1 00:00:00,280 --> 00:00:07,240 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,000 --> 00:00:10,799 Speaker 2: Therein lies the challenge that is facing House Republicans right 3 00:00:10,840 --> 00:00:12,880 Speaker 2: now as they try to find a path forward on 4 00:00:12,960 --> 00:00:17,160 Speaker 2: budget reconciliation to achieve the legislative objectives of President Trump, 5 00:00:17,239 --> 00:00:20,560 Speaker 2: which includes steep tax cuts, making permanent his twenty seventeen 6 00:00:20,600 --> 00:00:24,080 Speaker 2: tax cuts, specifically energy and border policy, which they're trying 7 00:00:24,120 --> 00:00:26,479 Speaker 2: in the House to roll all into one bill. And 8 00:00:26,520 --> 00:00:29,360 Speaker 2: we got the budget outline yesterday's right. It seems things 9 00:00:29,360 --> 00:00:31,319 Speaker 2: are changing though as they mark things up, with the 10 00:00:31,440 --> 00:00:34,440 Speaker 2: Budget Chair Jody Errington now saying if they can't reach 11 00:00:34,520 --> 00:00:38,640 Speaker 2: two trillion dollars in tax cuts the maximum allowed or 12 00:00:38,720 --> 00:00:41,239 Speaker 2: two tucks in spending cuts, rather the maximum allowed in 13 00:00:41,360 --> 00:00:44,159 Speaker 2: tax cuts would be four trillion dollars. The problem is 14 00:00:44,640 --> 00:00:47,519 Speaker 2: just renewing the twenty seventeen tax cuts is expected to 15 00:00:47,520 --> 00:00:48,200 Speaker 2: cost a bit more. 16 00:00:48,159 --> 00:00:50,880 Speaker 3: Than that, so the math is difficult here. And that's 17 00:00:50,880 --> 00:00:54,279 Speaker 3: where Congressman Ralph Norman comes in. I'm glad that we 18 00:00:54,320 --> 00:00:56,120 Speaker 3: have the opportunity to bring in a member of the 19 00:00:56,120 --> 00:00:59,920 Speaker 3: aforementioned House Budget Committee representing South Carolina's fifth district with 20 00:01:00,080 --> 00:01:02,120 Speaker 3: his own point of view here, and we're told Congressman 21 00:01:02,160 --> 00:01:04,280 Speaker 3: welcome back to Bloomberg TV and Radio. That you're one 22 00:01:04,319 --> 00:01:08,000 Speaker 3: of two potential knows with the numbers that we're hearing. 23 00:01:08,080 --> 00:01:09,360 Speaker 4: So let's we'll update that. 24 00:01:09,440 --> 00:01:11,800 Speaker 3: Let's say it's at least two trillion in spending cuts, 25 00:01:11,840 --> 00:01:14,919 Speaker 3: four and a half trillion dollar camp on tax cuts, 26 00:01:15,000 --> 00:01:17,360 Speaker 3: a four trillion dollar extension of the debt limit. 27 00:01:17,600 --> 00:01:19,280 Speaker 4: Would you vote yes on a bill like that? 28 00:01:20,720 --> 00:01:24,040 Speaker 1: Well, first of all, what we started out with was 29 00:01:24,400 --> 00:01:28,560 Speaker 1: we could not continue the path of unsustained spending. Spending 30 00:01:28,680 --> 00:01:31,559 Speaker 1: is a problem for inflation. Inflation, it's not income, it's 31 00:01:31,560 --> 00:01:36,160 Speaker 1: spending the base budget. I voted to get out of committee. 32 00:01:36,760 --> 00:01:39,280 Speaker 1: We had the timeline to meet, which is today for 33 00:01:39,360 --> 00:01:42,280 Speaker 1: the markup, which we're doing. To be honest, I'm confident 34 00:01:42,400 --> 00:01:45,399 Speaker 1: that we're going to have the amendments in place that 35 00:01:45,560 --> 00:01:48,480 Speaker 1: will get the job done. And as you mentioned, we've 36 00:01:48,520 --> 00:01:53,000 Speaker 1: got one point five trillion and baseline number with an 37 00:01:53,040 --> 00:01:56,960 Speaker 1: aspiration of two the tax cuts four trillion, four and 38 00:01:57,000 --> 00:02:00,160 Speaker 1: a half, and then with three hundred billion four or 39 00:02:00,880 --> 00:02:05,720 Speaker 1: defense and homeland security, and I think we're going to 40 00:02:05,800 --> 00:02:07,880 Speaker 1: get there. I think supported for us to get our 41 00:02:07,920 --> 00:02:11,280 Speaker 1: own version out. I know the Senate is working on one, 42 00:02:11,400 --> 00:02:15,760 Speaker 1: but you know, all the House is responsible for the 43 00:02:15,800 --> 00:02:18,520 Speaker 1: purse strange. So I'm confident we'll get it out. It's 44 00:02:18,560 --> 00:02:21,680 Speaker 1: going to be a long day, but we expected that 45 00:02:21,720 --> 00:02:24,720 Speaker 1: a lot of amendments, a lot of Democrat amendments, and 46 00:02:24,840 --> 00:02:26,880 Speaker 1: we'll have our own that I'm confident will add to 47 00:02:26,919 --> 00:02:28,440 Speaker 1: the value. 48 00:02:28,760 --> 00:02:31,880 Speaker 2: Well, obviously, Congressman, getting it out of committee is one hurdle, 49 00:02:31,919 --> 00:02:34,240 Speaker 2: but getting a package that can actually pass on the 50 00:02:34,240 --> 00:02:36,960 Speaker 2: House floor with what is assumed to be zero Democratic 51 00:02:37,040 --> 00:02:40,440 Speaker 2: votes is another thing. Entirely with this structure, are you 52 00:02:40,520 --> 00:02:42,760 Speaker 2: confident the requisite votes would be there? 53 00:02:44,160 --> 00:02:45,400 Speaker 4: Here's what I'm confident of. 54 00:02:46,120 --> 00:02:48,960 Speaker 1: When it goes to the floor, there will be a 55 00:02:49,040 --> 00:02:50,320 Speaker 1: total explanation of. 56 00:02:50,280 --> 00:02:53,160 Speaker 4: Every cut every committee comes up with. I think where 57 00:02:53,160 --> 00:02:55,760 Speaker 4: it's coming from. Is it going to be easy? No, 58 00:02:55,880 --> 00:02:56,600 Speaker 4: it's not going to be. 59 00:02:56,760 --> 00:02:59,480 Speaker 1: But every dollar in Congress that's spent has got an 60 00:02:59,480 --> 00:03:01,720 Speaker 1: advocate for it, and they're coming out in full force 61 00:03:02,520 --> 00:03:05,639 Speaker 1: as I speak to you right now, Kayley. But yeah, 62 00:03:05,680 --> 00:03:08,679 Speaker 1: I'm confident, and I'm confident because of this it will 63 00:03:08,720 --> 00:03:12,160 Speaker 1: make sense. Everybody agrees that we can't continue the path. 64 00:03:12,240 --> 00:03:15,840 Speaker 1: But I tell you what's got to happen. President Trump, 65 00:03:15,919 --> 00:03:19,480 Speaker 1: who's got a sixty five sixty nine percent approval rating. 66 00:03:19,520 --> 00:03:20,799 Speaker 4: He's going to have to get involved. 67 00:03:21,000 --> 00:03:23,760 Speaker 1: Anybody that at the end of the day when he 68 00:03:23,800 --> 00:03:26,079 Speaker 1: goes to the floor that doesn't agree with it or 69 00:03:26,200 --> 00:03:29,359 Speaker 1: has issues, I think he will directly get involved, as 70 00:03:29,360 --> 00:03:32,000 Speaker 1: he has, and he's done a brilliant job of doing 71 00:03:32,040 --> 00:03:34,760 Speaker 1: that and explaining why the tax cuts. We've got to 72 00:03:34,760 --> 00:03:37,200 Speaker 1: get this out because it's gonna be a tax it's 73 00:03:37,200 --> 00:03:40,720 Speaker 1: going to be a tax increase for over twenty eight 74 00:03:40,800 --> 00:03:43,720 Speaker 1: to thirty five percent for all Americans. We can't let 75 00:03:43,760 --> 00:03:47,280 Speaker 1: that happen. The prosperity that happened under his reign. We've 76 00:03:47,280 --> 00:03:49,120 Speaker 1: got to continue and I think at the end of 77 00:03:49,160 --> 00:03:50,320 Speaker 1: the day, I think we'll pass it. 78 00:03:51,400 --> 00:03:53,720 Speaker 3: Well, we know, Congressman, that President Trump is not above 79 00:03:53,760 --> 00:03:56,240 Speaker 3: picking up the phone when it's time to weigh in 80 00:03:56,280 --> 00:03:58,640 Speaker 3: on things. As I'm sure we all recall from the 81 00:03:58,640 --> 00:04:00,360 Speaker 3: most recent Speakers vote. 82 00:04:00,400 --> 00:04:02,680 Speaker 4: Are you hungry for the President to weigh in here? 83 00:04:03,960 --> 00:04:08,200 Speaker 1: Absolutely, he's got away in because we can't afford to 84 00:04:08,200 --> 00:04:11,520 Speaker 1: stumble on this. I mean, you know, it's it's interesting 85 00:04:11,600 --> 00:04:14,960 Speaker 1: every politician every four hundred, well five hundred and thirty 86 00:04:14,960 --> 00:04:19,960 Speaker 1: five members of Congress campaign on conservatism cutting the depths 87 00:04:19,960 --> 00:04:22,599 Speaker 1: that we know it's not sustainable. Now when it actually 88 00:04:22,640 --> 00:04:24,640 Speaker 1: comes down to it, that's where he comes into the 89 00:04:24,680 --> 00:04:27,680 Speaker 1: picture and does it put Does it make sense to 90 00:04:27,720 --> 00:04:30,280 Speaker 1: put work requirements on Medicaid? 91 00:04:30,720 --> 00:04:31,440 Speaker 4: I think it does. 92 00:04:31,520 --> 00:04:34,360 Speaker 1: Does it make sense to, you know, to go down 93 00:04:34,400 --> 00:04:37,320 Speaker 1: the line and let block grants, let states handle some 94 00:04:37,400 --> 00:04:39,920 Speaker 1: of that funding. It's not a cut in Medicaid as 95 00:04:39,960 --> 00:04:43,039 Speaker 1: one example. But yeah, I mean, I think he's going 96 00:04:43,120 --> 00:04:45,040 Speaker 1: to have to get involved and he will to pass 97 00:04:45,240 --> 00:04:48,800 Speaker 1: what he considers this is a lynch pin for his 98 00:04:48,880 --> 00:04:52,279 Speaker 1: whole four years in office. Is great to start it. Now, 99 00:04:52,520 --> 00:04:55,039 Speaker 1: look what he's done on the Dove's Commission, and so 100 00:04:56,040 --> 00:05:00,800 Speaker 1: I'm I'm I'm anxious, and I think he's going to 101 00:05:00,839 --> 00:05:02,520 Speaker 1: pass and I'm optimistic. 102 00:05:04,240 --> 00:05:07,479 Speaker 2: Well, and with this structure you already mentioned potential cuts 103 00:05:07,520 --> 00:05:11,039 Speaker 2: to medicate here. But essentially what this structure will mean 104 00:05:11,200 --> 00:05:13,920 Speaker 2: is that if the cost of Trump's tax cuts go higher, 105 00:05:13,920 --> 00:05:16,120 Speaker 2: if we're adding on things like no tax on tips 106 00:05:16,200 --> 00:05:19,440 Speaker 2: or overtime or social Security, lifting the salt cap, perhaps 107 00:05:19,560 --> 00:05:22,359 Speaker 2: more spending cuts have to come into place. So what 108 00:05:22,440 --> 00:05:25,159 Speaker 2: else is going to have to go on the chopping block? 109 00:05:25,480 --> 00:05:28,680 Speaker 2: If Donald Trump the president is to get everything he 110 00:05:28,760 --> 00:05:29,320 Speaker 2: wants here. 111 00:05:30,120 --> 00:05:32,000 Speaker 4: Well, first of all, it's not cuts to Medicaid. We're 112 00:05:32,000 --> 00:05:32,480 Speaker 4: not doing that. 113 00:05:33,240 --> 00:05:36,640 Speaker 1: Is it a reallocation yes. Is it getting people off 114 00:05:36,680 --> 00:05:41,479 Speaker 1: the rows of a healthy Yes. And that's what he 115 00:05:41,520 --> 00:05:45,160 Speaker 1: can sell to anybody who is feeling a lot of pressure, 116 00:05:45,200 --> 00:05:46,240 Speaker 1: which I understand. 117 00:05:47,880 --> 00:05:50,080 Speaker 4: But you've got to consider the growth rate. 118 00:05:50,320 --> 00:05:52,679 Speaker 1: I think we've got a two point five percent growth 119 00:05:53,600 --> 00:05:56,360 Speaker 1: in the economy of GDP. I think that'll happen. That'll 120 00:05:56,400 --> 00:05:58,520 Speaker 1: make some of the difference up. But it's not going 121 00:05:58,560 --> 00:05:59,880 Speaker 1: to be easy, but it never is. 122 00:06:00,680 --> 00:06:01,960 Speaker 4: But I think we'll get there. 123 00:06:02,240 --> 00:06:07,360 Speaker 1: And the alternative of letting the tax cuts his fire 124 00:06:07,400 --> 00:06:10,200 Speaker 1: and give Americans that kind of a tax increase is 125 00:06:11,360 --> 00:06:13,359 Speaker 1: not a pretty picture, and we're not gonna let that happen. 126 00:06:14,640 --> 00:06:17,960 Speaker 3: I'm wondering where you are on the timeline here, Congressman, 127 00:06:18,000 --> 00:06:19,480 Speaker 3: and just how much time there is to work all 128 00:06:19,480 --> 00:06:21,560 Speaker 3: of this out. We've got a funding deadline twenty nine 129 00:06:21,640 --> 00:06:24,560 Speaker 3: days out. Would you support a continuing resolution to keep 130 00:06:24,600 --> 00:06:27,920 Speaker 3: the lights on if negotiations we're moving in the right direction. 131 00:06:29,880 --> 00:06:32,280 Speaker 1: Yeah, And I don't like CRS. I think it needs 132 00:06:32,320 --> 00:06:36,480 Speaker 1: to be a kind of a modified CR. As example 133 00:06:36,520 --> 00:06:38,520 Speaker 1: of the ones that get hit the most of the military. 134 00:06:38,920 --> 00:06:41,920 Speaker 1: I think Pete Hexstath will weigh in on what he needs. 135 00:06:42,240 --> 00:06:44,760 Speaker 1: I think Tom Holman will weigh in with what he needs. 136 00:06:44,839 --> 00:06:48,039 Speaker 1: But yeah, I would vote for a CR depending on 137 00:06:48,080 --> 00:06:50,560 Speaker 1: what the final conditions are as part of it. But 138 00:06:50,640 --> 00:06:54,719 Speaker 1: you've got to allow the continuation of what particularly the 139 00:06:54,720 --> 00:06:58,160 Speaker 1: military is doing. And every contract, every lease extension is 140 00:06:58,200 --> 00:07:01,440 Speaker 1: affected by a CR. In a negative, we will have 141 00:07:01,480 --> 00:07:04,760 Speaker 1: to do some carveouts and they will have to tell us. 142 00:07:04,680 --> 00:07:05,279 Speaker 4: What they need. 143 00:07:05,320 --> 00:07:07,720 Speaker 1: We finally got people in office that they know it. 144 00:07:07,760 --> 00:07:10,760 Speaker 1: Pete Hexteth knows the military, he knows where the money 145 00:07:10,760 --> 00:07:13,600 Speaker 1: ought to go. The same thing with Tom Holman. He's 146 00:07:13,640 --> 00:07:17,240 Speaker 1: got this deportation down, but the agency is at the 147 00:07:17,320 --> 00:07:20,480 Speaker 1: end of the day, the appropriations are going to have 148 00:07:20,480 --> 00:07:20,960 Speaker 1: to come up. 149 00:07:20,920 --> 00:07:21,480 Speaker 4: With the money. 150 00:07:21,680 --> 00:07:25,000 Speaker 1: And that's where Donald Trump comes in to make the case. 151 00:07:25,040 --> 00:07:27,960 Speaker 1: And I think there's no one better they can do it, 152 00:07:28,280 --> 00:07:30,840 Speaker 1: that can present the case than he can. 153 00:07:32,160 --> 00:07:32,240 Speaker 3: Do. 154 00:07:32,400 --> 00:07:36,360 Speaker 2: Democrats come in somewhere, Congressman, on this when we're talking 155 00:07:36,360 --> 00:07:40,240 Speaker 2: about just keeping the government funded beyond March specifically. 156 00:07:41,760 --> 00:07:45,360 Speaker 4: They don't come into the solution. I mean, we're not 157 00:07:45,400 --> 00:07:47,440 Speaker 4: gonna have to deal with them hopefully. I mean. 158 00:07:48,880 --> 00:07:50,880 Speaker 1: Some of the things that we've heard they're going to 159 00:07:50,960 --> 00:07:55,120 Speaker 1: ask for, like the elimination of Elon Musk, like the 160 00:07:55,240 --> 00:07:56,200 Speaker 1: end to deportation. 161 00:07:56,360 --> 00:07:57,160 Speaker 4: It's ludicrous. 162 00:07:57,760 --> 00:08:00,240 Speaker 1: People are excited about what Elon Musk is doing, and 163 00:08:00,680 --> 00:08:03,880 Speaker 1: if you have to deal with them, they're so it's 164 00:08:03,960 --> 00:08:04,400 Speaker 1: just two. 165 00:08:04,280 --> 00:08:05,840 Speaker 4: Different universes with them today. 166 00:08:06,360 --> 00:08:09,000 Speaker 1: And I mean, look at the demonstrations they've done on 167 00:08:09,880 --> 00:08:13,080 Speaker 1: I guess what Elon Musk is doing. He's not getting paid. 168 00:08:13,240 --> 00:08:16,080 Speaker 1: He's an investigator. He's supplying the numbers that we should 169 00:08:16,080 --> 00:08:19,720 Speaker 1: have had years ago. So no, I don't think we'll 170 00:08:19,760 --> 00:08:21,120 Speaker 1: have to deal with them, and I don't think we'll 171 00:08:21,160 --> 00:08:21,800 Speaker 1: need their vote. 172 00:08:22,040 --> 00:08:24,480 Speaker 4: At the end of the day, they're not going to 173 00:08:24,520 --> 00:08:25,080 Speaker 4: vote with us. 174 00:08:25,080 --> 00:08:27,600 Speaker 1: When you watch the hearings and the budget committee, I 175 00:08:27,600 --> 00:08:29,440 Speaker 1: don't think any of them going to vote for this budget. 176 00:08:29,480 --> 00:08:31,200 Speaker 4: And we've got a good budget and I think we'll 177 00:08:31,200 --> 00:08:31,560 Speaker 4: pass it. 178 00:08:32,679 --> 00:08:36,920 Speaker 3: Realizing you support the spirit of Elon Musk's mission here, Congressman, 179 00:08:37,000 --> 00:08:40,200 Speaker 3: as a lawmaker in the House of Representatives, do you 180 00:08:40,240 --> 00:08:43,199 Speaker 3: worry when we talk about exing out entire agencies without 181 00:08:43,200 --> 00:08:44,280 Speaker 3: the approval of Congress. 182 00:08:46,480 --> 00:08:51,000 Speaker 1: Absolutely not let the money flow, which has never been discovered. 183 00:08:51,280 --> 00:08:55,760 Speaker 1: People are asking, maybe why didn't Congress discover these abuses 184 00:08:55,840 --> 00:08:56,640 Speaker 1: of where. 185 00:08:56,400 --> 00:08:59,080 Speaker 4: Our money goes? The reason is we couldn't get to it. 186 00:08:59,160 --> 00:09:02,040 Speaker 1: He's the only one that had the brain power and 187 00:09:02,120 --> 00:09:05,040 Speaker 1: the bandwidth to get to where to follow the checks 188 00:09:05,080 --> 00:09:06,439 Speaker 1: to where they actually ended up. 189 00:09:07,800 --> 00:09:09,920 Speaker 3: Money is one thing, though, but the actual existence of 190 00:09:09,960 --> 00:09:13,200 Speaker 3: the agency just just if they blow them out. You 191 00:09:13,200 --> 00:09:14,800 Speaker 3: don't think Congress should have a saying that. 192 00:09:16,520 --> 00:09:19,000 Speaker 1: I think when yeah, at the end of the day, 193 00:09:19,080 --> 00:09:22,040 Speaker 1: we'll have to vote on it. But through his executive 194 00:09:22,080 --> 00:09:25,520 Speaker 1: powers and through the Constitution, he can cut the funding off, 195 00:09:25,559 --> 00:09:27,880 Speaker 1: which he's doing. And you know, if let's say an 196 00:09:27,920 --> 00:09:32,960 Speaker 1: agency that has some good parts in it, President Trump 197 00:09:33,040 --> 00:09:36,120 Speaker 1: is will recognize those that need to be continued. But 198 00:09:37,480 --> 00:09:40,880 Speaker 1: it's the money is where it all ends up showing 199 00:09:40,920 --> 00:09:45,319 Speaker 1: whether an agency should continue. It shouldn't go overseas. It 200 00:09:45,360 --> 00:09:48,160 Speaker 1: shouldn't go for Sesame Street books for the tune to 201 00:09:48,240 --> 00:09:51,160 Speaker 1: twenty million, It shouldn't go on to sixteen million, to 202 00:09:51,920 --> 00:09:57,120 Speaker 1: Vietnam for inclusion, things like that. We the people are 203 00:09:57,120 --> 00:09:59,280 Speaker 1: going to weigh in on and they already have. But 204 00:09:59,480 --> 00:10:02,679 Speaker 1: some agents will need to be modified, Some agencies will 205 00:10:02,720 --> 00:10:06,319 Speaker 1: need to be scaled down. Department of Education is one 206 00:10:06,360 --> 00:10:09,760 Speaker 1: of them. Social Security is another one. When you find 207 00:10:09,800 --> 00:10:12,400 Speaker 1: out from what I'm hearing, people are getting four and 208 00:10:12,480 --> 00:10:15,760 Speaker 1: five checks. He's investigating all that and let the American 209 00:10:15,840 --> 00:10:20,320 Speaker 1: people decide. It's not their money, it's the facts payer's money. 210 00:10:21,480 --> 00:10:24,120 Speaker 2: All right, Congressman, thanks very much for joining us live 211 00:10:24,160 --> 00:10:27,560 Speaker 2: today from Capitol Hill. That's Republican Congressman Ralph Norman of 212 00:10:27,600 --> 00:10:30,360 Speaker 2: South Carolina. Of course, member of the House Budget Committee. 213 00:10:30,400 --> 00:10:32,319 Speaker 2: Is that markup is still underway.