WEBVTT - Rep. Mike Lawler Talks SALT Cap, Trump Meeting 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.800 --> 0:00:11.280 Republicans in Congress gearing up to negotiate an extension of 0:00:11.280 --> 0:00:14.440 Donald Trump's twenty seventeen tax cuts. A group of House 0:00:14.480 --> 0:00:17.319 Republicans we're invited to meet with Trump this weekend at 0:00:17.360 --> 0:00:19.880 Mari Laco and are expected to push to include an 0:00:19.920 --> 0:00:24.079 expansion of salt tax deductions in Congress's upcoming package. A 0:00:24.120 --> 0:00:25.599 place to say that joining us now is one of 0:00:25.600 --> 0:00:29.800 those House Republicans. Congressman Michael Awner of New York Congressman Fantastical, 0:00:29.880 --> 0:00:32.080 catch up with you once again, sir. I just want 0:00:32.120 --> 0:00:34.280 to know, from your perspective, how many friends you have 0:00:34.400 --> 0:00:36.760 outside of New York in the House that would be 0:00:36.760 --> 0:00:37.800 on board with this effort. 0:00:39.479 --> 0:00:41.360 A lot more than people realize. 0:00:41.760 --> 0:00:45.440 Obviously New York, New Jersey, and California three of the 0:00:45.640 --> 0:00:50.919 high tax states where this has most acutely impacted. Certainly 0:00:51.600 --> 0:00:55.760 we have a coalition, and given our small majority in 0:00:55.800 --> 0:01:00.880 the House, it's certainly a powerful coalition. But there's other 0:01:00.920 --> 0:01:05.320 states and members across the country in which, you know, 0:01:05.400 --> 0:01:09.000 over the last seven years they've seen their own taxes 0:01:09.160 --> 0:01:14.680 rise up against that ten thousand dollars cap. So quietly 0:01:14.760 --> 0:01:16.959 there's a few more members than. 0:01:16.840 --> 0:01:18.560 People would realize, but would realize. 0:01:18.720 --> 0:01:22.319 Look, the cap on salt was a pay for for 0:01:22.360 --> 0:01:25.040 the twenty seventeen tax Cuts in Jobs Act. 0:01:25.200 --> 0:01:25.800 That's it. 0:01:25.800 --> 0:01:28.000 It was used as a pay for to pay for 0:01:28.120 --> 0:01:33.240 other provisions within the tax bill. The ten thousand dollars 0:01:33.240 --> 0:01:38.440 cap is woefully insufficient. It's had a negative impact on 0:01:38.560 --> 0:01:42.320 states like New York. Now we can get into how 0:01:42.400 --> 0:01:46.400 New York excessively spends. They've increased their state budget by 0:01:46.440 --> 0:01:49.920 sixty one billion dollars in the last four years, for instance. 0:01:50.240 --> 0:01:51.440 That needs to change. 0:01:52.080 --> 0:01:55.480 But taxpayers should not be penalized by living in a 0:01:55.680 --> 0:01:56.600 high tax state. 0:01:56.760 --> 0:01:58.120 This is double taxation. 0:01:59.080 --> 0:02:01.440 And for those of my colleagues that say this is 0:02:01.520 --> 0:02:05.760 somehow a subsidy, the fact is New York contributes more 0:02:05.760 --> 0:02:09.639 to the federal government than it receives, and more than 0:02:09.760 --> 0:02:14.040 some of these states in which you know my colleagues 0:02:14.080 --> 0:02:18.080 will claim that they don't want their taxpayers subsidizing New York, 0:02:18.200 --> 0:02:20.240 but the reality is it's the other way around. 0:02:20.400 --> 0:02:23.000 Congressman, you certainly don't have a friend though, And someone 0:02:23.160 --> 0:02:26.160 like Lindsey Graham, the center of South Carolina, who said, 0:02:26.160 --> 0:02:29.240 why should I from South Carolina pay for what's going 0:02:29.280 --> 0:02:31.440 on in some of these blue states. And he's pushing 0:02:31.480 --> 0:02:35.640 for this one big sorry for the two bill approach 0:02:35.840 --> 0:02:37.800 because he doesn't want to talk about taxes, he thinks 0:02:37.800 --> 0:02:39.880 it's going to take too long, and he doesn't frankly 0:02:39.919 --> 0:02:42.400 want to sign up for salt. How are you going 0:02:42.440 --> 0:02:44.840 to convince the President this weekend that you should do 0:02:44.919 --> 0:02:46.960 one bill together and make sure salts included. 0:02:48.120 --> 0:02:50.919 Well, Respectfully, South Carolina is one of those states that 0:02:51.840 --> 0:02:56.119 gets more back, certainly percentage wise than New York does. 0:02:56.240 --> 0:02:59.440 So you know, if we want to talk about subsidies, 0:02:59.440 --> 0:03:02.400 we can go after and burst through everybody's subsidies that 0:03:02.440 --> 0:03:06.240 they get. Look with respect to one versus too. The 0:03:06.280 --> 0:03:10.120 President has already made clear he is moving forward on 0:03:10.120 --> 0:03:15.800 one big bill. We need to deal with taxes, the border, 0:03:16.320 --> 0:03:21.760 energy debt, among other issues. And the fact is, given 0:03:21.880 --> 0:03:25.359 our small margin in the House, we're going to need 0:03:25.480 --> 0:03:28.079 everybody's vote and everybody on board. 0:03:28.160 --> 0:03:31.960 Two track bills are going to make that harder. 0:03:32.680 --> 0:03:35.520 So while it may take a little bit more time 0:03:35.640 --> 0:03:40.520 to get one bill negotiated, it is necessary if we're 0:03:40.560 --> 0:03:43.440 going to get all of these issues addressed. And I 0:03:43.480 --> 0:03:45.840 think the President understands SID. I think that's why the 0:03:45.880 --> 0:03:50.800 President made clear last week one bill, and that's how 0:03:50.840 --> 0:03:52.600 we are proceeding forward. 0:03:52.360 --> 0:03:53.040 In the House. 0:03:54.080 --> 0:03:58.520 And look, ultimately, our Senate and House Republican majorities are 0:03:58.520 --> 0:04:01.360 going to have to work together. Nobody's going to get 0:04:01.400 --> 0:04:04.360 everything they want out of this. There's going to have 0:04:04.400 --> 0:04:07.440 to be a good faith negotiation if we have any 0:04:07.520 --> 0:04:10.680 chance of passing a reconciliation bill. 0:04:11.280 --> 0:04:14.080 I was one of those individuals who watched your festivus 0:04:14.160 --> 0:04:17.040 airing of grievances during the Christmas week and you did 0:04:17.040 --> 0:04:20.240 a little bit of a wink at your potential future 0:04:20.360 --> 0:04:23.480 maybe becoming the governor of New York to make sure 0:04:23.520 --> 0:04:26.240 you could potentially go down that path, do you need 0:04:26.320 --> 0:04:28.480 to secure a higher salt tax break. 0:04:30.120 --> 0:04:33.560 Look, regardless of whether or not I run for governor, 0:04:33.720 --> 0:04:37.040 this was a promise of mine and it's a top 0:04:37.120 --> 0:04:39.720 priority for my district. I represent one of the highest 0:04:39.720 --> 0:04:43.560 tax districts in the country, inclusive of Westchester and Rockland 0:04:43.640 --> 0:04:47.479 Counties number one and number two highest property tax counties 0:04:47.520 --> 0:04:51.599 in America. So this is critically important. To lift the 0:04:51.640 --> 0:04:57.920 cap on salt. Ten thousand dollars is woefully insufficient, and 0:04:58.720 --> 0:05:00.839 this is something that I said I would deliver on, 0:05:00.920 --> 0:05:04.680 and we're going to as part of this reconciliation bill. 0:05:05.520 --> 0:05:08.520 Long term for New York, this is critical. We lead 0:05:08.560 --> 0:05:12.120 the nation in out migration. Our tax base is eroding, 0:05:12.279 --> 0:05:16.120 in large part because of the disastrous policies of Cappy 0:05:16.200 --> 0:05:20.200 Hokel and Albany Democrats. One party rule in Albany has 0:05:20.200 --> 0:05:23.960 been an abject disaster, whether you're talking about the affordability 0:05:23.960 --> 0:05:27.680 crisis or public safety. People being burned alive on subways, 0:05:27.760 --> 0:05:31.720 pushed in front of oncoming subway trains. Kappy Hochl now 0:05:31.800 --> 0:05:35.919 scamming New Yorkers out of twenty five hundred dollars a 0:05:36.080 --> 0:05:39.320 year just for the privilege of driving to work, while 0:05:39.320 --> 0:05:44.320 spending billions of dollars of taxpayer money on free housing, clothing, food, education, 0:05:44.839 --> 0:05:48.680 and healthcare for illegal immigrants. New York needs change, there's 0:05:48.720 --> 0:05:51.800 no question about that. But from a federal perspective, we 0:05:51.800 --> 0:05:55.120 should not be penalizing New York taxpayers because of the 0:05:55.200 --> 0:05:58.839 disastrous decisions of Cappy HOCl and Albany Democrats. 0:05:58.920 --> 0:06:01.039 And just to be clear, comes to the salt cap, 0:06:01.120 --> 0:06:03.159 how high are you looking for it to be raised? 0:06:04.200 --> 0:06:06.400 Look, I've introduced legislation. 0:06:07.560 --> 0:06:11.680 You know, my marriage penalty elimination bill reintroduced to raise 0:06:11.720 --> 0:06:14.799 it to one hundred thousand dollars for individuals two hundred 0:06:14.880 --> 0:06:16.600 thousand dollars for married couples. 0:06:16.960 --> 0:06:18.360 This is going to be a negotiation. 0:06:19.360 --> 0:06:21.919 My colleagues and I are looking forward to sitting down 0:06:22.080 --> 0:06:26.479 with the President having a discussion about it, hearing obviously 0:06:26.520 --> 0:06:29.520 what his priorities are as part of the tax bill, 0:06:30.200 --> 0:06:33.279 and working to a consensus. At the end of the day, 0:06:34.200 --> 0:06:38.400 my objective is to provide tax relief to hard working Americans. 0:06:38.760 --> 0:06:42.359 It's incumbent upon everybody to negotiate in good faith because 0:06:42.360 --> 0:06:45.320 here's the reality. If we do not pass a tax 0:06:45.360 --> 0:06:49.719 bill number one, salt comes back unlimited, but it is 0:06:49.760 --> 0:06:53.520 accompanied by the largest tax increase in American history. So 0:06:53.560 --> 0:06:57.599 it is important that we actually negotiate a fair tax 0:06:57.680 --> 0:07:01.040 deal for the American people in August. 0:07:01.080 --> 0:07:02.400 I just want to end on this. You are one 0:07:02.400 --> 0:07:04.520 of these individuals that wrote a letter to the Speaker 0:07:04.680 --> 0:07:08.119 talking about that you didn't want the repeal of energy 0:07:08.200 --> 0:07:10.560 tax credits with the IRA. This is something that president 0:07:10.560 --> 0:07:12.440 like Donald Trump wants. Are you going to be trying 0:07:12.480 --> 0:07:15.400 to assuage him of your view over this weekend in 0:07:15.480 --> 0:07:15.960 mar Lago. 0:07:17.760 --> 0:07:22.360 Look, many provisions of the IRA absolutely need to be repealed. 0:07:22.680 --> 0:07:24.960 What we signed on to a letter is that we 0:07:24.960 --> 0:07:27.880 were not going to just sign off on a wholesale repeal. 0:07:27.920 --> 0:07:30.880 There needed to be a discussion and again a negotiation. 0:07:31.720 --> 0:07:37.560 Companies make decisions based on tax provisions, and they need certainty. 0:07:37.560 --> 0:07:40.800 And there's already been significant investment, including in New York, 0:07:41.560 --> 0:07:45.520 based on some of these energy tax credits, and so 0:07:45.560 --> 0:07:48.400 we want to make sure that any changes are done 0:07:48.760 --> 0:07:53.360 smartly and not just wholesale repeal. So that'll be part 0:07:53.360 --> 0:07:58.640 of the discussion and conversation as we move forward. And again, 0:07:58.760 --> 0:08:01.560 I think the key here is to come up with 0:08:01.600 --> 0:08:07.360 a reconciliation bill that increases domestic production of energy, ensures 0:08:07.400 --> 0:08:12.600 the American people have a good, smart tax bill to 0:08:12.680 --> 0:08:16.800 reduce their taxes, reduce the cost of living here in 0:08:16.840 --> 0:08:20.000 the US, and ultimately secures our border. 0:08:20.160 --> 0:08:21.440 It's a lot of. 0:08:21.480 --> 0:08:26.040 Important issues that have to be included in this reconciliation bill. 0:08:26.440 --> 0:08:30.440 It's going to require negotiation, and it's going to ultimately 0:08:30.680 --> 0:08:33.760 require every Republican supporting the final product. 0:08:33.880 --> 0:08:36.800 A Congressman, as we speak, Bonyold of climbing and We've 0:08:36.840 --> 0:08:39.360 seen quite a significant move since September when the Federal 0:08:39.360 --> 0:08:42.319 Reserve standing its rate cutting effort. We've moved one hundred 0:08:42.400 --> 0:08:44.880 basis points. And I certainly don't expect you to follow 0:08:44.920 --> 0:08:47.280 the ins and outs of fixed income on any given day, 0:08:47.320 --> 0:08:50.079 but I wonder whether you and your colleagues are sensitive 0:08:50.360 --> 0:08:52.160 to some of the pressure that is starting to build 0:08:52.360 --> 0:08:53.600 in the US dept market. 0:08:55.280 --> 0:09:00.000 No question, Look, our tet at thirty six trillion dollars 0:09:00.120 --> 0:09:05.240 total and counting, is a major problem. And this is 0:09:05.280 --> 0:09:08.640 something that everybody in the Republican Conference is in agreement on. 0:09:08.880 --> 0:09:10.760 We have to tackle our debt. 0:09:11.240 --> 0:09:15.800 We have to reduce our deficit spending, we have to 0:09:15.880 --> 0:09:17.600 right size the federal government. 0:09:18.240 --> 0:09:19.960 Spending is out of control. 0:09:20.080 --> 0:09:26.080 Joe Biden's disastrous first two years gave us record inflation 0:09:26.200 --> 0:09:28.560 it spite the cost of living. 0:09:29.040 --> 0:09:31.760 And we have to unwind a lot of this. 0:09:32.240 --> 0:09:34.320 You look at a state like New York, it is 0:09:34.480 --> 0:09:38.319 floundering because of some of the economic pressures. 0:09:38.920 --> 0:09:39.880 And just think about this. 0:09:40.400 --> 0:09:45.240 The MTA has more debt than eighty percent of the 0:09:45.320 --> 0:09:49.320 states in the country. So debt is a major problem. 0:09:49.440 --> 0:09:52.880 It's something that we have to deal with across the board. 0:09:53.760 --> 0:09:59.200 We cannot continue to print and borrow money at the levels. 0:09:58.840 --> 0:09:59.280 That we have. 0:09:59.480 --> 0:10:01.600 Do you think we can and afford to extend CCJA, 0:10:02.040 --> 0:10:04.439 which baseline is something like four to five trillion? Do 0:10:04.480 --> 0:10:06.440 you think we can afford to include an expansion of 0:10:06.480 --> 0:10:09.120 cell tax deductions? And Congressman, I wouldn't push back against 0:10:09.120 --> 0:10:11.559 anything you said about the effort that needs to take 0:10:11.600 --> 0:10:14.319 place elsewear, I'm just wondering how much fiscal space you 0:10:14.400 --> 0:10:16.840 and your colleagues believe we actually have at the moment. 0:10:17.640 --> 0:10:22.240 Look, tax policy is critical to economic growth, but it's 0:10:22.240 --> 0:10:26.320 one part. We need to increase domestic production of energy, 0:10:26.600 --> 0:10:31.120 which will help generate more revenues. Energy policy is also critical, 0:10:31.200 --> 0:10:35.560 not just domestically for cost, but for national security. You 0:10:35.600 --> 0:10:39.199 were talking obviously about the threats to Europe from Russia. 0:10:39.679 --> 0:10:44.240 Europe is still buying gas from Russia. It's idiotic. It 0:10:44.360 --> 0:10:47.560 makes no sense that they're helping fund the very war 0:10:47.640 --> 0:10:51.120 they're trying to stop. So there is a lot that 0:10:51.240 --> 0:10:55.920 has to be done here, including reigning in federal spending. Obviously, 0:10:56.280 --> 0:10:59.000 as we work through the tax cuts, we will look 0:10:59.040 --> 0:11:03.640 to help offset some of the cost through spending reduction. 0:11:03.840 --> 0:11:06.960 So this is going to be a comprehensive approach to 0:11:07.120 --> 0:11:10.240 how we right size the American economy. I do think 0:11:10.240 --> 0:11:12.120 it's possible. It's going to be one of the most 0:11:12.200 --> 0:11:16.720 critical things any of us ever do in our careers 0:11:16.760 --> 0:11:19.560 in government. And so we all have to be committed 0:11:19.600 --> 0:11:21.440 to the final cause here and. 0:11:21.440 --> 0:11:23.920 We're certainly looking forward to continue in the conversation with you, sir, 0:11:24.000 --> 0:11:26.599 in your current capacity and maybe in the future. Is 0:11:26.640 --> 0:11:28.720 the next government of the great State of New York. 0:11:28.840 --> 0:11:31.480 Mike Lauda there, Congressman, thank you, sir, appreciate it.