1 00:00:02,520 --> 00:00:10,119 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,440 Speaker 1: noon and five pm Eastern on Applecarclay and Android Auto 4 00:00:17,520 --> 00:00:20,680 Speaker 1: with the Bloomberg Business App. Listen on demand wherever you 5 00:00:20,720 --> 00:00:24,480 Speaker 1: get your podcasts, or watch us live on YouTube. 6 00:00:25,200 --> 00:00:27,560 Speaker 2: Thanks for being here on the Tuesday edition of Balance 7 00:00:27,600 --> 00:00:29,520 Speaker 2: of Power. Here we go again, high noon on the 8 00:00:29,520 --> 00:00:32,200 Speaker 2: East Coast with a lot to report and a lot 9 00:00:32,200 --> 00:00:34,400 Speaker 2: to talk about. It's been a doozy of a day already, 10 00:00:34,440 --> 00:00:37,080 Speaker 2: and it's not even half over here in the nation's capital, 11 00:00:37,080 --> 00:00:39,760 Speaker 2: as we bring you live coverage on Bloomberg Radio, Satellite 12 00:00:39,840 --> 00:00:42,760 Speaker 2: radio Channel one twenty one, and of course on YouTube. 13 00:00:42,800 --> 00:00:44,560 Speaker 2: Meet us now because we're about to show you something 14 00:00:44,600 --> 00:00:46,479 Speaker 2: really cool. Tyler Kendall's got a little gift for you, 15 00:00:46,560 --> 00:00:49,080 Speaker 2: going to bring you behind the scenes on Capitol Hill. 16 00:00:49,120 --> 00:00:53,040 Speaker 2: Search Bloomberg Business News Live and you'll add our cameras 17 00:00:53,440 --> 00:00:57,440 Speaker 2: to our microphones. Great to be as well on Bloomberg Originals, 18 00:00:57,480 --> 00:01:00,960 Speaker 2: as we cover every platform the planet here on the 19 00:01:00,960 --> 00:01:03,160 Speaker 2: fastest show in politics, because we've got a lot to 20 00:01:03,200 --> 00:01:06,119 Speaker 2: bring to you. It's not every day the parents show 21 00:01:06,200 --> 00:01:09,559 Speaker 2: up at the party, but it happened a short time ago. 22 00:01:10,000 --> 00:01:12,920 Speaker 2: First thing this morning, Donald Trump as promised on Capitol 23 00:01:13,000 --> 00:01:16,520 Speaker 2: Hill to do some cajoling, you might say, twist some arms, 24 00:01:16,600 --> 00:01:19,480 Speaker 2: whatever you want to call it, to get the bill passed, 25 00:01:19,560 --> 00:01:22,000 Speaker 2: knowing that there are grand standards, as he likes to 26 00:01:22,000 --> 00:01:26,319 Speaker 2: call them, actual lawmakers, members of his own Republican party 27 00:01:26,319 --> 00:01:28,880 Speaker 2: who don't love what they're seeing in this legislation, and 28 00:01:28,920 --> 00:01:32,080 Speaker 2: this is the signature achievement, or so they want to claim. 29 00:01:32,600 --> 00:01:38,039 Speaker 2: Extending the Trump tax cuts, of course, cutting spending on 30 00:01:38,040 --> 00:01:40,319 Speaker 2: the federal level and doing so much. When it comes 31 00:01:40,400 --> 00:01:42,760 Speaker 2: to no taxes on tips, over time and the rest, 32 00:01:43,600 --> 00:01:45,520 Speaker 2: then there's salt. We're going to get to that in 33 00:01:45,560 --> 00:01:47,800 Speaker 2: a moment. That's where Tyler comes in. But let's listen 34 00:01:47,800 --> 00:01:52,360 Speaker 2: to President Trump. By the way, four I think four gaggles, 35 00:01:53,000 --> 00:01:56,720 Speaker 2: four gaggles in two hours, Producer James counting for us. 36 00:01:56,720 --> 00:01:57,880 Speaker 2: Here's the boss on the way in. 37 00:01:58,960 --> 00:02:01,520 Speaker 3: Well, that's not a question that we have a tremendously 38 00:02:01,640 --> 00:02:03,520 Speaker 3: unified party. I don't think we have ever had a 39 00:02:03,560 --> 00:02:05,360 Speaker 3: party like this. There are some people that want a 40 00:02:05,360 --> 00:02:08,120 Speaker 3: couple of things that maybe I don't like, or that 41 00:02:08,760 --> 00:02:10,720 Speaker 3: they're not going to get. I think we're a very 42 00:02:10,800 --> 00:02:15,120 Speaker 3: unified party. The Senate's doing great, John Fields doing fantastically. 43 00:02:15,120 --> 00:02:18,480 Speaker 3: He's a great guy. And we're going to have a bill, 44 00:02:18,560 --> 00:02:20,400 Speaker 3: the one big beautiful bill. I think it's going to 45 00:02:20,440 --> 00:02:22,720 Speaker 3: be the biggest bill ever passed, and we got to 46 00:02:22,720 --> 00:02:23,200 Speaker 3: get it done. 47 00:02:24,720 --> 00:02:25,040 Speaker 4: Well. 48 00:02:25,200 --> 00:02:28,520 Speaker 2: It may not have been one big beautiful meeting when 49 00:02:28,520 --> 00:02:31,160 Speaker 2: they went behind closed doors. The headline on the terminal 50 00:02:31,200 --> 00:02:35,720 Speaker 2: Trump pushes Salt Republicans to abandon further cap pikes. That's 51 00:02:35,800 --> 00:02:39,120 Speaker 2: not what people like Mike Lawler want to hear today. 52 00:02:39,280 --> 00:02:41,239 Speaker 2: If you're a Republican from New York, you've got a 53 00:02:41,280 --> 00:02:43,800 Speaker 2: lot on the line. And that's why, as I promised 54 00:02:43,800 --> 00:02:45,920 Speaker 2: to you, Bloomberg's Tyler Kendall is going to bring us 55 00:02:45,919 --> 00:02:48,080 Speaker 2: behind the scenes now, not into an area of the 56 00:02:48,120 --> 00:02:51,200 Speaker 2: Capitol that you see a lot. She's actually outside Congressman 57 00:02:51,280 --> 00:02:54,920 Speaker 2: Lawler's office in the Cannon House Office building. Having spoken 58 00:02:54,960 --> 00:02:58,080 Speaker 2: with him a short time ago. Tyler is pretty clear, says, 59 00:02:58,120 --> 00:03:00,000 Speaker 2: as it stands right now, he doesn't support the bill. 60 00:03:00,000 --> 00:03:04,440 Speaker 5: Well, yeah, hey, Joe. At this moment, he says that 61 00:03:04,520 --> 00:03:07,480 Speaker 5: he will not budge on his vote now going into 62 00:03:07,560 --> 00:03:10,000 Speaker 5: this closed door meeting with President Trump. We had an 63 00:03:10,000 --> 00:03:13,200 Speaker 5: idea that it was going to be pretty contentious, considering 64 00:03:13,280 --> 00:03:16,919 Speaker 5: that President Trump told US reporters that he doesn't really 65 00:03:16,960 --> 00:03:19,480 Speaker 5: think that there needs to be much changes when it 66 00:03:19,520 --> 00:03:22,040 Speaker 5: comes to salt, making it a political issue, saying that 67 00:03:22,080 --> 00:03:25,760 Speaker 5: it will benefit tax policies in these blue states. But 68 00:03:25,800 --> 00:03:27,840 Speaker 5: I had the chance to catch up with Congressman Mike 69 00:03:27,919 --> 00:03:30,480 Speaker 5: Lawler here. I'm taking you here really to the center 70 00:03:30,520 --> 00:03:32,960 Speaker 5: of the action, which for our radio listeners happens to 71 00:03:32,960 --> 00:03:35,360 Speaker 5: be an empty hallway at the moment, But really this 72 00:03:35,520 --> 00:03:37,520 Speaker 5: is where we are going to start to see a 73 00:03:37,560 --> 00:03:41,200 Speaker 5: lot of the negotiations happen because House Speaker Mike Johnson 74 00:03:41,280 --> 00:03:43,960 Speaker 5: needs to get these Republicans from high tax states like 75 00:03:44,040 --> 00:03:47,760 Speaker 5: New York, New Jersey, and California on board in order 76 00:03:47,840 --> 00:03:51,160 Speaker 5: to pass this reconciliation package. Now, Mike Lawler told me 77 00:03:51,200 --> 00:03:53,360 Speaker 5: that he made his points to President Trump pretty clear 78 00:03:53,480 --> 00:03:56,040 Speaker 5: that lifting the cap to thirty thousand dollars from the 79 00:03:56,040 --> 00:03:59,400 Speaker 5: current ten thousand dollars limit is not going to be enough. 80 00:03:59,440 --> 00:04:02,000 Speaker 5: He told me that, and ultimately he respects the President's 81 00:04:02,040 --> 00:04:04,440 Speaker 5: perspective on this and that he wants to get a 82 00:04:04,440 --> 00:04:07,000 Speaker 5: bill passed so that the tax cuts do not expire, 83 00:04:07,040 --> 00:04:09,400 Speaker 5: because that's what's going to happen at the end of 84 00:04:09,440 --> 00:04:11,760 Speaker 5: the day if they do not pass new tax cut legislation. 85 00:04:11,920 --> 00:04:13,640 Speaker 5: But that they need to come to an agreement. 86 00:04:13,680 --> 00:04:13,920 Speaker 6: He said. 87 00:04:13,960 --> 00:04:16,359 Speaker 5: It's going to be up to House leadership whether or 88 00:04:16,400 --> 00:04:18,360 Speaker 5: not they can get this deal done by House Speaker 89 00:04:18,400 --> 00:04:21,679 Speaker 5: Mike Johnson's stated goal of Memorial Day, but that House 90 00:04:21,760 --> 00:04:24,320 Speaker 5: leadership is going to have to put a pen to paper, 91 00:04:24,400 --> 00:04:26,839 Speaker 5: as he said, in order to get a better deal. 92 00:04:26,920 --> 00:04:30,760 Speaker 2: Joe, Wow, amazing Bloomberg's Tyler Kendall with the very latest. 93 00:04:31,040 --> 00:04:33,320 Speaker 2: Great get Tyler, thank you for bringing that to our 94 00:04:33,400 --> 00:04:36,760 Speaker 2: viewers and listeners. It's amazing see that Tyler Kendall shows up. 95 00:04:37,040 --> 00:04:41,279 Speaker 2: Everybody goes inside their office and closes the door. That's 96 00:04:41,279 --> 00:04:43,880 Speaker 2: something Mike Dorning knows a little bit about having covered 97 00:04:43,880 --> 00:04:45,560 Speaker 2: Capitol Hill for a long time. And we want to 98 00:04:45,560 --> 00:04:49,440 Speaker 2: add the voice of our Capital influenced deputy team leader, 99 00:04:49,680 --> 00:04:51,760 Speaker 2: you know him as Mike Dorning. It's great to see you. 100 00:04:52,279 --> 00:04:53,680 Speaker 2: Mike are the throes of all of this, and I 101 00:04:53,760 --> 00:04:56,119 Speaker 2: know you're real busy in the newsroom right now. Donald 102 00:04:56,160 --> 00:04:58,800 Speaker 2: Crottes typing, I Yeah, we couldn't even get you on 103 00:04:58,839 --> 00:05:00,840 Speaker 2: the phone. That was a meeting of love, he said. 104 00:05:01,160 --> 00:05:04,880 Speaker 2: There was no shouting, despite reports to the contrary. I'm 105 00:05:04,920 --> 00:05:07,640 Speaker 2: not losing patience, he said. Anyone who told you that 106 00:05:07,680 --> 00:05:09,960 Speaker 2: as a liar. When you have to say I'm not 107 00:05:10,080 --> 00:05:11,360 Speaker 2: losing patients. 108 00:05:11,200 --> 00:05:12,480 Speaker 4: You are losing patients. 109 00:05:12,680 --> 00:05:13,400 Speaker 2: Do you think of this? 110 00:05:14,240 --> 00:05:17,240 Speaker 4: So it's it's a tense period. There are people who 111 00:05:17,360 --> 00:05:22,719 Speaker 4: have important bottom line considerations. This is tough to work out. 112 00:05:23,320 --> 00:05:28,360 Speaker 4: But what's there's not much doubt that most, basically all 113 00:05:28,400 --> 00:05:32,520 Speaker 4: the Republicans are very supportive of the core provisions. They 114 00:05:32,520 --> 00:05:36,320 Speaker 4: want the big tax cuts, they want the investment oriented, 115 00:05:36,360 --> 00:05:41,120 Speaker 4: business oriented tax cuts. So we know this is going 116 00:05:41,200 --> 00:05:46,160 Speaker 4: to ninety nine percent certain get done. The drama here 117 00:05:46,400 --> 00:05:50,480 Speaker 4: is there's all these fights happening right now, and it 118 00:05:50,520 --> 00:05:54,680 Speaker 4: could delay it. And if you care about the salt deduction, 119 00:05:54,960 --> 00:05:58,760 Speaker 4: if you care about Medicaid, if you care about how 120 00:05:58,800 --> 00:06:02,640 Speaker 4: big the deficit is, if you care about these green 121 00:06:02,760 --> 00:06:07,479 Speaker 4: energy tax breaks, these big stakes are going to be 122 00:06:07,560 --> 00:06:11,440 Speaker 4: decided by this fighting. And especially if you care about 123 00:06:11,440 --> 00:06:15,560 Speaker 4: the salt deduction. This is the last shot to raise 124 00:06:15,600 --> 00:06:19,160 Speaker 4: it because none of those Senate Republicans care one wit 125 00:06:19,279 --> 00:06:23,760 Speaker 4: about up unlike in the House, where you have Republican 126 00:06:23,839 --> 00:06:27,599 Speaker 4: representatives from high tax states like New York, New Jersey, 127 00:06:27,720 --> 00:06:32,520 Speaker 4: California in the Senate, there are no Senate Republicans who 128 00:06:32,640 --> 00:06:33,760 Speaker 4: care about those states. 129 00:06:33,800 --> 00:06:35,720 Speaker 2: Well, that means a lot. So it's a lonely world. 130 00:06:35,800 --> 00:06:37,880 Speaker 2: If you're Mike Wawler right now or Nicholas. 131 00:06:37,520 --> 00:06:40,120 Speaker 4: This is your last standard? Is it for them? 132 00:06:40,160 --> 00:06:42,360 Speaker 2: So what really happened in that meeting based on the 133 00:06:42,440 --> 00:06:43,800 Speaker 2: leaks and our reporting. 134 00:06:44,000 --> 00:06:47,560 Speaker 4: So even though it doesn't really matter to you and 135 00:06:47,600 --> 00:06:51,560 Speaker 4: me whether this thing gets done until December thirty, first, 136 00:06:52,040 --> 00:06:54,960 Speaker 4: if you're a Republican, you want to get it done 137 00:06:55,080 --> 00:06:59,960 Speaker 4: now before you know, maybe Trump turns unpopular, if there's inflation, 138 00:07:00,160 --> 00:07:03,919 Speaker 4: and maybe some Republican lawmakers keel over and die. You 139 00:07:03,960 --> 00:07:06,320 Speaker 4: don't know what's going to happen in the future. When 140 00:07:06,360 --> 00:07:09,600 Speaker 4: you can get it done, you want it done. And 141 00:07:09,640 --> 00:07:14,080 Speaker 4: Trump and Mike Johnson have this artificial deadline they've created 142 00:07:14,520 --> 00:07:16,640 Speaker 4: Memorial Day to get it through the House. And that 143 00:07:16,800 --> 00:07:19,640 Speaker 4: is the way to get stuff done in Congress is 144 00:07:19,680 --> 00:07:22,280 Speaker 4: to have a deadline, and even if it's a made 145 00:07:22,360 --> 00:07:25,680 Speaker 4: up one, make it feel like that's the moment because 146 00:07:25,720 --> 00:07:29,360 Speaker 4: no one's going to give their best offer until you're 147 00:07:29,480 --> 00:07:33,440 Speaker 4: right up on the line. And these guys all have 148 00:07:33,640 --> 00:07:36,680 Speaker 4: strong opinions about what they want, but they also want 149 00:07:36,680 --> 00:07:38,320 Speaker 4: to everyone wants to get a deal. 150 00:07:38,560 --> 00:07:40,640 Speaker 2: Yeah, of course, Well if they stay on track here, 151 00:07:40,720 --> 00:07:42,560 Speaker 2: let's say it gets the Rules Committee at one in 152 00:07:42,560 --> 00:07:45,080 Speaker 2: the morning or whatever this plan is, and then a 153 00:07:45,120 --> 00:07:47,880 Speaker 2: floor vote. It appears that lawmakers will not have a 154 00:07:47,880 --> 00:07:51,000 Speaker 2: CBO score to base their vote on. I don't know 155 00:07:51,000 --> 00:07:53,320 Speaker 2: how unusual that is for the Congressional Budget Office to 156 00:07:53,320 --> 00:07:55,760 Speaker 2: not have this ready, But does that actually strengthen the 157 00:07:55,760 --> 00:07:58,520 Speaker 2: hand of Republican leadership to not actually put a number 158 00:07:58,560 --> 00:07:59,760 Speaker 2: on how expensive this is? 159 00:08:00,080 --> 00:08:04,120 Speaker 4: Kind of does because you've got you know, this is 160 00:08:04,160 --> 00:08:09,200 Speaker 4: going to be like hugely big deficit addition, like trillions 161 00:08:09,200 --> 00:08:12,560 Speaker 4: of dollars added to the deficit. The US debt just 162 00:08:12,600 --> 00:08:16,320 Speaker 4: got downgraded by the last major rating agency. You even 163 00:08:16,400 --> 00:08:19,480 Speaker 4: had this great story on the Bloomberg Terminal moment about 164 00:08:19,520 --> 00:08:22,880 Speaker 4: Hong Kong pension funds suddenly might not even be able 165 00:08:22,880 --> 00:08:25,680 Speaker 4: to invest in US government debt anymore because it doesn't 166 00:08:25,760 --> 00:08:30,680 Speaker 4: meet legal credit you know, minimums. So you've got all 167 00:08:30,720 --> 00:08:34,000 Speaker 4: these things going on that might make the debt seem 168 00:08:34,080 --> 00:08:36,840 Speaker 4: like a bigger deal. But if you can get it 169 00:08:36,880 --> 00:08:39,320 Speaker 4: through without like all that it helps. 170 00:08:39,640 --> 00:08:42,040 Speaker 2: Wow, amazing. I haven't even asked you about the debt 171 00:08:42,040 --> 00:08:44,559 Speaker 2: limit yet. At some point an XT date is going 172 00:08:44,600 --> 00:08:47,959 Speaker 2: to drop. Does that light the fires to complete this process? 173 00:08:48,000 --> 00:08:50,319 Speaker 2: Because you know they'll be outrage in a remaining minute 174 00:08:50,320 --> 00:08:52,960 Speaker 2: here by House members when they see what comes back 175 00:08:52,960 --> 00:08:53,839 Speaker 2: from the Upper Chamber. 176 00:08:53,960 --> 00:08:56,839 Speaker 4: Yeah, there will be outrage, and that's why they want 177 00:08:56,880 --> 00:08:59,400 Speaker 4: to keep the debt limit paired to this. There's no 178 00:08:59,559 --> 00:09:02,360 Speaker 4: actual reason why they have to. They can under the 179 00:09:02,440 --> 00:09:06,720 Speaker 4: reconciliation legislation, pass a debt limit in August and wait 180 00:09:06,760 --> 00:09:08,960 Speaker 4: to do the tax stuff in October like they did 181 00:09:09,080 --> 00:09:13,280 Speaker 4: last time around, or even like Christmas Eve. But by 182 00:09:13,640 --> 00:09:16,880 Speaker 4: keeping that debt limit attached to it, then you have 183 00:09:17,000 --> 00:09:21,160 Speaker 4: this default on the debt that can create this sense 184 00:09:21,200 --> 00:09:23,480 Speaker 4: of crisis that you have to get the whole thing 185 00:09:23,559 --> 00:09:26,880 Speaker 4: done now, and that creates kind of a deadline for 186 00:09:26,960 --> 00:09:31,080 Speaker 4: August vacation. And the members like going on vacation in August. 187 00:09:31,240 --> 00:09:32,719 Speaker 7: We do as well, don't I do it? 188 00:09:32,800 --> 00:09:35,720 Speaker 2: Could they get that done for us? It would be amazing. Mike, 189 00:09:35,760 --> 00:09:38,600 Speaker 2: thank you so much, dropping everything in the newsroom for us. 190 00:09:38,679 --> 00:09:42,320 Speaker 2: That's the very latest from Washington. Courtesy Mike Dorning on 191 00:09:42,400 --> 00:09:45,160 Speaker 2: our capital influenced team in Bloomberg's Tyler Kendall Live from 192 00:09:45,200 --> 00:09:46,760 Speaker 2: Capitol Hill. We'll have a lot more ahead. 193 00:09:48,920 --> 00:09:52,400 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 194 00:09:52,480 --> 00:09:55,520 Speaker 1: us live weekdays at noon and five pm Eastern on 195 00:09:55,640 --> 00:09:58,840 Speaker 1: Apple Cockley and Android Auto with the Bloomberg Business App. 196 00:09:58,920 --> 00:10:01,920 Speaker 1: You can also listen live on Amazon Alexa from our 197 00:10:01,960 --> 00:10:07,120 Speaker 1: flagship New York station, Just Say Alexa played Bloomberg eleven thirty. 198 00:10:07,960 --> 00:10:10,760 Speaker 8: Busy day indeed here in Washington, at least for President Trump, 199 00:10:10,800 --> 00:10:13,040 Speaker 8: who's now of course back at the White House, but 200 00:10:13,080 --> 00:10:15,640 Speaker 8: earlier spent a good chunk of his morning on Capitol 201 00:10:15,679 --> 00:10:19,000 Speaker 8: Hill pleading with Republicans to pass his One Big, Beautiful Bill, 202 00:10:19,440 --> 00:10:22,560 Speaker 8: even though emerging from that meeting there remain Republican holdouts 203 00:10:22,559 --> 00:10:25,840 Speaker 8: from both the conservative and moderate rings the Salt Caucus 204 00:10:25,880 --> 00:10:28,400 Speaker 8: as well. But President Trump's message emerging from the meeting 205 00:10:28,480 --> 00:10:29,680 Speaker 8: was they're unified. 206 00:10:30,840 --> 00:10:32,560 Speaker 3: Well, it's not a question of Paul that we have 207 00:10:32,559 --> 00:10:35,319 Speaker 3: a tremendously unified party. I don't think we've ever had 208 00:10:35,320 --> 00:10:37,120 Speaker 3: a party like this. There are some people that want 209 00:10:37,160 --> 00:10:39,800 Speaker 3: a couple of things that maybe I don't like or 210 00:10:39,920 --> 00:10:42,320 Speaker 3: that they're not going to get I think we're a 211 00:10:42,440 --> 00:10:47,000 Speaker 3: very unified party. The Senate's doing great, John Fields doing fantastically. 212 00:10:47,000 --> 00:10:50,360 Speaker 3: He's a great guy. And we're going to have a bill, 213 00:10:50,440 --> 00:10:52,240 Speaker 3: the one big, beautiful bill. I think it's going to 214 00:10:52,320 --> 00:10:54,559 Speaker 3: be the biggest bill ever passed. And we got to 215 00:10:54,600 --> 00:10:55,040 Speaker 3: get it done. 216 00:10:56,520 --> 00:10:58,360 Speaker 2: I got to get it done, he said, the President, 217 00:10:58,440 --> 00:11:01,319 Speaker 2: saying it was a meeting of love. When he emerged 218 00:11:01,800 --> 00:11:05,680 Speaker 2: following his conversation with the Republican conference, they went behind 219 00:11:05,679 --> 00:11:08,640 Speaker 2: closed doors for a couple of hours. The President was 220 00:11:08,720 --> 00:11:11,960 Speaker 2: on Capitol Hill, and there was reporting that things got 221 00:11:11,960 --> 00:11:14,000 Speaker 2: a bit chippy, and that would be normal for any 222 00:11:14,000 --> 00:11:17,200 Speaker 2: family meeting. Of course, this is the family meeting that 223 00:11:17,240 --> 00:11:20,040 Speaker 2: the President called here he said, I'm not losing patients. 224 00:11:20,080 --> 00:11:22,720 Speaker 2: We're ahead of schedule. Anyone who told you that is 225 00:11:22,720 --> 00:11:25,640 Speaker 2: a liar. Knowing as Kaylee mentioned earlier, that there are 226 00:11:25,679 --> 00:11:29,160 Speaker 2: as salt Republicans as they've become known, there are still 227 00:11:29,400 --> 00:11:31,880 Speaker 2: no votes on this bill. Mike Lawler is one of 228 00:11:31,920 --> 00:11:34,760 Speaker 2: them from New York, the Republican we spoke with earlier, saying, 229 00:11:34,760 --> 00:11:36,760 Speaker 2: as it stands right now, I do not support the bill. 230 00:11:37,640 --> 00:11:39,960 Speaker 2: Nick Lolota, I'm fired up right now. I'm here to 231 00:11:40,000 --> 00:11:43,280 Speaker 2: fight for my people. Let's get into this with Brian Style. 232 00:11:43,360 --> 00:11:46,120 Speaker 2: The Congressman, Republican from Wisconsin, is with us now from 233 00:11:46,120 --> 00:11:49,640 Speaker 2: Capitol Hill. Having witnessed a lot of these conversations today, Congressman, 234 00:11:49,679 --> 00:11:52,680 Speaker 2: it's great to have you. The timeline is tight. Speaker 235 00:11:52,760 --> 00:11:55,080 Speaker 2: wants a floor vote this week. How do you bring 236 00:11:55,120 --> 00:11:58,720 Speaker 2: all these disparate parties together to agree on one big, 237 00:11:58,760 --> 00:11:59,960 Speaker 2: beautiful bill. 238 00:12:00,720 --> 00:12:03,480 Speaker 9: Often in the Republican Conference and the House of Representatives 239 00:12:03,559 --> 00:12:07,160 Speaker 9: is underestimated, Yet we continue to over deliver. This is 240 00:12:07,160 --> 00:12:09,640 Speaker 9: the home stretch of the negotiations, and no one is 241 00:12:09,679 --> 00:12:11,760 Speaker 9: going to walk away with one hundred percent of what 242 00:12:11,840 --> 00:12:13,640 Speaker 9: they want in the bill. I think we have an 243 00:12:13,640 --> 00:12:16,480 Speaker 9: opportunity to go further. Some of my colleagues on the 244 00:12:16,480 --> 00:12:19,000 Speaker 9: more moderate side don't want to go that far. 245 00:12:19,200 --> 00:12:21,240 Speaker 10: When the President came and spoke. 246 00:12:20,920 --> 00:12:23,880 Speaker 9: About was making sure that we're unified because we have 247 00:12:23,920 --> 00:12:27,360 Speaker 9: to deliver on the President's agenda, securing the border, protecting 248 00:12:27,440 --> 00:12:30,040 Speaker 9: the twenty seventeen tax cuts, and making sure that we're 249 00:12:30,040 --> 00:12:32,920 Speaker 9: prioritizing American families over illegal immigrants. 250 00:12:33,000 --> 00:12:34,360 Speaker 10: We have the opportunity to do that. 251 00:12:34,440 --> 00:12:36,280 Speaker 9: I think we'll remain unified, and I think we'll pass 252 00:12:36,360 --> 00:12:37,880 Speaker 9: this bill and then not to just in future. 253 00:12:39,080 --> 00:12:43,119 Speaker 8: Well, what faction congressman is most responsible for the delivery 254 00:12:43,280 --> 00:12:45,600 Speaker 8: being not able to be achieved? 255 00:12:45,760 --> 00:12:46,040 Speaker 10: Yet? 256 00:12:46,160 --> 00:12:48,320 Speaker 8: Is it the Salt Caucus or is it the conservatives 257 00:12:48,360 --> 00:12:50,960 Speaker 8: who want to see even more changes to Medicaid despite 258 00:12:50,960 --> 00:12:53,400 Speaker 8: President Trump suggesting he doesn't want to see it touched 259 00:12:53,400 --> 00:12:54,439 Speaker 8: In most ways. 260 00:12:54,960 --> 00:12:57,880 Speaker 9: I'd say is a little bit of everything. Anytime you're 261 00:12:57,920 --> 00:13:01,160 Speaker 9: in a heated negotiation, in particular with over two hundred 262 00:13:01,160 --> 00:13:03,680 Speaker 9: and twenty members trying to get to an agreement where 263 00:13:03,679 --> 00:13:06,880 Speaker 9: we can only lose two individuals, it's going to be 264 00:13:07,040 --> 00:13:10,160 Speaker 9: a push to the end. It is a big, big, 265 00:13:10,240 --> 00:13:13,080 Speaker 9: beautiful family, if you will. But I am convinced at 266 00:13:13,080 --> 00:13:16,360 Speaker 9: the end of the day, the bill itself unquestionably moves 267 00:13:16,400 --> 00:13:19,320 Speaker 9: the country in the right direction. As drafted. It gives 268 00:13:19,320 --> 00:13:22,240 Speaker 9: a win to tho assault members. As drafted, it gives 269 00:13:22,240 --> 00:13:25,280 Speaker 9: a win to conservatives like myself to see spending coming 270 00:13:25,679 --> 00:13:28,040 Speaker 9: under control. And so while no one's going to walk 271 00:13:28,040 --> 00:13:29,760 Speaker 9: away with one hundred percent of what they want, the 272 00:13:29,840 --> 00:13:32,720 Speaker 9: President spoke about making sure that we don't let perfection 273 00:13:32,880 --> 00:13:34,760 Speaker 9: be the enemy of the good, and we take an 274 00:13:34,800 --> 00:13:37,240 Speaker 9: opportunity to take a big step in moving this country 275 00:13:37,240 --> 00:13:37,920 Speaker 9: in the right direction. 276 00:13:39,080 --> 00:13:42,240 Speaker 2: Were voices raised in that meeting. Congressman was there shouting, 277 00:13:42,240 --> 00:13:43,880 Speaker 2: as some had reported. 278 00:13:45,120 --> 00:13:47,160 Speaker 9: Now, I think it was actually a pretty civil conversation, 279 00:13:47,320 --> 00:13:50,840 Speaker 9: people putting forward their policy ideas and suggestions, and the 280 00:13:50,840 --> 00:13:53,439 Speaker 9: President making sure there was clear that we are our 281 00:13:53,520 --> 00:13:57,040 Speaker 9: strongest in our strongest position to get this country back 282 00:13:57,080 --> 00:13:59,599 Speaker 9: on track when we're united. And I think the overwhelming 283 00:13:59,640 --> 00:14:02,520 Speaker 9: majority the members walked out understanding that message. And we 284 00:14:02,679 --> 00:14:05,960 Speaker 9: are united because we have a huge opportunity in front 285 00:14:06,000 --> 00:14:08,360 Speaker 9: of us to move this agenda forward. And I think 286 00:14:08,400 --> 00:14:10,400 Speaker 9: at the end of the day, we're going to see 287 00:14:10,400 --> 00:14:14,960 Speaker 9: Republicans come together. Often in the broader media ecosystem, Republicans 288 00:14:14,960 --> 00:14:17,440 Speaker 9: in the House conference are underestimated, yet we over deliver, 289 00:14:17,640 --> 00:14:18,800 Speaker 9: and I think you're going to see us do that 290 00:14:18,840 --> 00:14:19,360 Speaker 9: once again. 291 00:14:20,800 --> 00:14:23,040 Speaker 8: Well, Congressman, you said something a moment ago about being 292 00:14:23,080 --> 00:14:26,040 Speaker 8: a conservative who wants to see spending brought under control, 293 00:14:26,080 --> 00:14:28,120 Speaker 8: and if you look at the analysis from Moodies, they 294 00:14:28,120 --> 00:14:30,720 Speaker 8: do not believe the fiscal policy proposals currently on the 295 00:14:30,720 --> 00:14:33,480 Speaker 8: table what's being discussed by you and your colleagues would 296 00:14:33,840 --> 00:14:38,320 Speaker 8: bring spending adequately under controller or address the deficit and 297 00:14:38,360 --> 00:14:41,360 Speaker 8: the interest costs of the United States in a material way, 298 00:14:41,400 --> 00:14:44,520 Speaker 8: hence the downgrade of the US's credit rating. I ask 299 00:14:44,600 --> 00:14:47,080 Speaker 8: you this knowing you said on the Financial Services Committee, 300 00:14:47,080 --> 00:14:48,280 Speaker 8: do you think Moody's has it wrong? 301 00:14:49,400 --> 00:14:51,080 Speaker 9: Well, I think what we're seeing is this bill is 302 00:14:51,120 --> 00:14:52,760 Speaker 9: a step in the right direction, but I like to 303 00:14:52,800 --> 00:14:56,360 Speaker 9: go further. Absolutely, we have a serious and significant long 304 00:14:56,440 --> 00:14:59,800 Speaker 9: term structural deficit, in particular brought upon by four reckless 305 00:14:59,840 --> 00:15:03,160 Speaker 9: year suspending under the Biden administration. That said, this is 306 00:15:03,160 --> 00:15:05,400 Speaker 9: a step in the right direction. And so as President 307 00:15:05,440 --> 00:15:07,000 Speaker 9: rag would say, if you can take half a loaf, 308 00:15:07,040 --> 00:15:09,360 Speaker 9: take half a loaf. I think that's what it is 309 00:15:09,440 --> 00:15:11,680 Speaker 9: in front of us. An opportunity to secure and lock 310 00:15:11,720 --> 00:15:15,360 Speaker 9: in the Trump tax reforms that will really unleash economic growth, 311 00:15:15,480 --> 00:15:18,400 Speaker 9: and an opportunity to continue to invest to secure the 312 00:15:18,480 --> 00:15:21,640 Speaker 9: border and making sure that we're prioritizing American families over 313 00:15:21,640 --> 00:15:24,040 Speaker 9: a legal immigrants. All of these are good steps in 314 00:15:24,080 --> 00:15:27,280 Speaker 9: the right direction. But as we look big picture, there 315 00:15:27,400 --> 00:15:29,680 Speaker 9: is going to have to be more work done, and 316 00:15:29,760 --> 00:15:31,920 Speaker 9: I think that you're going to continue to see Republicans 317 00:15:31,920 --> 00:15:34,640 Speaker 9: in Congress, along with the President continuing to work to 318 00:15:34,680 --> 00:15:37,280 Speaker 9: make further actions as we work to get spending further 319 00:15:37,360 --> 00:15:37,960 Speaker 9: under control. 320 00:15:39,000 --> 00:15:40,640 Speaker 2: You know, at the beginning of the year, congressmen, we 321 00:15:40,640 --> 00:15:42,680 Speaker 2: were talking every day all day it seemed like about 322 00:15:42,720 --> 00:15:45,920 Speaker 2: the DOGE Elon Musk, budget cuts and the promise to 323 00:15:46,080 --> 00:15:49,520 Speaker 2: eliminate some two trillion dollars in waste, fraud and abuse, 324 00:15:49,640 --> 00:15:52,840 Speaker 2: or at least bad spending. Now that Elon Musk has 325 00:15:52,920 --> 00:15:55,000 Speaker 2: kind of left the building, he's winding down his role, 326 00:15:55,040 --> 00:15:59,080 Speaker 2: I realized the DOGE will remain in operation here. It 327 00:15:59,120 --> 00:16:04,000 Speaker 2: does seem like lawmakers have rested control over the spending story. 328 00:16:04,040 --> 00:16:07,200 Speaker 2: Do you feel like Congress has stepped up to get 329 00:16:07,240 --> 00:16:13,120 Speaker 2: its arms back around spending policy in Washington without interference 330 00:16:13,240 --> 00:16:14,880 Speaker 2: from the DOGE. 331 00:16:15,160 --> 00:16:17,400 Speaker 9: I think it's actually an opportunity for all of us 332 00:16:17,440 --> 00:16:20,480 Speaker 9: to work together, to work with President Trump's cabinet secretaries 333 00:16:20,920 --> 00:16:23,640 Speaker 9: as well as members of Congress who control the purse strings, 334 00:16:23,800 --> 00:16:26,920 Speaker 9: to make sure that we are good stewards of taxpayer dollars. 335 00:16:26,920 --> 00:16:28,920 Speaker 9: I think a lot of things were identified where we 336 00:16:28,960 --> 00:16:32,080 Speaker 9: can make dramatic improvements and the spending. 337 00:16:31,680 --> 00:16:32,800 Speaker 10: Here in Washington, d C. 338 00:16:33,000 --> 00:16:36,360 Speaker 9: The appropriations process overseas about twenty five percent of total 339 00:16:36,400 --> 00:16:39,080 Speaker 9: federal government spending. About half of that is in defense, 340 00:16:39,160 --> 00:16:41,440 Speaker 9: So of the remaining about twelve and a half percent 341 00:16:41,520 --> 00:16:44,840 Speaker 9: of total federal spending, we have a huge opportunity to 342 00:16:44,960 --> 00:16:47,640 Speaker 9: really go in and remove waste, fraud abuse as we 343 00:16:47,680 --> 00:16:49,840 Speaker 9: look at the broader spending picture of the other seventy 344 00:16:49,840 --> 00:16:52,560 Speaker 9: five percent, in particular, as we look at medicaid. I 345 00:16:52,560 --> 00:16:55,120 Speaker 9: think we make some really good reforms in this legislation 346 00:16:55,400 --> 00:16:57,440 Speaker 9: to address the waste, fraud and abuse. So I think 347 00:16:57,480 --> 00:17:00,280 Speaker 9: we have an opportunity to continue building on the things 348 00:17:00,280 --> 00:17:03,560 Speaker 9: that were identified by Elon Musk and then work together 349 00:17:03,600 --> 00:17:06,240 Speaker 9: with the President's Cabinet, secretaries, lawmakers here in the House, 350 00:17:06,320 --> 00:17:08,240 Speaker 9: and we can make some real progress as relays to 351 00:17:08,240 --> 00:17:09,240 Speaker 9: federal government spending. 352 00:17:10,840 --> 00:17:13,159 Speaker 8: Congressman, given your role as chair of the Subcommittee on 353 00:17:13,200 --> 00:17:16,480 Speaker 8: Digital Assets within Financial Services, I do want to ask 354 00:17:16,520 --> 00:17:19,320 Speaker 8: you about the development out of the US Senate last night, 355 00:17:19,400 --> 00:17:22,960 Speaker 8: sixteen Democrats joining with a majority of Republicans to pass 356 00:17:23,160 --> 00:17:26,600 Speaker 8: a procedural step forward on the Genius Act of course, 357 00:17:26,680 --> 00:17:30,600 Speaker 8: legislation that would regulate stable coins. While this was by 358 00:17:30,680 --> 00:17:34,000 Speaker 8: partisan win, arguably especially for the crypto community, there were 359 00:17:34,040 --> 00:17:37,439 Speaker 8: some alterations that were required to get all of that 360 00:17:37,880 --> 00:17:40,399 Speaker 8: Democratic buy in, and knowing that this still has to 361 00:17:40,480 --> 00:17:43,160 Speaker 8: pass on the full Senate floor vote, how easy will 362 00:17:43,200 --> 00:17:45,920 Speaker 8: it be with those changes to reconcile this with your 363 00:17:45,960 --> 00:17:48,040 Speaker 8: own mirror effort in the House, the Stable Act. 364 00:17:49,040 --> 00:17:51,439 Speaker 9: I think it's exciting that the Senate is moving forward 365 00:17:51,640 --> 00:17:54,400 Speaker 9: on this bill. Center Haggard and I have been in conversations. 366 00:17:54,440 --> 00:17:57,439 Speaker 9: I look forward to tracking the amendment process on the 367 00:17:57,440 --> 00:18:00,240 Speaker 9: Senate floor that is going to be ongoing. We have 368 00:18:00,280 --> 00:18:03,760 Speaker 9: a huge opportunity here to lock in legislation as it 369 00:18:03,800 --> 00:18:05,200 Speaker 9: relates to stable coins. 370 00:18:05,240 --> 00:18:06,400 Speaker 10: I think it'll do two key things. 371 00:18:06,440 --> 00:18:09,159 Speaker 9: It'll protect consumers and it'll make sure that we maintain 372 00:18:09,240 --> 00:18:11,560 Speaker 9: dollar dominance across the globe, and so. 373 00:18:11,560 --> 00:18:13,000 Speaker 10: I think we're united in that goal. 374 00:18:13,080 --> 00:18:15,040 Speaker 9: The amendment process is going to be something that we'll 375 00:18:15,040 --> 00:18:17,720 Speaker 9: be watching here from the House side. My bill, the 376 00:18:17,760 --> 00:18:21,080 Speaker 9: Stable Act, moved through committee also with Democratic support. I 377 00:18:21,119 --> 00:18:22,919 Speaker 9: think we'll be in a position to move that forward 378 00:18:22,960 --> 00:18:25,240 Speaker 9: on the floor in the near future. This is a 379 00:18:25,359 --> 00:18:29,000 Speaker 9: huge opportunity for a big win in the digital blockchain space, 380 00:18:29,359 --> 00:18:30,760 Speaker 9: and I think we're going to be able to get 381 00:18:30,760 --> 00:18:31,719 Speaker 9: this across the line. 382 00:18:32,560 --> 00:18:35,200 Speaker 2: Will you try to merge those two bills? Congressman and 383 00:18:35,240 --> 00:18:37,480 Speaker 2: if all of this works when it comes to stable coin, 384 00:18:37,640 --> 00:18:41,320 Speaker 2: does that help to unlock legislation for something broader like 385 00:18:41,359 --> 00:18:44,520 Speaker 2: Fit twenty one, a broader crypto bill in Congress. 386 00:18:45,280 --> 00:18:48,120 Speaker 9: The draft legislation on market structure, which was Fit twenty 387 00:18:48,160 --> 00:18:51,280 Speaker 9: one last Congress, was just introduced. Hopefully we'll be having 388 00:18:51,320 --> 00:18:53,040 Speaker 9: a hearing on the near future on that in the 389 00:18:53,040 --> 00:18:54,840 Speaker 9: House Financial Services Committee. 390 00:18:54,920 --> 00:18:57,200 Speaker 10: It's really both bills that are ultimately. 391 00:18:56,760 --> 00:19:00,160 Speaker 9: Needed to truly unlock the golden age of digital assets 392 00:19:00,200 --> 00:19:02,280 Speaker 9: here in the United States. You need both stable coin 393 00:19:02,600 --> 00:19:05,280 Speaker 9: and market structure. I think we have the opportunity to 394 00:19:05,400 --> 00:19:07,679 Speaker 9: do that. We're going to be advancing quickly here on 395 00:19:07,760 --> 00:19:10,240 Speaker 9: stable coin. I think the House version my bill, the 396 00:19:10,240 --> 00:19:13,760 Speaker 9: Stable Act, complements well with the Genius Act in the Senate. 397 00:19:13,840 --> 00:19:15,359 Speaker 9: I think at the end of the day, we'll be 398 00:19:15,400 --> 00:19:18,760 Speaker 9: able to get one unified piece of legislation as we 399 00:19:18,880 --> 00:19:22,760 Speaker 9: work to also deliver on the market structure legislation that's 400 00:19:22,800 --> 00:19:24,800 Speaker 9: so essential. When both get done, I think we will 401 00:19:24,840 --> 00:19:27,680 Speaker 9: really unlock the digital asset golden age here in the 402 00:19:27,760 --> 00:19:28,359 Speaker 9: United States. 403 00:19:29,760 --> 00:19:32,679 Speaker 8: And Congressman finally on both market structure and stable coins. 404 00:19:32,680 --> 00:19:35,720 Speaker 8: How complicated is this effort? By questions around conflicts of 405 00:19:35,760 --> 00:19:37,840 Speaker 8: interest in the President of the United States and his 406 00:19:37,920 --> 00:19:40,560 Speaker 8: family's affiliation with a number of crypto endeavors. 407 00:19:41,680 --> 00:19:43,520 Speaker 9: I think we have a big opportunity to actually put 408 00:19:43,520 --> 00:19:46,720 Speaker 9: forward legislation regulating the space. To my friends that have 409 00:19:46,880 --> 00:19:50,480 Speaker 9: concerns regarding this being unregulated, they should come to the 410 00:19:50,520 --> 00:19:53,920 Speaker 9: table and join us in putting forward the regulatory framework 411 00:19:53,920 --> 00:19:56,240 Speaker 9: that we're working on. All the more reason to make 412 00:19:56,280 --> 00:19:59,840 Speaker 9: sure that we're putting forward legislation on market structure, to 413 00:20:00,040 --> 00:20:03,240 Speaker 9: make sure our regulators are in a position to address 414 00:20:03,560 --> 00:20:07,160 Speaker 9: any inappropriate actions. And so I actually think what we 415 00:20:07,240 --> 00:20:10,679 Speaker 9: see is a need for legislation in this space. The 416 00:20:10,720 --> 00:20:13,760 Speaker 9: framework that we have put forward on stable coin garnered 417 00:20:13,800 --> 00:20:17,280 Speaker 9: a large number of Democrats in the House as well 418 00:20:17,359 --> 00:20:19,200 Speaker 9: as in the Senate, and I think the Market Structure 419 00:20:19,240 --> 00:20:22,600 Speaker 9: Bill is that text is formally introduced in the near future, 420 00:20:23,040 --> 00:20:25,879 Speaker 9: you'll also see a large number of Democrats coming to 421 00:20:25,920 --> 00:20:28,919 Speaker 9: the table recognizing that we have a big opportunity to 422 00:20:29,000 --> 00:20:31,800 Speaker 9: legislate in this space to really unleash a lot of 423 00:20:31,840 --> 00:20:34,880 Speaker 9: capital innovation development here in the United States. 424 00:20:36,400 --> 00:20:38,720 Speaker 8: All right, Congressman, we appreciate you joining us on balance 425 00:20:38,760 --> 00:20:41,760 Speaker 8: of power. As always, Republican Congressman Brian Style of Wisconsin, 426 00:20:41,800 --> 00:20:44,520 Speaker 8: of course, chair of the Digital Asset Subcommittee in House 427 00:20:44,600 --> 00:20:47,600 Speaker 8: Financial Services here on Bloomberg TV and Radio, and the 428 00:20:47,600 --> 00:20:49,960 Speaker 8: congressman also making the point multiple times that he thinks 429 00:20:49,960 --> 00:20:54,000 Speaker 8: Republicans on Capitol Hill are often underestimated and over deliver. 430 00:20:54,119 --> 00:20:57,040 Speaker 8: But given what we're hearing out of Congress today, I 431 00:20:57,080 --> 00:21:00,320 Speaker 8: do wonder how high the prospects for over delivery this 432 00:21:00,400 --> 00:21:02,679 Speaker 8: time around with this reconciliation Billa. And it's on that 433 00:21:02,720 --> 00:21:05,360 Speaker 8: note we turn now to our political panel. Bloomberg Politics 434 00:21:05,359 --> 00:21:07,919 Speaker 8: contributors Rick Davis and Jeanie Shanzino are with us Rick 435 00:21:07,920 --> 00:21:10,639 Speaker 8: of course, Stone Court Capital partner and Republican strategist, Genie 436 00:21:10,680 --> 00:21:13,320 Speaker 8: democratic analyst and senior Democracy fellow at the Center for 437 00:21:13,359 --> 00:21:16,760 Speaker 8: the Study of the Presidency and Congress. Rick, when the 438 00:21:16,760 --> 00:21:19,520 Speaker 8: President of the United States goes to meet with lawmakers 439 00:21:19,520 --> 00:21:21,480 Speaker 8: in person to plead with them for how much he 440 00:21:21,520 --> 00:21:24,240 Speaker 8: wants this bill pass and you still have multiple members 441 00:21:24,280 --> 00:21:26,160 Speaker 8: more than you can afford to lose on the House 442 00:21:26,600 --> 00:21:29,439 Speaker 8: floor vote coming out and saying there still knows on 443 00:21:29,520 --> 00:21:32,720 Speaker 8: this legislation, does that promise over delivery to you? 444 00:21:34,440 --> 00:21:35,280 Speaker 10: It's hard to say. 445 00:21:36,040 --> 00:21:40,280 Speaker 11: It's certainly a chink in the armor, and so I'm 446 00:21:40,280 --> 00:21:42,520 Speaker 11: a little surprised actually the President used the form of 447 00:21:42,600 --> 00:21:45,479 Speaker 11: going too the Hill. That's a pretty expansive effort for 448 00:21:45,520 --> 00:21:48,760 Speaker 11: the president to do. Typically pick up the phone, make 449 00:21:48,800 --> 00:21:51,879 Speaker 11: some phone calls, twist some arms, or have some of 450 00:21:51,920 --> 00:21:54,440 Speaker 11: the recalcultrant folks come over to the White House and 451 00:21:54,800 --> 00:21:56,639 Speaker 11: put them in the Oval Office. It's awful hard to 452 00:21:56,640 --> 00:21:58,119 Speaker 11: say no to a President of the United States in 453 00:21:58,119 --> 00:22:00,600 Speaker 11: the Oval Office. And maybe these are tactics bill years 454 00:22:00,680 --> 00:22:03,160 Speaker 11: later on, but they're starting to run out of time, 455 00:22:03,200 --> 00:22:05,400 Speaker 11: as you've pointed out throughout the program, and if they're 456 00:22:05,400 --> 00:22:09,600 Speaker 11: going to get this done before Memorial break. So I 457 00:22:09,680 --> 00:22:12,600 Speaker 11: have seen reporting in just the last few minutes that 458 00:22:13,359 --> 00:22:15,399 Speaker 11: the Speaker is going to start pulled sweating some of 459 00:22:15,440 --> 00:22:18,439 Speaker 11: the Salt Caucus in his office. I guess maybe he 460 00:22:18,480 --> 00:22:20,320 Speaker 11: gets the first crack at it, but it wouldn't surprise 461 00:22:20,400 --> 00:22:22,240 Speaker 11: me they all wind up in the Oval Office for 462 00:22:22,280 --> 00:22:25,760 Speaker 11: a seance with the President. If they continue to say 463 00:22:25,880 --> 00:22:28,800 Speaker 11: no to this bill, well they're. 464 00:22:28,600 --> 00:22:31,040 Speaker 2: Going to be sitting down, indeed with the Speaker of 465 00:22:31,040 --> 00:22:33,439 Speaker 2: the House in less than an hour. Here, Mike Lawler 466 00:22:33,480 --> 00:22:35,959 Speaker 2: among those who are pretty upset, members of the New 467 00:22:36,000 --> 00:22:39,720 Speaker 2: York delegation, Genie, where you are could be the difference 468 00:22:39,840 --> 00:22:44,080 Speaker 2: makers here. President had a pretty direct message for them, 469 00:22:44,400 --> 00:22:46,439 Speaker 2: Mike Lawler saying earlier, as it stands right now, I 470 00:22:46,440 --> 00:22:48,919 Speaker 2: do not support the bill, Nick Lolota. I'm fired up. 471 00:22:48,920 --> 00:22:51,320 Speaker 2: I'm here to fight for my people. Does this bill 472 00:22:51,440 --> 00:22:52,160 Speaker 2: die in New York? 473 00:22:53,720 --> 00:22:56,520 Speaker 7: You know, I wouldn't say that yet, you know, I 474 00:22:56,560 --> 00:22:59,840 Speaker 7: think there's also the political considerations for all of these folks. 475 00:23:00,040 --> 00:23:02,080 Speaker 7: You know, just as an example of Lawler wants to 476 00:23:02,160 --> 00:23:04,720 Speaker 7: run for governor, which he seems to he's going to 477 00:23:04,800 --> 00:23:06,639 Speaker 7: have a tough time doing that in a state like 478 00:23:06,680 --> 00:23:09,200 Speaker 7: New York unless he can show he has pushed back 479 00:23:09,280 --> 00:23:13,440 Speaker 7: on the president. So there's that. They really do believe 480 00:23:13,600 --> 00:23:15,760 Speaker 7: that the cap should be lifted, and they have made 481 00:23:15,760 --> 00:23:19,040 Speaker 7: that very very clear. The lift is already there to 482 00:23:19,119 --> 00:23:22,360 Speaker 7: the thirty thousand. They want it higher. They may get there, 483 00:23:22,400 --> 00:23:25,000 Speaker 7: but I don't think this necessarily ends in New York. 484 00:23:25,119 --> 00:23:25,280 Speaker 10: You know. 485 00:23:25,800 --> 00:23:28,240 Speaker 7: The one thing we've seen over and over again is 486 00:23:28,280 --> 00:23:31,760 Speaker 7: that moderates, usually on the Republican side, in the end 487 00:23:32,119 --> 00:23:34,840 Speaker 7: will give in, and we may see that. I don't 488 00:23:34,880 --> 00:23:37,679 Speaker 7: know if that will happen, but provided they're at thirty. 489 00:23:37,760 --> 00:23:40,560 Speaker 7: Maybe they get to forty, that may be enough for them. 490 00:23:40,640 --> 00:23:43,320 Speaker 7: And I do agree with Rick. I think the President 491 00:23:43,440 --> 00:23:45,840 Speaker 7: may be calling them to the White House. You know, 492 00:23:45,920 --> 00:23:48,359 Speaker 7: the interesting thing here is Donald Trump has been all 493 00:23:48,400 --> 00:23:52,439 Speaker 7: over the salt issue, from being the initial signer of 494 00:23:52,480 --> 00:23:55,159 Speaker 7: the bill that created it, to moving to Florida to 495 00:23:55,240 --> 00:23:57,679 Speaker 7: avoid it, to coming back to Long Island saying it 496 00:23:57,720 --> 00:23:59,399 Speaker 7: needed to be lifted, and now to blame it on 497 00:23:59,440 --> 00:24:02,520 Speaker 7: the blue state governors. So he also has some ownership 498 00:24:02,560 --> 00:24:04,480 Speaker 7: on this thing, and I think they will get together 499 00:24:04,520 --> 00:24:05,600 Speaker 7: and try to resolve that. 500 00:24:07,240 --> 00:24:09,800 Speaker 8: Well, it's not just salt that the President was weighing 501 00:24:09,800 --> 00:24:12,480 Speaker 8: in on Rick. He also, according to our reporting, made 502 00:24:12,480 --> 00:24:14,720 Speaker 8: it clearer that he doesn't want to see Medicaid touched 503 00:24:14,760 --> 00:24:17,359 Speaker 8: beyond waste, fraud, and abuse. And yet there's still conservatives 504 00:24:17,400 --> 00:24:20,480 Speaker 8: who are suggesting that we need to rethink the federal 505 00:24:20,760 --> 00:24:24,679 Speaker 8: sharing of medicaid payments. Here is there a chance that 506 00:24:24,720 --> 00:24:27,840 Speaker 8: Republicans actually defy the president and do more on entitlements 507 00:24:27,840 --> 00:24:30,400 Speaker 8: than the President himself wants to see for political reasons. 508 00:24:31,520 --> 00:24:34,080 Speaker 11: Well, the reason there's a pinch there, Kaylee, is because 509 00:24:34,160 --> 00:24:36,160 Speaker 11: there are a lot of Republicans and the freedom caucus 510 00:24:36,200 --> 00:24:38,240 Speaker 11: who want to see bigger cuts, and so where are 511 00:24:38,240 --> 00:24:40,080 Speaker 11: you going to get the bigger cuts? Probably got to 512 00:24:40,119 --> 00:24:42,159 Speaker 11: go to the Medicare to get them. And if you 513 00:24:42,320 --> 00:24:45,960 Speaker 11: then start taking you know, an as to for instance, 514 00:24:46,840 --> 00:24:50,760 Speaker 11: the corporate tax piece of this that was expanded under Obamacare, 515 00:24:51,640 --> 00:24:54,800 Speaker 11: that's a target rich environment. You know. I think it's 516 00:24:54,840 --> 00:24:58,600 Speaker 11: priced at about six hundred billion dollars and I can 517 00:24:58,680 --> 00:25:01,399 Speaker 11: see them going after that. I think the message the 518 00:25:01,440 --> 00:25:05,360 Speaker 11: President sent was, you know, don't cut too deep. It's 519 00:25:05,400 --> 00:25:08,240 Speaker 11: interesting he didn't. At least the reporting so far has 520 00:25:08,320 --> 00:25:11,200 Speaker 11: not been very very clear is what message he gave 521 00:25:11,520 --> 00:25:14,240 Speaker 11: to the deficit hawks. You know, we know he pushed 522 00:25:14,280 --> 00:25:17,080 Speaker 11: back on Medicare. We know he pushed back on salt, 523 00:25:17,800 --> 00:25:20,040 Speaker 11: But did he push back on anybody saying, hey, the deaf, 524 00:25:20,160 --> 00:25:24,440 Speaker 11: it's too hi And so these are guys who are 525 00:25:24,480 --> 00:25:28,120 Speaker 11: not going to go away easily Chi broy and company. 526 00:25:28,600 --> 00:25:31,520 Speaker 11: And so it'll be interesting to see how they factor in, 527 00:25:31,600 --> 00:25:35,359 Speaker 11: because if they get what they want, they'll be deeper cuts, 528 00:25:35,400 --> 00:25:37,880 Speaker 11: and those cuts will likely come out of that Medicare program, 529 00:25:37,920 --> 00:25:40,159 Speaker 11: and then the President's going to be upset. 530 00:25:43,400 --> 00:25:47,439 Speaker 2: All right, Our panel in place following our conversation with 531 00:25:47,960 --> 00:25:49,840 Speaker 2: one member of Congress and on our way to another. 532 00:25:49,880 --> 00:25:52,359 Speaker 2: Nicole Malia Takis is going to be with us, of course, 533 00:25:52,480 --> 00:25:54,879 Speaker 2: one of the Salt Republicans we refer to so often 534 00:25:54,880 --> 00:25:58,240 Speaker 2: from New York. Rick Davis and Jeanie Shanzeno, our panelists. 535 00:25:58,240 --> 00:26:00,600 Speaker 2: Thank you so much for the insights, Kaylee. We're counting 536 00:26:00,600 --> 00:26:03,080 Speaker 2: down to this meeting at two o'clock. Wouldn't want to 537 00:26:03,119 --> 00:26:06,240 Speaker 2: be necessarily one of these members in the room with 538 00:26:06,320 --> 00:26:09,000 Speaker 2: the speaker right now as the President leaves a trail 539 00:26:09,040 --> 00:26:10,880 Speaker 2: of dust behind him on Capitol Hill. 540 00:26:11,000 --> 00:26:13,160 Speaker 8: Yeah, they already got some stern words from the President. 541 00:26:13,160 --> 00:26:16,000 Speaker 8: The speaker may have some similar ones. Will of course 542 00:26:16,040 --> 00:26:21,280 Speaker 8: continue to keep you updated here on Bloomberg TV and Radio. 543 00:26:22,359 --> 00:26:26,000 Speaker 1: You're listening to the Bloomberg Balance of Power podcast ketchs 544 00:26:26,040 --> 00:26:29,320 Speaker 1: live weekdays at noon and five pm. E's den on Apple, 545 00:26:29,400 --> 00:26:32,760 Speaker 1: Cockley and Android Auto with the Bloomberg Business App. Listen 546 00:26:32,800 --> 00:26:35,919 Speaker 1: on demand wherever you get your podcasts, or watch us 547 00:26:35,960 --> 00:26:37,320 Speaker 1: live on YouTube. 548 00:26:38,480 --> 00:26:41,280 Speaker 8: Hayley lines alongside Joe Matthew here on Bloomberg TV and 549 00:26:41,400 --> 00:26:44,360 Speaker 8: Radio now on Bloomberg Originals as well as we keep 550 00:26:44,400 --> 00:26:48,000 Speaker 8: track on this Tuesday of negotiations still ongoing on Capitol 551 00:26:48,080 --> 00:26:50,800 Speaker 8: Hill over the salt cap. The Speaker actually set to 552 00:26:50,800 --> 00:26:54,640 Speaker 8: meet with holdout Republicans on budget reconciliation, who, of course 553 00:26:54,680 --> 00:26:57,080 Speaker 8: are holding out over the state and local tax deduction 554 00:26:57,160 --> 00:26:59,480 Speaker 8: and a cap that they would like to see move higher, 555 00:26:59,520 --> 00:27:02,520 Speaker 8: even after President Trump met with Republicans in person at 556 00:27:02,520 --> 00:27:07,159 Speaker 8: the Capitol today and told salt Republicans specifically that they 557 00:27:07,160 --> 00:27:10,080 Speaker 8: should stop demanding a higher cap and just get this 558 00:27:10,160 --> 00:27:13,359 Speaker 8: thing passed. One who still is not willing to say 559 00:27:13,400 --> 00:27:15,760 Speaker 8: he'll commit to be a yes vote is Republican Congressman 560 00:27:15,800 --> 00:27:17,919 Speaker 8: Mike Lawler of New York, who caught up with our 561 00:27:17,920 --> 00:27:20,760 Speaker 8: colleague Tyler Kendall in the halls of the Capitol earlier. 562 00:27:21,680 --> 00:27:25,560 Speaker 12: I made the point, Obviously, I respect the President's perspective 563 00:27:25,640 --> 00:27:25,919 Speaker 12: on this. 564 00:27:26,840 --> 00:27:28,600 Speaker 10: We want to get a bill passed. 565 00:27:28,680 --> 00:27:33,040 Speaker 12: We don't want the tax cuts to expire, because that 566 00:27:33,040 --> 00:27:36,679 Speaker 12: would be the largest tax increase in American history. But 567 00:27:36,800 --> 00:27:39,760 Speaker 12: we need to come to an agreement. And I've been 568 00:27:39,880 --> 00:27:41,919 Speaker 12: very clear from the start that I will not support 569 00:27:41,920 --> 00:27:45,240 Speaker 12: a tax bill that does not provide a real tax 570 00:27:45,240 --> 00:27:49,160 Speaker 12: relief to my constituents, and that requires lifting the cap 571 00:27:49,200 --> 00:27:49,760 Speaker 12: on salt. 572 00:27:50,840 --> 00:27:53,840 Speaker 2: And so indeed, this issue surrounding salt, something we've talked 573 00:27:53,840 --> 00:27:56,919 Speaker 2: about for months, in fact years, has now become one 574 00:27:57,000 --> 00:28:01,000 Speaker 2: of the most important factors in resolving this entire effort 575 00:28:01,320 --> 00:28:04,960 Speaker 2: at reconciliation, forwarding the Trump tax cuts and of course 576 00:28:05,000 --> 00:28:08,280 Speaker 2: cutting spending. Nicole Malia Tacis knows a lot about this. 577 00:28:08,320 --> 00:28:11,080 Speaker 2: We've talked about it many times here on Bloomberg TV 578 00:28:11,200 --> 00:28:15,720 Speaker 2: and radio. Congress woman from New York, New York's eleventh district, was, 579 00:28:15,840 --> 00:28:18,960 Speaker 2: in fact a big part of the Salt Caucus. 580 00:28:19,359 --> 00:28:20,560 Speaker 10: Also sits on the. 581 00:28:20,560 --> 00:28:22,680 Speaker 2: Ways and Means Committee and brings her a unique view 582 00:28:22,720 --> 00:28:25,760 Speaker 2: to us. Now, Congresswoman, welcome back. It's great to have you. 583 00:28:25,760 --> 00:28:28,160 Speaker 2: You have more insight here than probably anyone else we're 584 00:28:28,160 --> 00:28:30,159 Speaker 2: going to speak with today. After Mike Lawler, what is 585 00:28:30,200 --> 00:28:32,320 Speaker 2: your sense because I know last time you joined us, 586 00:28:32,720 --> 00:28:35,160 Speaker 2: you made pretty clear that the thirty thousand dollars cap 587 00:28:35,200 --> 00:28:38,040 Speaker 2: that came out of Ways and Means covered the bulk 588 00:28:38,160 --> 00:28:41,720 Speaker 2: that I believe ninety eight percent of your congressional district. 589 00:28:42,120 --> 00:28:44,920 Speaker 2: How about your neighbors, what is the number that's going 590 00:28:44,960 --> 00:28:45,880 Speaker 2: to bring them to a yes. 591 00:28:47,360 --> 00:28:49,640 Speaker 13: Look, I can't speak for my colleagues. I know that 592 00:28:49,680 --> 00:28:52,640 Speaker 13: those who are in long Island, Westchester County. They face 593 00:28:52,920 --> 00:28:56,280 Speaker 13: higher property taxes than we do in my district, so 594 00:28:56,720 --> 00:28:59,280 Speaker 13: you know they I think, though, at some point you 595 00:28:59,360 --> 00:29:02,080 Speaker 13: need to know what the best deal is and just 596 00:29:02,160 --> 00:29:04,680 Speaker 13: take it. I think that it's not just the thirty 597 00:29:04,760 --> 00:29:07,600 Speaker 13: thousand that my constituents are going to benefit from. You know, 598 00:29:07,720 --> 00:29:12,040 Speaker 13: thirty thousand dollars deduction on salt not only covers ninety 599 00:29:12,080 --> 00:29:15,160 Speaker 13: eight percent of my district, but it will put thousands 600 00:29:15,160 --> 00:29:18,000 Speaker 13: of dollars into the pockets of my constituents, allowing them 601 00:29:18,000 --> 00:29:20,080 Speaker 13: to keep more of their hard earned money. And then 602 00:29:20,080 --> 00:29:22,360 Speaker 13: on top of that, you have the child tax Credit, 603 00:29:22,520 --> 00:29:26,200 Speaker 13: which doubled under TCJA, and we're going to add another 604 00:29:26,240 --> 00:29:28,960 Speaker 13: five hundred dollars, making it a twenty five hundred dollars 605 00:29:29,000 --> 00:29:32,400 Speaker 13: per child tax credit for families with children. And if 606 00:29:32,400 --> 00:29:37,720 Speaker 13: you're a senior citizen, four thousand dollars additional deduction, which 607 00:29:37,760 --> 00:29:41,280 Speaker 13: will be roughly six thousand dollars total per senior citizen. 608 00:29:41,320 --> 00:29:43,320 Speaker 13: So if you're a married couple, you're you're talking about 609 00:29:43,360 --> 00:29:47,719 Speaker 13: twelve thousand dollars deduction. If you earn up to seventy 610 00:29:47,720 --> 00:29:50,160 Speaker 13: five thousand dollars as an individual, or one hundred and 611 00:29:50,160 --> 00:29:53,560 Speaker 13: fifty thousand dollars dollars as a married couple, and then 612 00:29:53,600 --> 00:29:57,760 Speaker 13: it phases down when you're up until when your salary 613 00:29:57,960 --> 00:30:00,680 Speaker 13: gets to one hundred and seventy five thousand ind three 614 00:30:00,840 --> 00:30:04,000 Speaker 13: fifty thousand for a married couple. So it's a significant 615 00:30:04,040 --> 00:30:06,920 Speaker 13: tax relief we're talking about for the middle class. And 616 00:30:06,960 --> 00:30:09,320 Speaker 13: we need to get this bill done because not only 617 00:30:09,360 --> 00:30:11,600 Speaker 13: would you see none of this stuff happen, the standard 618 00:30:11,640 --> 00:30:13,640 Speaker 13: deduction will be cut in half, the child tax credit 619 00:30:13,680 --> 00:30:17,000 Speaker 13: would be cut in half. All these lower income tax 620 00:30:17,080 --> 00:30:21,040 Speaker 13: brackets that every single American benefited from would actually then 621 00:30:21,320 --> 00:30:23,600 Speaker 13: go back up, which you know, we're talking about trillions 622 00:30:23,600 --> 00:30:26,880 Speaker 13: of dollars in taxes, not just for individuals, but for 623 00:30:27,280 --> 00:30:30,840 Speaker 13: businesses as well. And so it is it is critical 624 00:30:31,000 --> 00:30:33,480 Speaker 13: that we come together and unite and pass this one 625 00:30:33,560 --> 00:30:36,320 Speaker 13: beautiful bill, which you know, is not just about the 626 00:30:36,360 --> 00:30:40,080 Speaker 13: tax cuts. It's about border security, giving our agents the 627 00:30:40,120 --> 00:30:42,640 Speaker 13: tools they need to do their job. The President's done 628 00:30:42,640 --> 00:30:45,360 Speaker 13: an amazing job securing out border and deporting criminals since 629 00:30:45,400 --> 00:30:48,640 Speaker 13: he's taken office, but they need more resources, they need 630 00:30:48,680 --> 00:30:51,600 Speaker 13: more manpower, and so this bill would also address that. 631 00:30:51,960 --> 00:30:55,400 Speaker 13: And then also really when it comes to domestic energy 632 00:30:55,600 --> 00:30:58,480 Speaker 13: significant production we'll see. 633 00:30:58,320 --> 00:31:00,240 Speaker 6: As a result of this bill as well. 634 00:31:00,360 --> 00:31:04,520 Speaker 13: So it really is incredibly important for our economy that 635 00:31:04,560 --> 00:31:05,320 Speaker 13: we get this done. 636 00:31:05,920 --> 00:31:06,720 Speaker 6: Cannot allow a. 637 00:31:06,680 --> 00:31:09,800 Speaker 13: Tax cut to expire or by the way, a dead default, 638 00:31:10,080 --> 00:31:12,120 Speaker 13: which would happen if we don't get the job done. 639 00:31:13,880 --> 00:31:16,520 Speaker 8: Well, So, Congressman or a congressman, would it be correct 640 00:31:16,560 --> 00:31:18,800 Speaker 8: a characterize the review here? Is it's more important for 641 00:31:18,840 --> 00:31:21,840 Speaker 8: these members who come from swing districts to take advantage 642 00:31:21,840 --> 00:31:24,960 Speaker 8: of the majority that Republicans currently have to get this 643 00:31:25,000 --> 00:31:28,320 Speaker 8: bill passed rather than worry about extending that majority beyond 644 00:31:28,360 --> 00:31:31,240 Speaker 8: twenty twenty six, because that's their argument. They're in swing districts. 645 00:31:31,240 --> 00:31:33,000 Speaker 8: If you want to hold on to the majority, they 646 00:31:33,040 --> 00:31:35,280 Speaker 8: need to make sure they get a higher number. Here, 647 00:31:35,360 --> 00:31:36,720 Speaker 8: is that the wrong way to think about it? 648 00:31:36,760 --> 00:31:36,960 Speaker 10: Now? 649 00:31:37,840 --> 00:31:41,560 Speaker 13: Look, I think tripling the salt deduction is a huge win. 650 00:31:41,880 --> 00:31:44,360 Speaker 13: If they can get it to quadruple to a forty 651 00:31:44,480 --> 00:31:48,479 Speaker 13: thousand dollars deduction, that is really significant, and that is 652 00:31:48,520 --> 00:31:52,240 Speaker 13: saving constituents across New York thousands of dollars. 653 00:31:52,280 --> 00:31:55,280 Speaker 6: And so people will see this the result of this. 654 00:31:55,320 --> 00:31:59,600 Speaker 13: In twenty twenty six when they do their taxes, they'll 655 00:31:59,600 --> 00:32:02,400 Speaker 13: see that they're saving money not just because of assault 656 00:32:02,480 --> 00:32:05,240 Speaker 13: deduction or an increase in the standard deduction if they 657 00:32:05,320 --> 00:32:07,760 Speaker 13: choose that, but because of the child tax credit, because 658 00:32:07,800 --> 00:32:10,720 Speaker 13: of the senior bonus deduction, and because of all the 659 00:32:10,800 --> 00:32:16,280 Speaker 13: other job creating, pro growth policies and tax policy that 660 00:32:16,360 --> 00:32:21,840 Speaker 13: will be in this bill. Look bonus depreciation, interest deductibility, Research. 661 00:32:21,600 --> 00:32:24,000 Speaker 6: And Development one ninety nine A. 662 00:32:24,400 --> 00:32:30,720 Speaker 13: These are all significant, incredibly significant provisions for our economy for. 663 00:32:30,720 --> 00:32:32,800 Speaker 6: Small businesses and large businesses alike. 664 00:32:33,040 --> 00:32:37,040 Speaker 13: The corporate rate that is also very critical to our economy. 665 00:32:37,320 --> 00:32:40,480 Speaker 13: Look the TCJA, people know it was millions of jobs 666 00:32:40,480 --> 00:32:43,760 Speaker 13: were created, you had millions of people lifted out of poverty, 667 00:32:44,120 --> 00:32:47,520 Speaker 13: You had the lowest unemployment among African Americans and Hispanics. 668 00:32:48,440 --> 00:32:49,320 Speaker 6: It was significant. 669 00:32:49,360 --> 00:32:52,040 Speaker 13: We never even saw the full potential, sadly because of 670 00:32:52,080 --> 00:32:53,120 Speaker 13: the COVID pandemic. 671 00:32:53,640 --> 00:32:55,560 Speaker 6: But we can't let any of this expire. 672 00:32:55,600 --> 00:32:57,880 Speaker 13: We need to not only extend it, make as many 673 00:32:57,920 --> 00:33:02,080 Speaker 13: provisions as we can permanent, and then add the new 674 00:33:02,120 --> 00:33:04,640 Speaker 13: provisions at President Trump promise on the campaign trail, and 675 00:33:04,680 --> 00:33:05,840 Speaker 13: that's what this bill does. 676 00:33:07,640 --> 00:33:09,560 Speaker 2: I don't know if you think the President's visit to 677 00:33:09,600 --> 00:33:13,280 Speaker 2: Capitol Hill today will actually change minds Congresswoman, but he 678 00:33:13,360 --> 00:33:17,120 Speaker 2: was quoted in that meeting to say, if you lose 679 00:33:17,160 --> 00:33:20,160 Speaker 2: because of assaults, you were going to lose anyway, And 680 00:33:20,200 --> 00:33:22,520 Speaker 2: I wonder if you actually agree with the principle of 681 00:33:22,520 --> 00:33:23,080 Speaker 2: that statement. 682 00:33:25,080 --> 00:33:27,520 Speaker 13: Look, I don't think an election comes down to the 683 00:33:27,640 --> 00:33:32,000 Speaker 13: salt deduction. And if you are tripling the deduction, you 684 00:33:32,080 --> 00:33:35,160 Speaker 13: are winning for your constituents. You are delivering relief, You're 685 00:33:35,200 --> 00:33:39,440 Speaker 13: delivering results, and that's what needs to be messaged out 686 00:33:39,520 --> 00:33:42,240 Speaker 13: there when you go back home again. I go back 687 00:33:42,240 --> 00:33:44,560 Speaker 13: home and I'm telling my constituents that not only are 688 00:33:44,600 --> 00:33:47,560 Speaker 13: we tripling the deduction, ninety eight percent of our district 689 00:33:47,560 --> 00:33:49,840 Speaker 13: will be covered. If we're able to quadruple it, I'm 690 00:33:49,880 --> 00:33:52,160 Speaker 13: sure all of my district will be covered. But I've 691 00:33:52,160 --> 00:33:54,440 Speaker 13: always been focused in the middle class here. I've never 692 00:33:54,480 --> 00:33:58,400 Speaker 13: been focused on the billionaires or the millionaires. And I 693 00:33:58,440 --> 00:34:01,280 Speaker 13: think the majority of Congress has been focused on these 694 00:34:01,440 --> 00:34:05,920 Speaker 13: middle class tax cuts, and that's what that's what this 695 00:34:05,960 --> 00:34:08,200 Speaker 13: bill does, and I think it may change, and I 696 00:34:08,239 --> 00:34:10,600 Speaker 13: think what the next offer that comes out of the 697 00:34:10,600 --> 00:34:13,680 Speaker 13: Speaker's offer should be the one that is accepted because 698 00:34:14,200 --> 00:34:15,920 Speaker 13: we need to move forward. We need to pass this bill. 699 00:34:15,960 --> 00:34:19,280 Speaker 13: Before Memorial Day. We need to deliver these wins because 700 00:34:19,320 --> 00:34:23,200 Speaker 13: if people see look, if we do nothing, constituents will 701 00:34:23,200 --> 00:34:26,160 Speaker 13: see a tax hike. That's the bottom line, and then 702 00:34:26,239 --> 00:34:28,719 Speaker 13: you will lose an election. I say, let's do what 703 00:34:28,760 --> 00:34:31,720 Speaker 13: we can here significant relief for state and local taxes. 704 00:34:31,760 --> 00:34:34,360 Speaker 13: And also let's hold our mayor and governor accountable. 705 00:34:34,640 --> 00:34:37,400 Speaker 6: Let's remember the reason we need salt relief to begin with. 706 00:34:37,680 --> 00:34:39,160 Speaker 6: We need it because our. 707 00:34:39,040 --> 00:34:43,440 Speaker 13: Mayor, our governor, Kathy Hochel, the state legislature, the Democrats 708 00:34:43,480 --> 00:34:46,600 Speaker 13: that run New York are taxing New Yorkers to death. 709 00:34:46,920 --> 00:34:50,000 Speaker 13: They could easily cut personal income tax rates, just like 710 00:34:50,040 --> 00:34:52,480 Speaker 13: President Trump did in twenty seventeen, they choose not to. 711 00:34:52,760 --> 00:34:54,960 Speaker 6: They can easily cap property taxes. 712 00:34:55,080 --> 00:34:57,479 Speaker 13: New York City is the only county, is the only 713 00:34:57,480 --> 00:34:59,880 Speaker 13: city municipality in New York that does not have a 714 00:35:00,040 --> 00:35:03,359 Speaker 13: property tax cap. They choose not to. Instead, our mayor 715 00:35:03,360 --> 00:35:06,560 Speaker 13: and the city council keep increasing the property tax levy 716 00:35:06,640 --> 00:35:10,640 Speaker 13: year after year after year, hammering New Yorkers to waste 717 00:35:10,680 --> 00:35:13,840 Speaker 13: their money on things like, you know, twelve billions of 718 00:35:13,840 --> 00:35:16,560 Speaker 13: dollars for migrant shelters so criminals can. 719 00:35:16,480 --> 00:35:17,760 Speaker 6: Recavoc on our streets. 720 00:35:18,200 --> 00:35:21,080 Speaker 13: It is ludicrous, and so you know, we as a community, 721 00:35:21,080 --> 00:35:23,520 Speaker 13: as a city, have to also take responsibility and vote 722 00:35:23,520 --> 00:35:25,120 Speaker 13: for people who don't do that to us. 723 00:35:27,320 --> 00:35:30,440 Speaker 8: Congressoman, of course you are now satisfied on the salt issue, 724 00:35:30,440 --> 00:35:33,279 Speaker 8: but that is one of the only out isn't the 725 00:35:33,280 --> 00:35:36,840 Speaker 8: only outstanding issues still in these negotiations. You much earlier 726 00:35:36,840 --> 00:35:39,000 Speaker 8: in this process. We're also one of the lawmakers who 727 00:35:39,040 --> 00:35:42,800 Speaker 8: were raising concerns about cuts to Medicaid being too steep, 728 00:35:42,880 --> 00:35:45,759 Speaker 8: going beyond waste, fraud and abuse, and knowing there are 729 00:35:45,800 --> 00:35:48,720 Speaker 8: still conservative holdouts who are pushing for changes, for example, 730 00:35:48,760 --> 00:35:53,120 Speaker 8: to the federal share of Medicaid payments, other changes. If 731 00:35:53,280 --> 00:35:55,920 Speaker 8: the speaker were to acquiesce to some of those desires 732 00:35:55,920 --> 00:35:59,440 Speaker 8: in order to secure those votes, does he risk losing yours? 733 00:36:00,600 --> 00:36:02,920 Speaker 13: He'll lose a lot of votes if they choose to 734 00:36:03,080 --> 00:36:06,839 Speaker 13: lower the percentage that New York or any other state 735 00:36:06,960 --> 00:36:12,080 Speaker 13: receives in matching funds for our traditional medicaid population. Right now, 736 00:36:12,120 --> 00:36:14,600 Speaker 13: New York receives fifty percent. I made it very clear 737 00:36:14,640 --> 00:36:17,400 Speaker 13: from the beginning that I will not support that being lowered, 738 00:36:18,160 --> 00:36:21,759 Speaker 13: and also the per capita caps on the traditional Medicaid 739 00:36:21,960 --> 00:36:25,319 Speaker 13: that is incredibly important where New York could potentially kick 740 00:36:25,360 --> 00:36:26,880 Speaker 13: in a little more, have a little more skin in 741 00:36:26,880 --> 00:36:29,839 Speaker 13: the game is on the expansion, where New York only 742 00:36:29,880 --> 00:36:32,920 Speaker 13: pays ten percent, the federal government picks ninety percent of 743 00:36:32,960 --> 00:36:33,360 Speaker 13: the share. 744 00:36:34,200 --> 00:36:36,120 Speaker 6: That I don't think is going to change. 745 00:36:36,160 --> 00:36:39,359 Speaker 13: It could change, but that is very different than saying 746 00:36:39,360 --> 00:36:42,400 Speaker 13: we're going to cut the fifty percent match that New 747 00:36:42,480 --> 00:36:45,880 Speaker 13: York receives on the Medicaid. I fought very hard to 748 00:36:45,920 --> 00:36:48,640 Speaker 13: make sure that that provision was left out, and many 749 00:36:48,680 --> 00:36:51,960 Speaker 13: other members also want to see that out. So I 750 00:36:51,960 --> 00:36:54,880 Speaker 13: can't imagine that that would go in at this point, 751 00:36:54,920 --> 00:36:58,160 Speaker 13: in this stage, I think we have the proper balance 752 00:36:58,200 --> 00:36:59,280 Speaker 13: here on the Medicaid. 753 00:36:59,280 --> 00:37:01,280 Speaker 6: We are focused on the fraud, waste, and abuse. 754 00:37:01,680 --> 00:37:05,319 Speaker 13: We're focused on making sure that the illegal immigrants do 755 00:37:05,400 --> 00:37:08,520 Speaker 13: not benefit from our Medicaid dollars. 756 00:37:09,239 --> 00:37:10,520 Speaker 6: And we are. 757 00:37:10,600 --> 00:37:14,000 Speaker 13: Ensuring that there are work requirements for able bodied individuals 758 00:37:14,040 --> 00:37:16,080 Speaker 13: without dependents who or of working age. 759 00:37:16,200 --> 00:37:17,719 Speaker 6: That is very reasonable. 760 00:37:17,760 --> 00:37:20,799 Speaker 13: It is supported by seventy five percent or more of 761 00:37:20,840 --> 00:37:23,719 Speaker 13: the country. So let's stick to the plan here. Let's 762 00:37:23,760 --> 00:37:25,600 Speaker 13: focus on what we need to do. Let's get the 763 00:37:25,680 --> 00:37:28,560 Speaker 13: job done this week, and let's deliver this victory for 764 00:37:28,960 --> 00:37:31,680 Speaker 13: not just the Republicans and President Trump, but for the 765 00:37:31,840 --> 00:37:34,080 Speaker 13: entire country moving this ball forward. 766 00:37:35,120 --> 00:37:38,279 Speaker 2: Well, you've framed this as an awfully important day here, Congresswoman, 767 00:37:38,360 --> 00:37:40,000 Speaker 2: and if things are going to stay on track, it 768 00:37:40,040 --> 00:37:42,120 Speaker 2: will need to be whether we get a deal on 769 00:37:42,160 --> 00:37:44,520 Speaker 2: salt or some of the other concerns that we've talked about. 770 00:37:44,680 --> 00:37:47,960 Speaker 2: I wonder if you've received any assurances from your colleagues 771 00:37:48,040 --> 00:37:50,960 Speaker 2: who are members of the Freedom Caucus, a couple of 772 00:37:51,000 --> 00:37:53,640 Speaker 2: them who serve on the Rules Committee, any assurances that 773 00:37:53,680 --> 00:37:55,880 Speaker 2: things are going to go smoothly at one o'clock in 774 00:37:55,880 --> 00:37:58,880 Speaker 2: the morning when this bill hits rules and that anybody 775 00:37:58,920 --> 00:38:02,000 Speaker 2: with some protest might use their time on the floor 776 00:38:02,040 --> 00:38:04,759 Speaker 2: as opposed to committee. What's going to happen in the 777 00:38:04,760 --> 00:38:05,720 Speaker 2: wee hours of the morning. 778 00:38:06,600 --> 00:38:09,600 Speaker 13: Look, I hope the bill gets passed, and I would 779 00:38:09,600 --> 00:38:14,120 Speaker 13: tell my colleagues is let's focus on incremental wins here. 780 00:38:14,400 --> 00:38:16,880 Speaker 13: We're not going to get everything we want all in 781 00:38:16,880 --> 00:38:19,840 Speaker 13: this one bill, but this is significant. We're saving the 782 00:38:19,880 --> 00:38:24,960 Speaker 13: American taxpayers money, making sure their money is being spent appropriately, 783 00:38:25,080 --> 00:38:26,360 Speaker 13: not on waste for an abuse. 784 00:38:26,400 --> 00:38:31,080 Speaker 6: We're rooting that out. We're going to allow these economy to. 785 00:38:31,080 --> 00:38:34,320 Speaker 13: Thrive and build on the successes of the tax cutting 786 00:38:34,360 --> 00:38:36,759 Speaker 13: jobs up at twenty seventeen, which we know is successful 787 00:38:36,800 --> 00:38:40,759 Speaker 13: and was responsible for lifting wages and bringing people out 788 00:38:40,760 --> 00:38:44,960 Speaker 13: of poverty and giving them jobs. And we cannot afford 789 00:38:45,040 --> 00:38:48,160 Speaker 13: a four trillion dollar tax hike on America. 790 00:38:48,880 --> 00:38:51,640 Speaker 6: We have to get this done. And what I would. 791 00:38:51,440 --> 00:38:55,400 Speaker 13: Also say is, look, we have a thirty seven trillion 792 00:38:55,400 --> 00:38:58,040 Speaker 13: dollar debt. Yes, we all want to address that, but 793 00:38:58,080 --> 00:39:01,399 Speaker 13: we need to do it incrementally. This was created over 794 00:39:01,440 --> 00:39:04,040 Speaker 13: four decades, right, We're not going to change it overnight. 795 00:39:04,440 --> 00:39:06,880 Speaker 13: But whatever we can accomplish as a team, as a 796 00:39:06,920 --> 00:39:10,200 Speaker 13: Republican United Team, will be much better than if you 797 00:39:10,280 --> 00:39:12,879 Speaker 13: have to work with the Democrats across the aisle. It'll 798 00:39:12,920 --> 00:39:15,120 Speaker 13: be much more watered down and you won't get the 799 00:39:15,160 --> 00:39:17,560 Speaker 13: wins that we have here because they don't believe in 800 00:39:17,600 --> 00:39:20,080 Speaker 13: the tax cuts that we believe for the middle class. 801 00:39:20,280 --> 00:39:22,799 Speaker 6: They have made it very clear. 802 00:39:22,520 --> 00:39:24,840 Speaker 13: That they would allow all these tax provisions to expire 803 00:39:25,440 --> 00:39:27,520 Speaker 13: if they had control or they had their way. 804 00:39:27,760 --> 00:39:30,040 Speaker 6: So let's work together, Let's do the best we can. 805 00:39:30,400 --> 00:39:32,560 Speaker 13: Fight as hard as you can for your district, but 806 00:39:32,600 --> 00:39:34,680 Speaker 13: when it comes time to vote, you have to vote 807 00:39:34,680 --> 00:39:36,760 Speaker 13: for it. Because we need to move this ball forward 808 00:39:36,800 --> 00:39:38,640 Speaker 13: and failure is just simply not an option. 809 00:39:40,520 --> 00:39:43,040 Speaker 8: All right, Congressoman, we appreciate you joining us here on 810 00:39:43,080 --> 00:39:46,400 Speaker 8: Balance of Power. As always, Republican Congressoman Nicole Mallytakis of 811 00:39:46,440 --> 00:39:52,800 Speaker 8: New York with us live from Capitol Hill. 812 00:39:52,840 --> 00:39:56,040 Speaker 2: Thanks for listening to the Balance of Power podcast. Make 813 00:39:56,080 --> 00:39:59,000 Speaker 2: sure to subscribe if you haven't already an Apple, Spotify, 814 00:39:59,120 --> 00:40:01,840 Speaker 2: or wherever you get your and you can find us 815 00:40:01,920 --> 00:40:05,400 Speaker 2: live every weekday from Washington, DC at noontime Eastern at 816 00:40:05,480 --> 00:40:06,960 Speaker 2: Bloomberg dot com.