Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Lots of changes overnight on the trade front once again,
Speaker 2: lots of threats that we can explore with the former
Speaker 2: US House Speaker, Paul Right, speaker run.
Speaker 3: It's going to say you good to be with you.
Speaker 2: Let's think about the ideology at the sitting president. What
Speaker 2: is the ideology? What's your familiarity with the ideology around
Speaker 2: things like Tright?
Speaker 4: I think the best way to describe as America First.
Speaker 4: I think he's articulately in America first on trades, a
Speaker 4: little more more caantilistic, say than the traditional Republican you know,
Speaker 4: Reagan free trade. But America first is the quickest way
Speaker 4: of describing it. A lot of good fiscal policy, you know,
Speaker 4: regulatory policy, tax policy, there's a lot of optimism, frankly,
Speaker 4: but on trade, I mean, I'm sure you have an
Speaker 4: international audience here.
Speaker 3: There's going to be some trade friction, no two ways.
Speaker 2: About it, without a doubt. How do you feel about them?
Speaker 2: Cancil has taken over the Republican party.
Speaker 3: It's not the right step.
Speaker 4: Well, there's different kinds of Republicans. I'm a classical liberal,
Speaker 4: free market, free trade Republican. So I'm a different breed
Speaker 4: of a Republican. His red of populist Trump Republican is
Speaker 4: the ascendant breed. They're basically the dominant force in the
Speaker 4: Republican Party. Donald Trump is the dominant force in the
Speaker 4: Republican Party, no toys about it. But we have a
Speaker 4: coalition that is playing nice with each other right now.
Speaker 4: And frankly, I'm optimistic on a lot of policies that
Speaker 4: are coming together. And all of those policies will not
Speaker 4: happen if you have Republican disunity. So I think it's
Speaker 4: very important that Republicans stay unified. The executive branch has
Speaker 4: an enormous amount of power when it comes to trade policy.
Speaker 4: That's something that one hundred years ago Congress seated to
Speaker 4: the White House. But on all this other fiscal policy,
Speaker 4: Congress has a huge role to play, and it's really
Speaker 4: important that Republicans stay unified.
Speaker 3: With these razor thin majorities we have.
Speaker 1: One of the initiatives that they need to deal with
Speaker 1: is the deficit. And I'm focused very much on the
Speaker 1: bond markets, and I'm sure you are too, as a
Speaker 1: free market Republican, and I just wonder how much conviction
Speaker 1: you really see in both camps of the Republican Party,
Speaker 1: as you just laid out, to truly combat some of
Speaker 1: the deficit concerns that we feel here at DAVAS.
Speaker 4: They're definitely definicite hawks, and Congress no toys about it.
Speaker 4: Running the various committees in charge of this, the Budget Committee,
Speaker 4: the way the means can be, definance can be. They
Speaker 4: are deficit hawks. So first of all, you can't do
Speaker 4: well on your debt servicing if you don't have don
Speaker 4: alog GDP growth outpacing your debt servicing costs. So number one,
Speaker 4: fast economic growth is paramount. That's why this deregulation is
Speaker 4: very necessary. That's why extending tax reform is necessary. We
Speaker 4: don't want to hit the economy with a wet blanket
Speaker 4: like Biden did with the promise to higher taxes and
Speaker 4: more regulations.
Speaker 3: Really important on the debt.
Speaker 4: The only way to get the debt under control is
Speaker 4: to do in title my reform that's more of a
Speaker 4: comprehensive thing. That's what I spent most of my time
Speaker 4: in Congress working on.
Speaker 3: I think there's a way to do it.
Speaker 4: There's the most bipartisan solution that's out there right now.
Speaker 4: Are these fiscal commissions. There's a lot of talk about that.
Speaker 4: It wouldn't surprise me if Congress acted in a bipart
Speaker 4: is a way on a fiscal commission, not like Bull Simpson,
Speaker 4: which I served on, but one with teeth that requires action.
Speaker 4: That's probably the biggest talk in town right now about
Speaker 4: real debt reduction, but in reconciliation.
Speaker 3: Who knows, you could see some debt reduction occur there too.
Speaker 1: We've already heard though from this administration, they're not going
Speaker 1: to cut Social Security, They're not going to cut Medicare,
Speaker 1: They're not going to cut any of those titlements that
Speaker 1: they really want to cut. And I just wonder what I.
Speaker 4: Would say they really want to cut way. Everybody who
Speaker 4: ran for president lately has been saying we're not touching
Speaker 4: these things.
Speaker 3: I don't agree with that. I'm a different, like I said,
Speaker 3: sim a Bread and it's going to.
Speaker 1: Hit the wall that there's going to be a real
Speaker 1: challenge to undermines some of the optimism that we're hearing here.
Speaker 4: Well, within a decade you have both the Medicare part
Speaker 4: A trust fund and the Social Career Trust Fund going
Speaker 4: bankrupt and solve it. So you have to do something
Speaker 4: about that you've got to step in front of that.
Speaker 4: By the way, you don't need to cut these programs
Speaker 4: to fix this.
Speaker 3: You can grow them a little more slowly.
Speaker 4: You can reform these programs, and you can do it
Speaker 4: in a prospective way so that you don't affect people
Speaker 4: in or near retirement, but do it for the younger
Speaker 4: generation like my ex generation.
Speaker 3: So there are good reforms.
Speaker 4: Out there that I think are politically pattable that move
Speaker 4: the needle on the debt tremendously. The question is whether
Speaker 4: or not. And by the way, if it were easy,
Speaker 4: we had already done it. I pass four budgets in
Speaker 4: the House when I Budget chair that did this, but
Speaker 4: they did nowhere in the Senate.
Speaker 3: So this is really hard to do.
Speaker 2: Which if for an extension of the tax cuts and
Speaker 2: jobs absolutely, why.
Speaker 4: Does not make sense because we want growth. If you
Speaker 4: don't do this, the kind of tax increases that are
Speaker 4: going to hit the economy first of all, immedia expensing,
Speaker 4: R and D amortization. These are very important business tax relief.
Speaker 4: But what people who aren't Americans don't necessarily see is
Speaker 4: more than two thirds of our businesses are not CEA corporations.
Speaker 4: They're passed through LLC sub sub Chapter A S corporations.
Speaker 4: They pay their taxes as individuals. There's a massive tax
Speaker 4: increase on those businesses. The engine of job creation in
Speaker 4: America if you let those things expire. So that's really important.
Speaker 4: It's this thing we call section one N nine A.
Speaker 4: I don't want to get too deep in the details.
Speaker 3: We haven't got signed.
Speaker 4: You're gonna hit, You're gonna it's gonna be bad for
Speaker 4: the economy if you let those tax cuts expire.
Speaker 3: So you do need to extend.
Speaker 2: Soluston said the same thing. They said, it could be
Speaker 2: an economic climacy. Could you describe that colimacy for us?
Speaker 4: Just how about I'd say about eighty percent of small
Speaker 4: businesses would have a massive tax increase, over twenty percent
Speaker 4: tax increase. And oh, by the way, you'll put them
Speaker 4: at a massive competitive disadvantage against corporations, huge job dislocation.
Speaker 4: And most of our jobs come from small and medium businesses.
Speaker 4: You cannot hit those with a big tax increase.
Speaker 2: You know, that's difficult to re import together these bills.
Speaker 2: That's only one piece of the tax fIF Yeah, I
Speaker 2: wrote the last one.
Speaker 4: On nin you're it was I had a twenty two
Speaker 4: seat margin easier to play with the.
Speaker 2: Twenty and a half dozen mondins this time around. How
Speaker 2: difficult is it going to base it to an I
Speaker 2: think above and beyond just extending.
Speaker 3: This is why I.
Speaker 4: Say Republicans need to stay unified, because all of us
Speaker 4: agree on this fiscal this type of fiscal policy. We
Speaker 4: may have difference agreements on trade, we don't have disagreements
Speaker 4: on this really important that Republican factionalism doesn't occur. They
Speaker 4: stay unified and get this done. The country's counting on us.
Speaker 4: Donald Trump promised it, and one of the reasons why
Speaker 4: people are so optimistic is because they believe this is
Speaker 4: going to happen.
Speaker 3: At Tanao, we.
Speaker 4: Pulled seven hundred CEOs ten trillion dollars a wealth and
Speaker 4: it's a thirty two point swing in optimism from last
Speaker 4: year to this year.
Speaker 2: We've seen it on the USC Konda can tie fake iron.
Speaker 2: We hear it repeatedly every single ape that optimism has.
Speaker 4: To be translated into policy for it to be realized,
Speaker 4: and that means past this bill.
Speaker 3: Speak to Ron, Thank you, sir,