 2: We want to see working class, middle class communities get
Speaker 2: some relief. We want to see the salt cap increase,
Speaker 2: the deduction increase for people that I represent here in
Speaker 2: New York, we're struggling with high property tax and income
Speaker 2: taxes as well. We want to make sure that we're
Speaker 2: protecting our seniors who are on Social Security and that
Speaker 2: they're not having to pay taxes on their small Social
Speaker 2: Security checks and so who want to do these things.
Speaker 2: Then we need to find the money to offset it,
Speaker 2: and so we're looking at every option on the table.
Speaker 2: I think that we're having serious discussions about where this
Speaker 2: money is going to come from, and that's one of
Speaker 2: the options that is currently out there. But we also
Speaker 2: want to make sure that we're preserving the other various
Speaker 2: aspects of the TCJA that were so critical for our economy,
Speaker 2: that created jobs, allowed companies to expand and invest, and
Speaker 2: repatriate manufacturers. Another big piece of this that we're very
Speaker 2: much focused on, how do we give a lower rate
Speaker 2: for new facilities that are built here or expanded here
Speaker 2: to create and manufacture so we can repatriate some of
Speaker 2: this stuff that's happening overseas, in particular pharmaceuticals that we're
Speaker 2: relying on communist China for such a huge, huge portion
Speaker 2: of our medication here in the United States. That has
Speaker 2: to end. If we've learned anything from COVID must be
Speaker 2: a priority in this package.
Speaker 3: Congress, someone, as you talk about the various options here,
Speaker 3: is one of the options being considered taxing carried interests?
Speaker 3: Is ordinary income? Is that something you would support if
Speaker 3: it's on the table.
Speaker 2: Well, that is one of the proposals that the White
Speaker 2: House has put forward. They do want to address the
Speaker 2: carried interest This is something that we've heard a lot
Speaker 2: from people in opposition. Obviously, the real estate industry venture
Speaker 2: capitalists very concerned about the carried interest proposal. It's on
Speaker 2: the table, but we are still evaluating this and other options.
Speaker 2: The other thing that has been on the table, which
Speaker 2: we've met with many real estate industry individuals here in
Speaker 2: New York today, actually was about the sea salt corporate
Speaker 2: salt for property taxes for income taxes here in the state.
Speaker 2: This one, in particular is very concerning because the real
Speaker 2: estate industry cannot bear to have the sea salt removed
Speaker 2: basically or imposed on the property portion. So if they
Speaker 2: start seeing that they can't deduct this business expense from
Speaker 2: their federal taxes, it will put really a big burden
Speaker 2: on these real estate companies, these buildings, and we'll see
Speaker 2: maybe foreclosures, we'll see property values decline, which will then
Speaker 2: reduce the roles that our local government receives on property taxes.
Speaker 2: So I think that's a big one that I've been
Speaker 2: pushing back on just as a member from New York City.
Speaker 2: It could be very detrimental to our city, but it
Speaker 2: affects municipalities all across the country, particularly those states that
Speaker 2: don't have an income tax, states like Texas, in Florida,
Speaker 2: rely a lot on real estate taxes.
Speaker 1: Congressmoman, we only have a minute left. I'm curious, did
Speaker 1: you pay a congestion tax to get to our studio
Speaker 1: earlier today? I thought it was coming down on April
Speaker 1: twentieth per order the Transportation Department.
Speaker 2: Well, unfortunately, our governor in the end want to continue
Speaker 2: to violate federal law, and so I was forced to
Speaker 2: pay that fee, but I hope not for long. And
Speaker 2: I was very happy to hear President Trump and Secretary
Speaker 2: Duffy today say that they're giving them just one more month. Russ.
Speaker 2: They're going to look at other measures to try to
Speaker 2: penalize the state and the MTA for not complying with
Speaker 2: federal law. The President was right to rescind that approval
Speaker 2: from Joe Biden. That was basically a rubber stamp without
Speaker 2: the environmental impact statement required underneath it. That is why
Speaker 2: I am among those who have sued the MTA and
Speaker 2: the state. We hope that they comply because it's an
Speaker 2: unfair cash grab on the people I represent.
Speaker 3: All Right, we'll leave it there. Congresswoman, thank you, as
Speaker 3: always for your time. That is a Republican Congresswoman Nicole
Speaker 3: Mallie Takis of New York, joining us from our global
Speaker 3: headquarters in New York,