1 00:00:02,480 --> 00:00:08,560 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. We're really glad to 2 00:00:08,600 --> 00:00:11,960 Speaker 1: be joined by Congressman Mike Lawler, the Republican from New 3 00:00:12,039 --> 00:00:14,360 Speaker 1: York is with us now live from Capitol Hill. There 4 00:00:14,400 --> 00:00:16,680 Speaker 1: is news of a deal on salt, a forty thousand 5 00:00:16,760 --> 00:00:20,320 Speaker 1: dollars cap. If that's real, Congressman, you managed to quadruple 6 00:00:20,440 --> 00:00:22,759 Speaker 1: the current cap. Is that the kind of bacon that 7 00:00:22,800 --> 00:00:23,560 Speaker 1: you can bring home? 8 00:00:24,960 --> 00:00:29,000 Speaker 2: But this was a critically important negotiation. I was very 9 00:00:29,080 --> 00:00:31,960 Speaker 2: clear for over two years that I would never support 10 00:00:32,000 --> 00:00:35,000 Speaker 2: a tax bill that did not adequately lift the cap 11 00:00:35,159 --> 00:00:40,000 Speaker 2: on salt. We put pen to paper yesterday, met with leadership, 12 00:00:40,400 --> 00:00:43,120 Speaker 2: worked throughout the course of the day to come to 13 00:00:43,479 --> 00:00:47,279 Speaker 2: an agreement that would lift the cap on salt and 14 00:00:47,320 --> 00:00:51,760 Speaker 2: provide real and immediate and lasting tax relief for hardworking 15 00:00:51,800 --> 00:00:54,960 Speaker 2: middle class families. The agreement would lift the cap to 16 00:00:55,200 --> 00:00:58,280 Speaker 2: forty thousand, with an income cap of five hundred thousand 17 00:00:58,320 --> 00:01:02,440 Speaker 2: that would be phased out, and anyone making above that 18 00:01:02,480 --> 00:01:04,760 Speaker 2: would go back down to ten thousand, which is the 19 00:01:04,840 --> 00:01:09,000 Speaker 2: current cap. And it provides for the entirety of the 20 00:01:09,040 --> 00:01:12,920 Speaker 2: ten years of the bill, which is critically important to 21 00:01:13,040 --> 00:01:16,640 Speaker 2: make sure that folks are getting real relief. You look 22 00:01:16,680 --> 00:01:19,199 Speaker 2: at a district like mine, three of the top four 23 00:01:19,680 --> 00:01:22,280 Speaker 2: of the four counties I represent are in the top 24 00:01:22,360 --> 00:01:26,040 Speaker 2: sixteen highest property tax counties in America. So when we 25 00:01:26,080 --> 00:01:29,039 Speaker 2: talk about these issues, this isn't about the rich. This 26 00:01:29,120 --> 00:01:32,680 Speaker 2: is about providing tax relief to middle class families who 27 00:01:32,720 --> 00:01:36,679 Speaker 2: are besieged by high property taxes and high income taxes. 28 00:01:37,080 --> 00:01:39,440 Speaker 2: And many of my colleagues will say that a lot 29 00:01:39,480 --> 00:01:43,520 Speaker 2: of people don't itemize and they don't take the salt deduction. Well, 30 00:01:43,920 --> 00:01:47,120 Speaker 2: that's true, because we doubled the standard deduction, and part 31 00:01:47,120 --> 00:01:50,040 Speaker 2: of the pay for for doubling that was salt. And 32 00:01:50,120 --> 00:01:53,280 Speaker 2: so we're seeking, after seven years of having this ten 33 00:01:53,320 --> 00:01:57,080 Speaker 2: thousand dollars cap, to provide real relief to the middle class. 34 00:01:57,080 --> 00:01:58,200 Speaker 2: And that's what this is about. 35 00:02:00,000 --> 00:02:03,160 Speaker 3: Congressman, should we take that to assume, with the terms 36 00:02:03,200 --> 00:02:05,280 Speaker 3: of this deal, that you are now a yes on 37 00:02:05,320 --> 00:02:08,600 Speaker 3: this legislation, And assuming you are, are you aware of 38 00:02:08,680 --> 00:02:11,080 Speaker 3: any member of the Salt Caucus who was not yet 39 00:02:11,440 --> 00:02:12,320 Speaker 3: too yes with you? 40 00:02:14,080 --> 00:02:18,480 Speaker 2: I think the members of the Salt Caucus negotiated yesterday 41 00:02:18,520 --> 00:02:22,320 Speaker 2: in good faith with leadership with the administration, and we 42 00:02:22,440 --> 00:02:26,079 Speaker 2: settled on something that we believe in that we support. 43 00:02:26,639 --> 00:02:30,240 Speaker 2: Obviously we're waiting for the final details to emerge out 44 00:02:30,240 --> 00:02:34,280 Speaker 2: of the Rules Committee, but obviously we made great progress 45 00:02:34,400 --> 00:02:37,760 Speaker 2: yesterday and I feel much better about where the bill is. 46 00:02:38,440 --> 00:02:39,359 Speaker 2: As a result. 47 00:02:40,400 --> 00:02:43,200 Speaker 1: There does seem to be some growing optimism over a 48 00:02:43,240 --> 00:02:46,800 Speaker 1: possible floor vote as soon as today, Congressman, maybe tomorrow. 49 00:02:46,880 --> 00:02:48,679 Speaker 1: I know the Speaker wanted to see it happen by 50 00:02:48,840 --> 00:02:50,840 Speaker 1: the Memorial Day break. Will that be the case. 51 00:02:52,360 --> 00:02:56,520 Speaker 2: I know the administration and leadership are working to get 52 00:02:56,560 --> 00:03:01,680 Speaker 2: that done. Meeting with members today, Obviously, you know that 53 00:03:01,800 --> 00:03:05,240 Speaker 2: time frame is something the Speaker set out to achieve. 54 00:03:05,560 --> 00:03:09,560 Speaker 2: The objective here is to get the bill passed ultimately 55 00:03:09,760 --> 00:03:12,799 Speaker 2: to take effect, to make sure that we are providing 56 00:03:12,880 --> 00:03:16,400 Speaker 2: real tax relief, that we are securing our border, that 57 00:03:16,440 --> 00:03:20,519 Speaker 2: we are strengthening our military, increasing domestic production of energy, 58 00:03:20,800 --> 00:03:25,639 Speaker 2: and protecting vital programs like Medicaid long term and cutting 59 00:03:25,639 --> 00:03:29,840 Speaker 2: out the waste, fraud, abuse, and making sure that illegal immigrants, 60 00:03:29,840 --> 00:03:34,160 Speaker 2: for instance, are not receiving benefits and taking away from 61 00:03:34,240 --> 00:03:37,040 Speaker 2: the very people who rely on these programs, like the 62 00:03:37,720 --> 00:03:41,080 Speaker 2: idd community or our seniors or children. We want to 63 00:03:41,120 --> 00:03:44,280 Speaker 2: protect this for the long term, get our fiscal house 64 00:03:44,280 --> 00:03:47,040 Speaker 2: in order while providing real tax relief. That's what this 65 00:03:47,120 --> 00:03:50,400 Speaker 2: bill is about. We've been working on it for months. Obviously, 66 00:03:51,320 --> 00:03:53,800 Speaker 2: anytime you're negotiating, there's going to be a give and take, 67 00:03:53,880 --> 00:03:56,240 Speaker 2: there's going to be a back and forth. You know, 68 00:03:56,720 --> 00:03:59,880 Speaker 2: you work through these issues and come to an agree 69 00:04:00,360 --> 00:04:03,480 Speaker 2: and you know, as I've said many times, anybody who's 70 00:04:03,480 --> 00:04:05,560 Speaker 2: ever been married knows you're going to have to find 71 00:04:05,600 --> 00:04:08,000 Speaker 2: compromises along the way. You're not going to get everything 72 00:04:08,040 --> 00:04:10,880 Speaker 2: you want in life. So you've got to work through this. 73 00:04:10,960 --> 00:04:12,520 Speaker 2: And that's what we've done in good faith. 74 00:04:14,000 --> 00:04:17,400 Speaker 3: Well, and it's not just compromises within the House Republican Conference, 75 00:04:17,400 --> 00:04:19,680 Speaker 3: but there also may need to be compromises made between 76 00:04:19,720 --> 00:04:23,120 Speaker 3: the House and Senate, which will take up this measure next, 77 00:04:23,160 --> 00:04:25,600 Speaker 3: assuming it can get off the House floor. Congressman, has 78 00:04:25,640 --> 00:04:28,200 Speaker 3: the Speaker shared with you any assurances that the Senate 79 00:04:28,600 --> 00:04:31,240 Speaker 3: will not make changes to the salt deal that he 80 00:04:31,400 --> 00:04:33,240 Speaker 3: just negotiated with you and your colleagues. 81 00:04:34,320 --> 00:04:37,920 Speaker 2: This obviously has been a big topic of conversation, and 82 00:04:38,200 --> 00:04:42,000 Speaker 2: I'll keep those conversations private, but I certainly know that 83 00:04:42,040 --> 00:04:45,719 Speaker 2: the Speaker understands how important it is that this agreement 84 00:04:45,839 --> 00:04:47,839 Speaker 2: remain intact, I. 85 00:04:47,880 --> 00:04:49,480 Speaker 1: Want to go back to the case that you made 86 00:04:49,800 --> 00:04:52,800 Speaker 1: for raising the salt cap. In the outset Congressman, we 87 00:04:52,880 --> 00:04:56,520 Speaker 1: heard from Chip Roy of course, allowed member of the 88 00:04:56,560 --> 00:04:58,520 Speaker 1: Freedom Caucus, who I understand is going to be meeting 89 00:04:58,520 --> 00:05:01,760 Speaker 1: with the President later on today. He suggested that leadership 90 00:05:01,800 --> 00:05:04,960 Speaker 1: is buying quote, a handful of seats with three hundred 91 00:05:05,000 --> 00:05:08,440 Speaker 1: and fifty billion dollars in parochial tax subsidies in the 92 00:05:08,440 --> 00:05:11,120 Speaker 1: form of salts. Is it possible to have a conversation 93 00:05:11,200 --> 00:05:12,800 Speaker 1: with someone who holds that point of view or are 94 00:05:12,839 --> 00:05:13,800 Speaker 1: you counting them out? 95 00:05:15,080 --> 00:05:15,400 Speaker 3: Listen. 96 00:05:15,640 --> 00:05:18,520 Speaker 2: I respect all my colleagues and their perspectives. The fact 97 00:05:18,600 --> 00:05:21,280 Speaker 2: is New York is a donor state. We send more 98 00:05:21,279 --> 00:05:24,000 Speaker 2: money down to Washington than we get back. So we 99 00:05:24,000 --> 00:05:27,560 Speaker 2: can get into the subsidy debate about which states are 100 00:05:27,600 --> 00:05:30,120 Speaker 2: taking money from the federal government and which ones are 101 00:05:30,160 --> 00:05:33,200 Speaker 2: actually helping fund the federal government. But the fact is 102 00:05:33,520 --> 00:05:36,680 Speaker 2: that New Yorkers should not be double tax They should 103 00:05:36,720 --> 00:05:40,159 Speaker 2: not be penalized for living in a high tax state. 104 00:05:40,800 --> 00:05:43,839 Speaker 2: Salt was in effect for over one hundred years, and 105 00:05:43,920 --> 00:05:47,239 Speaker 2: it was used as a pay for, and frankly, part 106 00:05:47,279 --> 00:05:49,919 Speaker 2: of that pay for was to double the standard deduction 107 00:05:50,279 --> 00:05:53,719 Speaker 2: and provide tax relief to Americans all across this country. 108 00:05:54,000 --> 00:05:56,920 Speaker 2: We're just simply saying, after seven years of the ten 109 00:05:57,000 --> 00:06:00,839 Speaker 2: thousand dollars cap, which was arbitrary and caprice, that we 110 00:06:00,960 --> 00:06:04,360 Speaker 2: need to have a much fairer approach. And that's what 111 00:06:04,400 --> 00:06:07,920 Speaker 2: we have negotiated. Everybody has understood this for well over 112 00:06:08,000 --> 00:06:10,360 Speaker 2: two years. I ran on this, I fought for it. 113 00:06:10,440 --> 00:06:12,599 Speaker 2: I said it very clearly from the moment I came 114 00:06:12,640 --> 00:06:15,640 Speaker 2: here that I would never support a bill that doesn't 115 00:06:15,640 --> 00:06:18,560 Speaker 2: adequately lift the cap on salt. We have been working 116 00:06:18,600 --> 00:06:22,719 Speaker 2: to negotiate to an agreement, and so that's what we've done, 117 00:06:22,839 --> 00:06:25,200 Speaker 2: and I stand by it well. 118 00:06:25,240 --> 00:06:27,760 Speaker 3: And of course you and your fellow New Yorkers who 119 00:06:27,760 --> 00:06:30,360 Speaker 3: have helped make the Republican majority, have made the case 120 00:06:30,400 --> 00:06:32,360 Speaker 3: that if that majority is to be retained, there needs 121 00:06:32,400 --> 00:06:34,840 Speaker 3: to be changes to salt. But as we look ahead 122 00:06:35,240 --> 00:06:37,800 Speaker 3: to twenty twenty six, if the other side of this 123 00:06:38,000 --> 00:06:41,080 Speaker 3: getting what you want on salt is conservatives also getting 124 00:06:41,080 --> 00:06:44,600 Speaker 3: a pulling forward of stricter work requirements around Medicaid to 125 00:06:44,640 --> 00:06:47,800 Speaker 3: begin in December of twenty twenty six, as we understand, 126 00:06:47,839 --> 00:06:50,240 Speaker 3: does that not put the majority at risk for a 127 00:06:50,279 --> 00:06:53,039 Speaker 3: whole other reason. How do you navigate around that issue 128 00:06:53,040 --> 00:06:53,719 Speaker 3: in the midterms. 129 00:06:54,839 --> 00:06:56,640 Speaker 2: Well, look, at the end of the day, I think 130 00:06:56,680 --> 00:07:00,640 Speaker 2: there's broad consensus within the conference on a few key areas. 131 00:07:00,720 --> 00:07:04,240 Speaker 2: Number one, eligibility verification making sure that somebody who is 132 00:07:04,279 --> 00:07:07,719 Speaker 2: not eligible doesn't remain on the program for up to 133 00:07:07,800 --> 00:07:12,360 Speaker 2: a year, which is what the Biden administration allowed. Citizenship verification, 134 00:07:12,480 --> 00:07:15,680 Speaker 2: making sure that illegal immigrants are not receiving benefits that 135 00:07:15,680 --> 00:07:19,440 Speaker 2: they're not entitled to. And work requirements. Able bodied adults 136 00:07:19,480 --> 00:07:22,960 Speaker 2: without dependence should be trying to work. I mean you're 137 00:07:22,960 --> 00:07:27,160 Speaker 2: talking about eighty hours a month of work requirements, or 138 00:07:27,320 --> 00:07:32,360 Speaker 2: educational requirements or volunteering. Anybody who is able bodied should 139 00:07:32,440 --> 00:07:36,880 Speaker 2: be trying to improve their life by working. The fact 140 00:07:37,000 --> 00:07:40,840 Speaker 2: is Medicaid is a means tested program, and so as 141 00:07:40,960 --> 00:07:44,400 Speaker 2: part of that, you are trying to help lift people up, 142 00:07:44,560 --> 00:07:47,880 Speaker 2: lift them out of poverty, lift them out of their situation. 143 00:07:48,360 --> 00:07:52,480 Speaker 2: Work requirements are something Democrats fought for for years. Bill 144 00:07:52,520 --> 00:07:56,480 Speaker 2: Clinton was the biggest champion of work requirements. So I 145 00:07:56,520 --> 00:08:01,520 Speaker 2: don't think the issue of work requirements speeding up from 146 00:08:01,560 --> 00:08:06,360 Speaker 2: twenty nine to twenty seven is frankly an impediment. I 147 00:08:06,400 --> 00:08:09,240 Speaker 2: think there's broad consensus that we should be trying to 148 00:08:09,280 --> 00:08:13,360 Speaker 2: help people lift themselves up. Work requirements is a way 149 00:08:13,360 --> 00:08:16,960 Speaker 2: to help facilitate that as we are providing them with 150 00:08:17,120 --> 00:08:18,320 Speaker 2: support through Medicaid. 151 00:08:19,680 --> 00:08:22,080 Speaker 3: All right, Congressman, we appreciate you joining us here on 152 00:08:22,120 --> 00:08:25,520 Speaker 3: Bloomberg TV and radio. Republican Congressman Mike Lawler of New 153 00:08:25,600 --> 00:08:27,440 Speaker 3: York with us live from Capitol Hill.