WEBVTT - Rep. Ralph Norman Talks Budget Plan

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Therein lies the challenge that is facing House Republicans right

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<v Speaker 2>now as they try to find a path forward on

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<v Speaker 2>budget reconciliation to achieve the legislative objectives of President Trump,

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<v Speaker 2>which includes steep tax cuts, making permanent his twenty seventeen

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<v Speaker 2>tax cuts, specifically energy and border policy, which they're trying

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<v Speaker 2>in the House to roll all into one bill. And

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<v Speaker 2>we got the budget outline yesterday's right. It seems things

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<v Speaker 2>are changing though as they mark things up, with the

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<v Speaker 2>Budget Chair Jody Errington now saying if they can't reach

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<v Speaker 2>two trillion dollars in tax cuts the maximum allowed or

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<v Speaker 2>two tucks in spending cuts, rather the maximum allowed in

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<v Speaker 2>tax cuts would be four trillion dollars. The problem is

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<v Speaker 2>just renewing the twenty seventeen tax cuts is expected to

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<v Speaker 2>cost a bit more.

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<v Speaker 3>Than that, so the math is difficult here. And that's

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<v Speaker 3>where Congressman Ralph Norman comes in. I'm glad that we

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<v Speaker 3>have the opportunity to bring in a member of the

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<v Speaker 3>aforementioned House Budget Committee representing South Carolina's fifth district with

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<v Speaker 3>his own point of view here, and we're told Congressman

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<v Speaker 3>welcome back to Bloomberg TV and Radio. That you're one

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<v Speaker 3>of two potential knows with the numbers that we're hearing.

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<v Speaker 4>So let's we'll update that.

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<v Speaker 3>Let's say it's at least two trillion in spending cuts,

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<v Speaker 3>four and a half trillion dollar camp on tax cuts,

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<v Speaker 3>a four trillion dollar extension of the debt limit.

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<v Speaker 4>Would you vote yes on a bill like that?

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<v Speaker 1>Well, first of all, what we started out with was

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<v Speaker 1>we could not continue the path of unsustained spending. Spending

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<v Speaker 1>is a problem for inflation. Inflation, it's not income, it's

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<v Speaker 1>spending the base budget. I voted to get out of committee.

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<v Speaker 1>We had the timeline to meet, which is today for

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<v Speaker 1>the markup, which we're doing. To be honest, I'm confident

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<v Speaker 1>that we're going to have the amendments in place that

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<v Speaker 1>will get the job done. And as you mentioned, we've

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<v Speaker 1>got one point five trillion and baseline number with an

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<v Speaker 1>aspiration of two the tax cuts four trillion, four and

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<v Speaker 1>a half, and then with three hundred billion four or

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<v Speaker 1>defense and homeland security, and I think we're going to

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<v Speaker 1>get there. I think supported for us to get our

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<v Speaker 1>own version out. I know the Senate is working on one,

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<v Speaker 1>but you know, all the House is responsible for the

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<v Speaker 1>purse strange. So I'm confident we'll get it out. It's

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<v Speaker 1>going to be a long day, but we expected that

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<v Speaker 1>a lot of amendments, a lot of Democrat amendments, and

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<v Speaker 1>we'll have our own that I'm confident will add to

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<v Speaker 1>the value.

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<v Speaker 2>Well, obviously, Congressman, getting it out of committee is one hurdle,

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<v Speaker 2>but getting a package that can actually pass on the

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<v Speaker 2>House floor with what is assumed to be zero Democratic

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<v Speaker 2>votes is another thing. Entirely with this structure, are you

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<v Speaker 2>confident the requisite votes would be there?

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<v Speaker 4>Here's what I'm confident of.

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<v Speaker 1>When it goes to the floor, there will be a

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<v Speaker 1>total explanation of.

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<v Speaker 4>Every cut every committee comes up with. I think where

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<v Speaker 4>it's coming from. Is it going to be easy? No,

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<v Speaker 4>it's not going to be.

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<v Speaker 1>But every dollar in Congress that's spent has got an

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<v Speaker 1>advocate for it, and they're coming out in full force

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<v Speaker 1>as I speak to you right now, Kayley. But yeah,

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<v Speaker 1>I'm confident, and I'm confident because of this it will

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<v Speaker 1>make sense. Everybody agrees that we can't continue the path.

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<v Speaker 1>But I tell you what's got to happen. President Trump,

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<v Speaker 1>who's got a sixty five sixty nine percent approval rating.

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<v Speaker 4>He's going to have to get involved.

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<v Speaker 1>Anybody that at the end of the day when he

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<v Speaker 1>goes to the floor that doesn't agree with it or

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<v Speaker 1>has issues, I think he will directly get involved, as

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<v Speaker 1>he has, and he's done a brilliant job of doing

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<v Speaker 1>that and explaining why the tax cuts. We've got to

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<v Speaker 1>get this out because it's gonna be a tax it's

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<v Speaker 1>going to be a tax increase for over twenty eight

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<v Speaker 1>to thirty five percent for all Americans. We can't let

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<v Speaker 1>that happen. The prosperity that happened under his reign. We've

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<v Speaker 1>got to continue and I think at the end of

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<v Speaker 1>the day, I think we'll pass it.

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<v Speaker 3>Well, we know, Congressman, that President Trump is not above

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<v Speaker 3>picking up the phone when it's time to weigh in

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<v Speaker 3>on things. As I'm sure we all recall from the

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<v Speaker 3>most recent Speakers vote.

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<v Speaker 4>Are you hungry for the President to weigh in here?

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<v Speaker 1>Absolutely, he's got away in because we can't afford to

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<v Speaker 1>stumble on this. I mean, you know, it's it's interesting

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<v Speaker 1>every politician every four hundred, well five hundred and thirty

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<v Speaker 1>five members of Congress campaign on conservatism cutting the depths

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<v Speaker 1>that we know it's not sustainable. Now when it actually

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<v Speaker 1>comes down to it, that's where he comes into the

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<v Speaker 1>picture and does it put Does it make sense to

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<v Speaker 1>put work requirements on Medicaid?

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<v Speaker 4>I think it does.

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<v Speaker 1>Does it make sense to, you know, to go down

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<v Speaker 1>the line and let block grants, let states handle some

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<v Speaker 1>of that funding. It's not a cut in Medicaid as

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<v Speaker 1>one example. But yeah, I mean, I think he's going

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<v Speaker 1>to have to get involved and he will to pass

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<v Speaker 1>what he considers this is a lynch pin for his

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<v Speaker 1>whole four years in office. Is great to start it. Now,

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<v Speaker 1>look what he's done on the Dove's Commission, and so

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<v Speaker 1>I'm I'm I'm anxious, and I think he's going to

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<v Speaker 1>pass and I'm optimistic.

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<v Speaker 2>Well, and with this structure you already mentioned potential cuts

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<v Speaker 2>to medicate here. But essentially what this structure will mean

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<v Speaker 2>is that if the cost of Trump's tax cuts go higher,

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<v Speaker 2>if we're adding on things like no tax on tips

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<v Speaker 2>or overtime or social Security, lifting the salt cap, perhaps

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<v Speaker 2>more spending cuts have to come into place. So what

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<v Speaker 2>else is going to have to go on the chopping block?

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<v Speaker 2>If Donald Trump the president is to get everything he

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<v Speaker 2>wants here.

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<v Speaker 4>Well, first of all, it's not cuts to Medicaid. We're

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<v Speaker 4>not doing that.

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<v Speaker 1>Is it a reallocation yes. Is it getting people off

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<v Speaker 1>the rows of a healthy Yes. And that's what he

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<v Speaker 1>can sell to anybody who is feeling a lot of pressure,

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<v Speaker 1>which I understand.

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<v Speaker 4>But you've got to consider the growth rate.

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<v Speaker 1>I think we've got a two point five percent growth

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<v Speaker 1>in the economy of GDP. I think that'll happen. That'll

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<v Speaker 1>make some of the difference up. But it's not going

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<v Speaker 1>to be easy, but it never is.

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<v Speaker 4>But I think we'll get there.

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<v Speaker 1>And the alternative of letting the tax cuts his fire

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<v Speaker 1>and give Americans that kind of a tax increase is

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<v Speaker 1>not a pretty picture, and we're not gonna let that happen.

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<v Speaker 3>I'm wondering where you are on the timeline here, Congressman,

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<v Speaker 3>and just how much time there is to work all

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<v Speaker 3>of this out. We've got a funding deadline twenty nine

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<v Speaker 3>days out. Would you support a continuing resolution to keep

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<v Speaker 3>the lights on if negotiations we're moving in the right direction.

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<v Speaker 1>Yeah, And I don't like CRS. I think it needs

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<v Speaker 1>to be a kind of a modified CR. As example

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<v Speaker 1>of the ones that get hit the most of the military.

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<v Speaker 1>I think Pete Hexstath will weigh in on what he needs.

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<v Speaker 1>I think Tom Holman will weigh in with what he needs.

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<v Speaker 1>But yeah, I would vote for a CR depending on

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<v Speaker 1>what the final conditions are as part of it. But

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<v Speaker 1>you've got to allow the continuation of what particularly the

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<v Speaker 1>military is doing. And every contract, every lease extension is

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<v Speaker 1>affected by a CR. In a negative, we will have

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<v Speaker 1>to do some carveouts and they will have to tell us.

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<v Speaker 4>What they need.

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<v Speaker 1>We finally got people in office that they know it.

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<v Speaker 1>Pete Hexteth knows the military, he knows where the money

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<v Speaker 1>ought to go. The same thing with Tom Holman. He's

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<v Speaker 1>got this deportation down, but the agency is at the

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<v Speaker 1>end of the day, the appropriations are going to have

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<v Speaker 1>to come up.

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<v Speaker 4>With the money.

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<v Speaker 1>And that's where Donald Trump comes in to make the case.

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<v Speaker 1>And I think there's no one better they can do it,

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<v Speaker 1>that can present the case than he can.

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<v Speaker 3>Do.

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<v Speaker 2>Democrats come in somewhere, Congressman, on this when we're talking

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<v Speaker 2>about just keeping the government funded beyond March specifically.

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<v Speaker 4>They don't come into the solution. I mean, we're not

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<v Speaker 4>gonna have to deal with them hopefully. I mean.

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<v Speaker 1>Some of the things that we've heard they're going to

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<v Speaker 1>ask for, like the elimination of Elon Musk, like the

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<v Speaker 1>end to deportation.

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<v Speaker 4>It's ludicrous.

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<v Speaker 1>People are excited about what Elon Musk is doing, and

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<v Speaker 1>if you have to deal with them, they're so it's

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<v Speaker 1>just two.

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<v Speaker 4>Different universes with them today.

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<v Speaker 1>And I mean, look at the demonstrations they've done on

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<v Speaker 1>I guess what Elon Musk is doing. He's not getting paid.

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<v Speaker 1>He's an investigator. He's supplying the numbers that we should

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<v Speaker 1>have had years ago. So no, I don't think we'll

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<v Speaker 1>have to deal with them, and I don't think we'll

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<v Speaker 1>need their vote.

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<v Speaker 4>At the end of the day, they're not going to

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<v Speaker 4>vote with us.

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<v Speaker 1>When you watch the hearings and the budget committee, I

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<v Speaker 1>don't think any of them going to vote for this budget.

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<v Speaker 4>And we've got a good budget and I think we'll

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<v Speaker 4>pass it.

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<v Speaker 3>Realizing you support the spirit of Elon Musk's mission here, Congressman,

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<v Speaker 3>as a lawmaker in the House of Representatives, do you

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<v Speaker 3>worry when we talk about exing out entire agencies without

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<v Speaker 3>the approval of Congress.

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<v Speaker 1>Absolutely not let the money flow, which has never been discovered.

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<v Speaker 1>People are asking, maybe why didn't Congress discover these abuses

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<v Speaker 1>of where.

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<v Speaker 4>Our money goes? The reason is we couldn't get to it.

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<v Speaker 1>He's the only one that had the brain power and

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<v Speaker 1>the bandwidth to get to where to follow the checks

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<v Speaker 1>to where they actually ended up.

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<v Speaker 3>Money is one thing, though, but the actual existence of

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<v Speaker 3>the agency just just if they blow them out. You

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<v Speaker 3>don't think Congress should have a saying that.

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<v Speaker 1>I think when yeah, at the end of the day,

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<v Speaker 1>we'll have to vote on it. But through his executive

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<v Speaker 1>powers and through the Constitution, he can cut the funding off,

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<v Speaker 1>which he's doing. And you know, if let's say an

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<v Speaker 1>agency that has some good parts in it, President Trump

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<v Speaker 1>is will recognize those that need to be continued. But

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<v Speaker 1>it's the money is where it all ends up showing

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<v Speaker 1>whether an agency should continue. It shouldn't go overseas. It

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<v Speaker 1>shouldn't go for Sesame Street books for the tune to

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<v Speaker 1>twenty million, It shouldn't go on to sixteen million, to

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<v Speaker 1>Vietnam for inclusion, things like that. We the people are

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<v Speaker 1>going to weigh in on and they already have. But

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<v Speaker 1>some agents will need to be modified, Some agencies will

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<v Speaker 1>need to be scaled down. Department of Education is one

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<v Speaker 1>of them. Social Security is another one. When you find

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<v Speaker 1>out from what I'm hearing, people are getting four and

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<v Speaker 1>five checks. He's investigating all that and let the American

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<v Speaker 1>people decide. It's not their money, it's the facts payer's money.

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<v Speaker 2>All right, Congressman, thanks very much for joining us live

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<v Speaker 2>today from Capitol Hill. That's Republican Congressman Ralph Norman of

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<v Speaker 2>South Carolina. Of course, member of the House Budget Committee.

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<v Speaker 2>Is that markup is still underway.