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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Lots of changes overnight on the trade front once again,

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Speaker 2: lots of threats that we can explore with the former

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Speaker 2: US House Speaker, Paul Right, speaker run.

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Speaker 3: It's going to say you good to be with you.

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Speaker 2: Let's think about the ideology at the sitting president. What

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Speaker 2: is the ideology? What's your familiarity with the ideology around

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Speaker 2: things like Tright?

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Speaker 4: I think the best way to describe as America First.

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Speaker 4: I think he's articulately in America first on trades, a

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Speaker 4: little more more caantilistic, say than the traditional Republican you know,

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Speaker 4: Reagan free trade. But America first is the quickest way

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Speaker 4: of describing it. A lot of good fiscal policy, you know,

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Speaker 4: regulatory policy, tax policy, there's a lot of optimism, frankly,

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Speaker 4: but on trade, I mean, I'm sure you have an

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Speaker 4: international audience here.

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Speaker 3: There's going to be some trade friction, no two ways.

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Speaker 2: About it, without a doubt. How do you feel about them?

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Speaker 2: Cancil has taken over the Republican party.

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Speaker 3: It's not the right step.

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Speaker 4: Well, there's different kinds of Republicans. I'm a classical liberal,

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Speaker 4: free market, free trade Republican. So I'm a different breed

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Speaker 4: of a Republican. His red of populist Trump Republican is

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Speaker 4: the ascendant breed. They're basically the dominant force in the

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Speaker 4: Republican Party. Donald Trump is the dominant force in the

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Speaker 4: Republican Party, no toys about it. But we have a

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Speaker 4: coalition that is playing nice with each other right now.

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Speaker 4: And frankly, I'm optimistic on a lot of policies that

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Speaker 4: are coming together. And all of those policies will not

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Speaker 4: happen if you have Republican disunity. So I think it's

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Speaker 4: very important that Republicans stay unified. The executive branch has

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Speaker 4: an enormous amount of power when it comes to trade policy.

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Speaker 4: That's something that one hundred years ago Congress seated to

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Speaker 4: the White House. But on all this other fiscal policy,

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Speaker 4: Congress has a huge role to play, and it's really

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Speaker 4: important that Republicans stay unified.

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Speaker 3: With these razor thin majorities we have.

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Speaker 1: One of the initiatives that they need to deal with

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Speaker 1: is the deficit. And I'm focused very much on the

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Speaker 1: bond markets, and I'm sure you are too, as a

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Speaker 1: free market Republican, and I just wonder how much conviction

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Speaker 1: you really see in both camps of the Republican Party,

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Speaker 1: as you just laid out, to truly combat some of

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Speaker 1: the deficit concerns that we feel here at DAVAS.

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Speaker 4: They're definitely definicite hawks, and Congress no toys about it.

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Speaker 4: Running the various committees in charge of this, the Budget Committee,

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Speaker 4: the way the means can be, definance can be. They

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Speaker 4: are deficit hawks. So first of all, you can't do

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Speaker 4: well on your debt servicing if you don't have don

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Speaker 4: alog GDP growth outpacing your debt servicing costs. So number one,

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Speaker 4: fast economic growth is paramount. That's why this deregulation is

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Speaker 4: very necessary. That's why extending tax reform is necessary. We

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Speaker 4: don't want to hit the economy with a wet blanket

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Speaker 4: like Biden did with the promise to higher taxes and

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Speaker 4: more regulations.

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Speaker 3: Really important on the debt.

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Speaker 4: The only way to get the debt under control is

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Speaker 4: to do in title my reform that's more of a

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Speaker 4: comprehensive thing. That's what I spent most of my time

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Speaker 4: in Congress working on.

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Speaker 3: I think there's a way to do it.

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Speaker 4: There's the most bipartisan solution that's out there right now.

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Speaker 4: Are these fiscal commissions. There's a lot of talk about that.

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Speaker 4: It wouldn't surprise me if Congress acted in a bipart

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Speaker 4: is a way on a fiscal commission, not like Bull Simpson,

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Speaker 4: which I served on, but one with teeth that requires action.

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Speaker 4: That's probably the biggest talk in town right now about

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Speaker 4: real debt reduction, but in reconciliation.

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Speaker 3: Who knows, you could see some debt reduction occur there too.

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Speaker 1: We've already heard though from this administration, they're not going

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Speaker 1: to cut Social Security, They're not going to cut Medicare,

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Speaker 1: They're not going to cut any of those titlements that

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Speaker 1: they really want to cut. And I just wonder what I.

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Speaker 4: Would say they really want to cut way. Everybody who

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Speaker 4: ran for president lately has been saying we're not touching

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Speaker 4: these things.

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Speaker 3: I don't agree with that. I'm a different, like I said,

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Speaker 3: sim a Bread and it's going to.

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Speaker 1: Hit the wall that there's going to be a real

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Speaker 1: challenge to undermines some of the optimism that we're hearing here.

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Speaker 4: Well, within a decade you have both the Medicare part

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Speaker 4: A trust fund and the Social Career Trust Fund going

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Speaker 4: bankrupt and solve it. So you have to do something

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Speaker 4: about that you've got to step in front of that.

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Speaker 4: By the way, you don't need to cut these programs

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Speaker 4: to fix this.

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Speaker 3: You can grow them a little more slowly.

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Speaker 4: You can reform these programs, and you can do it

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Speaker 4: in a prospective way so that you don't affect people

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Speaker 4: in or near retirement, but do it for the younger

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Speaker 4: generation like my ex generation.

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Speaker 3: So there are good reforms.

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Speaker 4: Out there that I think are politically pattable that move

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Speaker 4: the needle on the debt tremendously. The question is whether

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Speaker 4: or not. And by the way, if it were easy,

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Speaker 4: we had already done it. I pass four budgets in

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Speaker 4: the House when I Budget chair that did this, but

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Speaker 4: they did nowhere in the Senate.

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Speaker 3: So this is really hard to do.

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Speaker 2: Which if for an extension of the tax cuts and

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Speaker 2: jobs absolutely, why.

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Speaker 4: Does not make sense because we want growth. If you

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Speaker 4: don't do this, the kind of tax increases that are

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Speaker 4: going to hit the economy first of all, immedia expensing,

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Speaker 4: R and D amortization. These are very important business tax relief.

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Speaker 4: But what people who aren't Americans don't necessarily see is

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Speaker 4: more than two thirds of our businesses are not CEA corporations.

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Speaker 4: They're passed through LLC sub sub Chapter A S corporations.

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Speaker 4: They pay their taxes as individuals. There's a massive tax

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Speaker 4: increase on those businesses. The engine of job creation in

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Speaker 4: America if you let those things expire. So that's really important.

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Speaker 4: It's this thing we call section one N nine A.

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Speaker 4: I don't want to get too deep in the details.

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Speaker 3: We haven't got signed.

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Speaker 4: You're gonna hit, You're gonna it's gonna be bad for

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Speaker 4: the economy if you let those tax cuts expire.

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Speaker 3: So you do need to extend.

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Speaker 2: Soluston said the same thing. They said, it could be

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Speaker 2: an economic climacy. Could you describe that colimacy for us?

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Speaker 4: Just how about I'd say about eighty percent of small

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Speaker 4: businesses would have a massive tax increase, over twenty percent

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Speaker 4: tax increase. And oh, by the way, you'll put them

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Speaker 4: at a massive competitive disadvantage against corporations, huge job dislocation.

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Speaker 4: And most of our jobs come from small and medium businesses.

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Speaker 4: You cannot hit those with a big tax increase.

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Speaker 2: You know, that's difficult to re import together these bills.

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Speaker 2: That's only one piece of the tax fIF Yeah, I

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Speaker 2: wrote the last one.

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Speaker 4: On nin you're it was I had a twenty two

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Speaker 4: seat margin easier to play with the.

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Speaker 2: Twenty and a half dozen mondins this time around. How

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Speaker 2: difficult is it going to base it to an I

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Speaker 2: think above and beyond just extending.

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Speaker 3: This is why I.

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Speaker 4: Say Republicans need to stay unified, because all of us

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Speaker 4: agree on this fiscal this type of fiscal policy. We

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Speaker 4: may have difference agreements on trade, we don't have disagreements

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Speaker 4: on this really important that Republican factionalism doesn't occur. They

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Speaker 4: stay unified and get this done. The country's counting on us.

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Speaker 4: Donald Trump promised it, and one of the reasons why

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Speaker 4: people are so optimistic is because they believe this is

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Speaker 4: going to happen.

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Speaker 3: At Tanao, we.

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Speaker 4: Pulled seven hundred CEOs ten trillion dollars a wealth and

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Speaker 4: it's a thirty two point swing in optimism from last

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Speaker 4: year to this year.

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Speaker 2: We've seen it on the USC Konda can tie fake iron.

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Speaker 2: We hear it repeatedly every single ape that optimism has.

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Speaker 4: To be translated into policy for it to be realized,

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Speaker 4: and that means past this bill.

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Speaker 3: Speak to Ron, Thank you, sir,