1 00:00:02,520 --> 00:00:07,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,280 --> 00:00:08,600 Speaker 2: Let's turn back to Capitol Hill. 3 00:00:08,800 --> 00:00:12,080 Speaker 3: The Treasury Secretary Scimpesson saying how since Senate Republicans can 4 00:00:12,119 --> 00:00:14,680 Speaker 3: cut a deal on salt within the next two days, 5 00:00:14,840 --> 00:00:17,880 Speaker 3: believing senators can begin voting on the bill by Friday, 6 00:00:18,079 --> 00:00:21,960 Speaker 3: President Donald Trump writing, no one goes on vacation until 7 00:00:22,000 --> 00:00:24,240 Speaker 3: it's done. The former chief of staff the Vice President, 8 00:00:24,280 --> 00:00:26,560 Speaker 3: Mike penns Mark Short, joined us now for more. Mark, 9 00:00:26,560 --> 00:00:28,479 Speaker 3: good morning, Good to see you as always, Thanks for 10 00:00:28,520 --> 00:00:30,440 Speaker 3: being here, Thank you for being here. You're a big 11 00:00:30,480 --> 00:00:33,000 Speaker 3: part of passing the president's first tax bill in his 12 00:00:33,120 --> 00:00:36,000 Speaker 3: first term. How different is this effort? How much harder 13 00:00:36,040 --> 00:00:36,720 Speaker 3: is it this time? 14 00:00:37,360 --> 00:00:39,920 Speaker 1: I actually don't think it is harder, because I think 15 00:00:40,000 --> 00:00:42,240 Speaker 1: the prospect of having a two and a half treeon 16 00:00:42,280 --> 00:00:45,080 Speaker 1: hour in tax increase for a lot of Americans or 17 00:00:45,200 --> 00:00:48,200 Speaker 1: twenty one hundred dollars per family is a big enough 18 00:00:48,240 --> 00:00:51,279 Speaker 1: threat that it keeps you Republicans united. So there's going 19 00:00:51,320 --> 00:00:53,080 Speaker 1: to be a lot of noise over the next several days, 20 00:00:53,120 --> 00:00:56,040 Speaker 1: and a lot of noise on the Medicaid provisions will 21 00:00:56,040 --> 00:00:59,120 Speaker 1: being noise unsolved, But I think ultimately there'll be sufficient 22 00:00:59,200 --> 00:01:00,000 Speaker 1: votes in the House and. 23 00:01:00,120 --> 00:01:00,920 Speaker 2: Sent to get it done. 24 00:01:01,000 --> 00:01:02,680 Speaker 3: Can we get to the noise on sol And I'd 25 00:01:02,680 --> 00:01:05,240 Speaker 3: love your personal opinion on this. What you think they 26 00:01:05,280 --> 00:01:08,160 Speaker 3: should do that they aren't doing right now? 27 00:01:08,280 --> 00:01:11,360 Speaker 1: Well, I think from a policy perspective, the salt provisions 28 00:01:11,360 --> 00:01:13,600 Speaker 1: are terrible. I think the reality is that you have 29 00:01:13,920 --> 00:01:17,880 Speaker 1: Middle America subsidizing blue states that are poorly run, and 30 00:01:18,200 --> 00:01:21,319 Speaker 1: they have enormous deficits, and so they provide enormous deductions 31 00:01:21,319 --> 00:01:24,200 Speaker 1: because their taxes are so high, it provides no incentive 32 00:01:24,200 --> 00:01:26,960 Speaker 1: for them to actually fix their own problems if their 33 00:01:27,000 --> 00:01:30,920 Speaker 1: wealthiest tax payers are able to have enormous deductions. Having 34 00:01:30,959 --> 00:01:33,000 Speaker 1: said that, what I think is actually going to happen 35 00:01:33,440 --> 00:01:35,399 Speaker 1: is they think that with the standard deduction now at 36 00:01:35,440 --> 00:01:38,240 Speaker 1: thirty thousand dollars, the priority for those who want the 37 00:01:38,280 --> 00:01:40,679 Speaker 1: salt deduction is to get it to forty thousand, but 38 00:01:40,720 --> 00:01:44,399 Speaker 1: they'll lower the income threshold. Now, how many people have 39 00:01:44,560 --> 00:01:47,920 Speaker 1: income under forty four hundred thousand dollars they're taking deductions 40 00:01:47,960 --> 00:01:50,520 Speaker 1: of over forty thousand, I think is probably a pretty 41 00:01:50,560 --> 00:01:53,760 Speaker 1: small number. But the realtor base, actually the lobby base, 42 00:01:54,240 --> 00:01:56,720 Speaker 1: is more concerned about getting the deduction back because one 43 00:01:56,720 --> 00:02:00,360 Speaker 1: of the provisions that we pass twenty seventeen. Prior to that, 44 00:02:00,640 --> 00:02:04,120 Speaker 1: there were thirty one percent of taxpayers itemized. Today it's 45 00:02:04,160 --> 00:02:07,400 Speaker 1: down to nine or ten percent. And the real estate 46 00:02:07,440 --> 00:02:09,799 Speaker 1: industry wants that back, and so I think you're going 47 00:02:09,800 --> 00:02:12,880 Speaker 1: to see them fight for the forty thousand, the lower 48 00:02:12,919 --> 00:02:13,760 Speaker 1: the income threshold. 49 00:02:13,840 --> 00:02:15,640 Speaker 4: I will just say New York does contribute about eight 50 00:02:15,639 --> 00:02:18,160 Speaker 4: percent of the GDP to the overall United States of America, 51 00:02:18,200 --> 00:02:19,880 Speaker 4: and it doesn't get the same amount back. So there 52 00:02:19,919 --> 00:02:22,200 Speaker 4: is this argument being made by a lot of representatives 53 00:02:22,200 --> 00:02:25,760 Speaker 4: in New York that actually the US is the number 54 00:02:25,800 --> 00:02:28,840 Speaker 4: of blue states have been cheated by US spending. So 55 00:02:28,919 --> 00:02:31,120 Speaker 4: I mean that is sort of a backdrop here, just 56 00:02:31,120 --> 00:02:31,880 Speaker 4: to recognize that. 57 00:02:32,400 --> 00:02:35,560 Speaker 1: I think leastly just argument go on a per capita basis. Sure, 58 00:02:35,560 --> 00:02:37,280 Speaker 1: but I think it's hard to argue that New York 59 00:02:37,320 --> 00:02:39,800 Speaker 1: and federal cities aren't getting their fair share of federal dollars. 60 00:02:40,200 --> 00:02:42,400 Speaker 4: To take a step back and beyond the SEL debate, 61 00:02:42,440 --> 00:02:43,919 Speaker 4: which I'm sure it could be, we don't want to 62 00:02:43,919 --> 00:02:44,600 Speaker 4: get to New York. 63 00:02:44,520 --> 00:02:45,360 Speaker 2: Social media spending. 64 00:02:45,800 --> 00:02:48,680 Speaker 4: Social media spending, I'm telling you, just definitely invest in 65 00:02:48,680 --> 00:02:51,520 Speaker 4: in hone those strategies. But I am curious about, you know, 66 00:02:51,639 --> 00:02:54,480 Speaker 4: just going forward, how important it is to get those 67 00:02:54,480 --> 00:02:59,040 Speaker 4: offsets and how to attenuated. Some of the Republican Congress 68 00:02:59,080 --> 00:03:02,400 Speaker 4: members are to offsetting any kind of increase the deficit, 69 00:03:02,760 --> 00:03:06,359 Speaker 4: if it's not from potential cuts, then from increasing tariffs. 70 00:03:06,919 --> 00:03:09,560 Speaker 1: Well, okay, those are two big different questions. I'm a 71 00:03:09,560 --> 00:03:11,560 Speaker 1: little bit cynical on this, I confess to you. The 72 00:03:11,600 --> 00:03:14,440 Speaker 1: reality is that neither party is addressing was driving that 73 00:03:14,480 --> 00:03:16,880 Speaker 1: the deficit is the debt. Neither party is willing to 74 00:03:17,000 --> 00:03:19,959 Speaker 1: address entitlements pending. So you're going to hear people who 75 00:03:20,000 --> 00:03:22,360 Speaker 1: pound their chest and say we're fiscal conservatives and we 76 00:03:22,400 --> 00:03:25,320 Speaker 1: need more cuts here, but we're really talking about pennies 77 00:03:25,320 --> 00:03:26,960 Speaker 1: on the margin of the size of this bill and 78 00:03:26,960 --> 00:03:29,440 Speaker 1: the size of where our debt is today. So if 79 00:03:29,480 --> 00:03:31,799 Speaker 1: they were really serious about wanting to cut the debt, 80 00:03:31,840 --> 00:03:34,320 Speaker 1: they'd actually be addressing in titlements. And so yeah, I 81 00:03:34,360 --> 00:03:37,520 Speaker 1: think you'll see some posturing from some people, but ultimately, 82 00:03:37,560 --> 00:03:39,120 Speaker 1: again I think they're going to fall in line because 83 00:03:39,280 --> 00:03:41,200 Speaker 1: it's not just the fact you have an enormous tax 84 00:03:41,240 --> 00:03:44,440 Speaker 1: increase on working families. There's also significant border funding in 85 00:03:44,440 --> 00:03:45,840 Speaker 1: this And if you can tell me that they're going 86 00:03:45,880 --> 00:03:48,360 Speaker 1: to be members from border states who are Republicans are 87 00:03:48,360 --> 00:03:50,480 Speaker 1: going to pose this bill with President Trump in the 88 00:03:50,520 --> 00:03:52,840 Speaker 1: White House. I just don't see it happening now. On 89 00:03:52,880 --> 00:03:55,240 Speaker 1: the terroriffs, look, the reality is you talk about the 90 00:03:55,280 --> 00:03:58,320 Speaker 1: significant revenue coming in. I think that again, that's a 91 00:03:58,440 --> 00:04:00,760 Speaker 1: tax on the American people. That's what the Repords Company 92 00:04:00,800 --> 00:04:03,360 Speaker 1: is not coming from foreign Government's coming from American importers. 93 00:04:03,680 --> 00:04:05,640 Speaker 1: And the reality is you're one hundred percent right on 94 00:04:05,680 --> 00:04:08,440 Speaker 1: the days of this that you know we're anticipating from 95 00:04:08,440 --> 00:04:11,560 Speaker 1: Peter Navarro ninety deals in ninety days. We see where 96 00:04:11,560 --> 00:04:14,200 Speaker 1: that's con so far. And I think they wanted to 97 00:04:14,240 --> 00:04:16,120 Speaker 1: push the July nine D eight because they're hoping they 98 00:04:16,200 --> 00:04:18,039 Speaker 1: get this all wrapped up by July fourth. If it 99 00:04:18,080 --> 00:04:20,160 Speaker 1: slides past July fourth, I think you'll see that date 100 00:04:20,240 --> 00:04:22,560 Speaker 1: slide as well. But you're going to continue to see 101 00:04:22,560 --> 00:04:24,120 Speaker 1: I think the President wants the leverage to be able 102 00:04:24,160 --> 00:04:26,320 Speaker 1: to use the tariffs however he wants whenever he wants, 103 00:04:26,320 --> 00:04:28,560 Speaker 1: which provides enormous uncertainty in the economy. 104 00:04:28,839 --> 00:04:31,000 Speaker 3: The presidents of the Nights have summer today. I'd love 105 00:04:31,000 --> 00:04:32,840 Speaker 3: to turn to foreign policy with you. What did you 106 00:04:32,839 --> 00:04:34,720 Speaker 3: think through the strike server at a weekend and the current 107 00:04:34,880 --> 00:04:36,720 Speaker 3: posture of this administration. 108 00:04:37,080 --> 00:04:38,919 Speaker 1: I think it was exactly the right call, and I 109 00:04:38,960 --> 00:04:41,359 Speaker 1: think that it's actually pretty consistent with where he was 110 00:04:41,360 --> 00:04:44,320 Speaker 1: in the first administration if you recall the maximum pressure 111 00:04:44,400 --> 00:04:47,200 Speaker 1: campaign and the strike on solid Money. I think what 112 00:04:47,360 --> 00:04:49,760 Speaker 1: is different is that I think the first administration had 113 00:04:49,760 --> 00:04:52,480 Speaker 1: a pretty united foreign policy. I think there's much more 114 00:04:52,520 --> 00:04:55,760 Speaker 1: divergence in the second administration on what that foreign policy. 115 00:04:55,400 --> 00:04:57,480 Speaker 2: Is within the White House, I think, so I. 116 00:04:57,400 --> 00:04:59,920 Speaker 1: Think within the White House too, not just with outside. 117 00:05:00,080 --> 00:05:01,479 Speaker 2: What do you think the biggest difference is at the 118 00:05:01,480 --> 00:05:02,520 Speaker 2: moment within the White Well. 119 00:05:02,560 --> 00:05:04,680 Speaker 1: I think that there's a lot of people who have 120 00:05:04,839 --> 00:05:09,240 Speaker 1: embraced sort of the isolationism of the party today, and 121 00:05:09,279 --> 00:05:11,600 Speaker 1: I think they are represented, their voices are representing the 122 00:05:11,600 --> 00:05:13,880 Speaker 1: White House. But I think the President made the right decision, 123 00:05:14,520 --> 00:05:18,840 Speaker 1: and I think that I think moving forward, Iran wants 124 00:05:19,040 --> 00:05:21,400 Speaker 1: ceasefire because it buys some more time. I mean, how 125 00:05:21,400 --> 00:05:24,359 Speaker 1: many seasefires have Iran and Hamas agreed to since the 126 00:05:24,440 --> 00:05:27,160 Speaker 1: Ranian Revolution forty six years ago. So I think it's 127 00:05:27,200 --> 00:05:28,960 Speaker 1: important in the United States stand with Israel. 128 00:05:29,040 --> 00:05:31,000 Speaker 3: And this is going to sound somewhat contradictory. But to 129 00:05:31,040 --> 00:05:35,080 Speaker 3: be successfully isolationists, do you have to be interventionists sometime? 130 00:05:35,560 --> 00:05:38,640 Speaker 3: Do you have to demonstrate that to do nothing you 131 00:05:38,640 --> 00:05:39,880 Speaker 3: have to be willing to do something now? 132 00:05:39,920 --> 00:05:43,800 Speaker 1: Again, Well, that assumes that those who are articulating isolation's 133 00:05:43,880 --> 00:05:46,839 Speaker 1: views today are actually consistent in their viewpoints. I think 134 00:05:46,839 --> 00:05:48,839 Speaker 1: that in many cases there are plenty of grifters that 135 00:05:48,839 --> 00:05:52,480 Speaker 1: have surrounded the president and so they were isolations in 136 00:05:52,520 --> 00:05:55,120 Speaker 1: this moment, they were interventionists eight, nine, ten years ago. 137 00:05:55,320 --> 00:05:57,599 Speaker 1: So I think the premise of your question applies there's 138 00:05:57,600 --> 00:05:59,760 Speaker 1: actually consistency on those articularly in that few today, And 139 00:05:59,760 --> 00:06:00,560 Speaker 1: I don't think there. 140 00:06:00,480 --> 00:06:02,520 Speaker 4: Is just pairing this with NATO. Do we have a 141 00:06:02,560 --> 00:06:04,440 Speaker 4: sense of what the final word is going to be 142 00:06:04,440 --> 00:06:07,560 Speaker 4: with Russia and Russia Ukraine? Given the willingness to use 143 00:06:07,600 --> 00:06:10,960 Speaker 4: intervention in or on, is there a discussion around that 144 00:06:11,000 --> 00:06:13,800 Speaker 4: and support for that in the case of Russia. 145 00:06:13,880 --> 00:06:16,400 Speaker 1: I think that's one of the biggest, starkest differences between 146 00:06:16,440 --> 00:06:19,480 Speaker 1: the first administration and the second administration. And the first administration. 147 00:06:19,600 --> 00:06:22,760 Speaker 1: President Trump would be very proud about having sent Javelin 148 00:06:22,760 --> 00:06:25,960 Speaker 1: missiles and talked and ridiculed that Obama only sent blankets 149 00:06:25,960 --> 00:06:29,919 Speaker 1: to Ukraine, there was plenty of I think deterrence against Russia. 150 00:06:30,000 --> 00:06:32,200 Speaker 1: That it seems this time around that is not that 151 00:06:32,240 --> 00:06:35,680 Speaker 1: same position, and so I'm not sure that what happened 152 00:06:35,680 --> 00:06:37,880 Speaker 1: in the Middle East and Iran actually applies to what's 153 00:06:37,880 --> 00:06:39,800 Speaker 1: going to happen in Ukraine and Russia. It seems that 154 00:06:39,880 --> 00:06:43,279 Speaker 1: this administration is not as supportive in Ukraine as the first. 155 00:06:43,080 --> 00:06:45,560 Speaker 2: Trump administration UK What do you think changed. 156 00:06:47,040 --> 00:06:48,800 Speaker 1: I think that there's several things that change. I do 157 00:06:48,880 --> 00:06:51,200 Speaker 1: think that there's a different personnel in the White ass 158 00:06:51,240 --> 00:06:53,480 Speaker 1: I think that from where it was as far as 159 00:06:53,520 --> 00:06:56,359 Speaker 1: the State Department, the National Security Staff, and frankly the 160 00:06:56,400 --> 00:06:58,919 Speaker 1: Vice President. I think those are big personnel changes that 161 00:06:58,960 --> 00:07:00,000 Speaker 1: differ in this form policy. 162 00:07:00,480 --> 00:07:02,400 Speaker 3: Make sure I appreciate your time as always. Good to 163 00:07:02,440 --> 00:07:04,440 Speaker 3: see you, Thanks for being here. Really good to see you.