WEBVTT - Senator Ted Cruz Talks Tax Bill, Los Angeles Protests

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

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<v Speaker 2>It's great to be joined again by the Republican Senator

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<v Speaker 2>from Texas, Ted Cruz, who chairs the Commerce Committee. Senator,

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<v Speaker 2>welcome back.

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<v Speaker 3>It's good to see you.

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<v Speaker 2>A busy day when it comes to the reconciliation process

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<v Speaker 2>as we track the parliamentarian in your chamber, a rules

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<v Speaker 2>committee in the House. I'm just wondering, broadly, what's the

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<v Speaker 2>first thing you take out.

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<v Speaker 3>Of this bill.

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<v Speaker 2>Is it the new cap on salt or are you

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<v Speaker 2>more focused on enhancing what is in the bill, like

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<v Speaker 2>making business tax cuts permanent.

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<v Speaker 1>Well, listen, I think the House did a good job

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<v Speaker 1>starting this process.

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<v Speaker 3>We're going to get this bill accomplished.

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<v Speaker 1>We're going to get it passed because it's the main

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<v Speaker 1>vehicle to deliver on the promises we made to the

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<v Speaker 1>American people in November, and so it's the main vehicle

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<v Speaker 1>to deliver the funding to secure the border. It's the

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<v Speaker 1>main vehicle to rebuild our military. It's the main vehicle

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<v Speaker 1>to extend the twenty seventeen tax cuts and make them

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<v Speaker 1>bigger and bolder, and that's critical for economic growth and jobs.

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<v Speaker 1>The process of the back and forth is ongoing, and

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<v Speaker 1>so in the Senate right now, Each committee right is

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<v Speaker 1>releasing its language and the Senate is going to take

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<v Speaker 1>some different approaches than the House did, and ultimately there

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<v Speaker 1>will be a conference and the two will come together,

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<v Speaker 1>and I think through that process the bill will get

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<v Speaker 1>better well.

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<v Speaker 4>And certainly the Commerce Committee has made some changes to

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<v Speaker 4>the House legislation, including in the bill you released last week,

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<v Speaker 4>a tweak to the moratorium on state AI laws, tying

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<v Speaker 4>it to the federal broadband expansion program. Mister Chairman, are

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<v Speaker 4>you confident that can get through the Senate? Frankly, has

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<v Speaker 4>the parliamentarian suggested to you that will pass muster when

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<v Speaker 4>it comes to the.

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<v Speaker 1>Bird rule, Well, we have yet to argue this before

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<v Speaker 1>the Parliamentary and I anticipate that we will do so

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<v Speaker 1>this week, either this week or next week, and it

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<v Speaker 1>certainly will be challenged. That provision will be challenged in

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<v Speaker 1>front of the Parliamentary and I don't know how she'll rule.

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<v Speaker 3>Listen, I think it is very sound policy.

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<v Speaker 1>If you look at just a few weeks ago, I

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<v Speaker 1>chaired a hearing on AI, and I think AI is

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<v Speaker 1>transformational technology that is going to have a massive impact

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<v Speaker 1>on productivity and jobs across the country, and I think

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<v Speaker 1>it is critical that America win the race to AI,

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<v Speaker 1>that we not lose to China. And the hearing I chared,

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<v Speaker 1>we had witnesses from across the industry testifying. Everyone agreed

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<v Speaker 1>there is a real danger of state legislation and in

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<v Speaker 1>particular states like California adopting a heavy handed nanny state approach,

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<v Speaker 1>much like the European Union, which would cripple America's leadership

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<v Speaker 1>at AI. And so I think it is sound policy.

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<v Speaker 1>Whether it gets enacted on reconciliation or not, it is

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<v Speaker 1>a question that's still being argued.

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<v Speaker 2>You've got the FAA, of course in your purview, Senator,

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<v Speaker 2>and it's an agency that we've all, as Americans, talked

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<v Speaker 2>about a lot recently. This is something that touches all

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<v Speaker 2>of our viewers and listeners.

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<v Speaker 3>You've got a little.

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<v Speaker 2>Over twelve billion dollars here for enhancements in improvements. Is

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<v Speaker 2>that enough money to replace the nation's air traffic control system?

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<v Speaker 1>Well, twelve and a half billion dollars is a major

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<v Speaker 1>investment in modernizing air traffic control. There's no doubt we

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<v Speaker 1>need to do so. It's something I've been fighting for

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<v Speaker 1>for over a decade. In the Senate that if you

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<v Speaker 1>look right now at our air traffic control system, it's

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<v Speaker 1>outdated equipment that they use radars from the nineteen fifties.

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<v Speaker 1>They use little slips of paper and computers that have

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<v Speaker 1>floppy discs. My guess is a lot of your viewers

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<v Speaker 1>don't even remember what floppy discs were, and yet that's

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<v Speaker 1>what we rely on to keep our flying public safe.

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<v Speaker 3>That's unacceptable.

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<v Speaker 1>We need to embrace modern day technology and GPS. They're

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<v Speaker 1>enormous upsides, and so twelve and a half billion dollars

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<v Speaker 1>is a major investment. I also think we need to

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<v Speaker 1>need reforms to improve the system. That's something that's going

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<v Speaker 1>to be a real priority for the Commerce Committee.

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<v Speaker 2>I'm saving my floppies in case they become collectors items someday. Senator,

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<v Speaker 2>I wonder if you still feel like starlink is part

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<v Speaker 2>of this solution, and if you've had a chance to

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<v Speaker 2>talk with Elon Musk about it since his apparent breakup

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<v Speaker 2>with the president.

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<v Speaker 1>Oh look, I think starlink is amazing technology. And my

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<v Speaker 1>view is that technology decisions throughout the government ought to

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<v Speaker 1>be based on the merits you look at. For example,

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<v Speaker 1>the bad program, which which Congress authorized forty two billion

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<v Speaker 1>dollars to provide connections to high quality broadband, and the

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<v Speaker 1>entire BIDE administration they didn't connect even a single home

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<v Speaker 1>in America. It was an absolute boondoggle and failure. The

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<v Speaker 1>President President Trump's administration is rightly focused on using that

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<v Speaker 1>money to actually have connectivity. One of the reasons the

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<v Speaker 1>BIDE administration didn't connect anyone is they decided they hated Elon, Musket,

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<v Speaker 1>hated starlink, and so we're not going to consider that

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<v Speaker 1>as an option. And the reality when you're talking about

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<v Speaker 1>broadband is the right technology depends upon the right location.

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<v Speaker 1>So in a dense herbit environment, fiber makes a lot

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<v Speaker 1>of sense. If you're out in the mountains or the

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<v Speaker 1>middle of the wilderness with very sparse population, satellite or

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<v Speaker 1>or less expensive infrastructure solutions make a lot more sense.

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<v Speaker 1>And so I think the government ought to make those

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<v Speaker 1>decisions based on the technology that best meets the need.

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<v Speaker 4>Mister Chairman, I'd like to ask you about words we

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<v Speaker 4>heard from another Senate Chairman, Lindsay Graham of the Budget Committee,

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<v Speaker 4>who suggested in an interview today that this package may

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<v Speaker 4>end up needing to be broken up in different parts

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<v Speaker 4>after all, which of course was the original plan of

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<v Speaker 4>the Majority Leader John Thune. Is it acceptable to you?

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<v Speaker 4>Do you think it would be acceptable for the President

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<v Speaker 4>to not get his entire legislative agenda done in one

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<v Speaker 4>single beautiful bill.

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<v Speaker 3>Listen.

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<v Speaker 1>I think we're going to get it done, and it

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<v Speaker 1>early on I advocated for doing it in two bills.

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<v Speaker 1>I would have been certainly supportive of that. But we're

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<v Speaker 1>going to get this bill accomplished. And the reason is,

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<v Speaker 1>I think the stakes of failure are too high. If

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<v Speaker 1>Congress does not act by December thirty. First, there's an

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<v Speaker 1>automatic four trillion dollar tax increase that will hurt every

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<v Speaker 1>working family in America, that will hurt every small business

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<v Speaker 1>in America. And that's an outcome that the Democrats are

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<v Speaker 1>quite happy with. But there's not a single Republican in

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<v Speaker 1>the House or Senate who wants that to happen.

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<v Speaker 3>So is it going to be complicated?

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<v Speaker 1>Yes, are there a million trade offs, yets, But we're

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<v Speaker 1>going to get it done. And you know, look, I'll

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<v Speaker 1>reflect back to twenty seventeen, the last big tax cut

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<v Speaker 1>we passed under President Trump. I spent hundreds of hours

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<v Speaker 1>in twenty seventeen negotiating provisions in that bill.

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<v Speaker 3>And if you look at how that bill came.

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<v Speaker 1>To pass, the House passed a good bill, it went

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<v Speaker 1>to the Senate, the Senate made it substantially better, and

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<v Speaker 1>then we went to conference committee and it got better

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<v Speaker 1>as well. My hope is the same thing happens this time.

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<v Speaker 1>I'd like to see the Senate be bigger and bolder.

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<v Speaker 1>I'd like to see us have more fiscal responsibility and

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<v Speaker 1>cut unnecessary waste and fraud and abuse. And so that's

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<v Speaker 1>certainly what I'm urging my colleagues in the Senate to do.

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<v Speaker 3>Well.

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<v Speaker 4>And you'd like to see Trump savings accounts for newborn's

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<v Speaker 4>become a reality. That, of course was your brainchild, Senator.

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<v Speaker 4>The law stipulates the baby must be a United States

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<v Speaker 4>citizen at birth, and I wonder what assumptions you are

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<v Speaker 4>making about the status of birthright citizenship here.

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<v Speaker 1>Well, look, this particular provision doesn't resolve that. It just

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<v Speaker 1>relies on US law, and so right now, US law

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<v Speaker 1>confers citizenship on birth. I think birthright citizenship is a

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<v Speaker 1>policy that doesn't make sense because it encourages illegal immigration.

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<v Speaker 1>So I've long advocated for changing that policy. But this

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<v Speaker 1>bill is an economic bill, so it's not purporting to

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<v Speaker 1>resolve immigration questions. What this bill is doing and I'm

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<v Speaker 1>proud to have introduced it and to be fighting for it.

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<v Speaker 1>It's in the bill, it's going to be enacted. This

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<v Speaker 1>will create an investment account for every child in America

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<v Speaker 1>and newborn children.

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<v Speaker 3>Newborn children born.

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<v Speaker 1>This year would receive one thousand dollars to see that account.

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<v Speaker 1>And then each year, parents and family and employers would

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<v Speaker 1>be able to contribute up to five thousand a year

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<v Speaker 1>in a tax advantaged account. That money would grow and

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<v Speaker 1>it would be invested in the stock market in the

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<v Speaker 1>s and P. Five hundred, and if you assume, let's

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<v Speaker 1>assume a little girl little boy born this year has

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<v Speaker 1>one thousand dollars and then has five thousand dollars invested

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<v Speaker 1>each year. If you assume historic rates of growth of

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<v Speaker 1>the s and P. Five hundred, that little baby, by

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<v Speaker 1>the time here she turns eighteen would have one hundred

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<v Speaker 1>and seventy thousand dollars in their account. If they kept

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<v Speaker 1>on investing five thousand a year, by the time they

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<v Speaker 1>turned thirty five, they would have seven hundred thousand dollars

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<v Speaker 1>in that account. And that's for every child in America.

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<v Speaker 1>That is a really powerful way to enable every child

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<v Speaker 1>to have the benefits of compound growth.

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<v Speaker 2>Senator, I want to go to la with you for

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<v Speaker 2>a moment here, because i know you're very sensitive to

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<v Speaker 2>constitutional law, and I'm sure you have very strong feelings

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<v Speaker 2>about some of the things that we've seen on the

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<v Speaker 2>streets of America's second largest city over the past four days.

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<v Speaker 2>We received a statement from the Chief of Police LAPD

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<v Speaker 2>Chief Jim McDonnell responding to the possible deployment of Marines,

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<v Speaker 2>which now, of course, has happened. We've got seven hundred

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<v Speaker 2>deployed from Camp Pendleton. He starts by writing, the LAPD

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<v Speaker 2>has not received any formal notification the Marines will be arriving. However,

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<v Speaker 2>their arrival of federal military forces in Los Angeles, absent

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<v Speaker 2>clear coordination, presents a significant logistical and operational challenge for

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<v Speaker 2>those of us charged with safeguarding this city. Is what

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<v Speaker 2>the President is doing right now fair to the police

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<v Speaker 2>in Los Angeles.

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<v Speaker 1>Well, listen, what is not fair to the police in

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<v Speaker 1>Los Angeles is the actions of Karen Bass, the Democrat mayor,

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<v Speaker 1>and the actions of Gavin Newsom, the Democrat governor. What

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<v Speaker 1>we're seeing in La is horrific. We're seeing violent riots

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<v Speaker 1>that are breaking out and spilling on day after day

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<v Speaker 1>after day.

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<v Speaker 3>We're seeing police cars firebombed.

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<v Speaker 1>We're seeing protesters protesting against the enforcement of federal immigration law.

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<v Speaker 3>And I got to say, it is a bizarre.

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<v Speaker 1>Image to see protesters who say, do not enforce immigration law.

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<v Speaker 1>We want to be here illegally. To see them waving

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<v Speaker 1>Mexican flags for the proposition, don't you dare back dare

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<v Speaker 1>send us back to the country whose flag we're waving.

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<v Speaker 3>That makes no sense.

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<v Speaker 1>And whether the troops are deployed though, well, look, the

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<v Speaker 1>problem we've seen in places like La is the cops.

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<v Speaker 3>And I think I.

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<v Speaker 1>Support law enforcement and the police, but unfortunately today's Democrats

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<v Speaker 1>do not. When they are given a choice between siding

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<v Speaker 1>with illegal immigrants or Venezuelan and gang members or violent criminals,

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<v Speaker 1>or siding with the police, Today's Democrats do what Gavin

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<v Speaker 1>Newsom does, which is he's suing the Trump administration saying

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<v Speaker 1>do not enforce law and order, do not protect our citizens.

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<v Speaker 3>I gotta say that's backwards.

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<v Speaker 1>I think we ought to be keeping our cities safe

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<v Speaker 1>and that should be regardless of the circumstance.

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<v Speaker 3>Answers. We should be against violence, but should.

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<v Speaker 4>We be against states rights? Senator? Is that not something

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<v Speaker 4>you stand for? Does this not risk setting a dangerous

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<v Speaker 4>president of the federal government coming in and overtaking the

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<v Speaker 4>will of an individual state.

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<v Speaker 1>You know what, there's a long tradition when you have

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<v Speaker 1>local politicians who are lawless, who are defying federal law.

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<v Speaker 1>The federal government has the authority and has an obligation

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<v Speaker 1>to enforce federal law. Look, you saw when you had

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<v Speaker 1>Southern Democrat governors in the civil rights movement resist integrating schools,

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<v Speaker 1>saying we are not going to allow African American children

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<v Speaker 1>in our schools. You saw President Dwight D. Eisenhower send

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<v Speaker 1>in the National Guard and say you are going to

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<v Speaker 1>follow federal law and you don't have the right to

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<v Speaker 1>defy federal law.

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<v Speaker 3>Well, the new.

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<v Speaker 1>The new massive resistance Democrats are now fighting against federal

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<v Speaker 1>immigration law. The federal government has a responsibility to keep

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<v Speaker 1>the American people safe. And I got to say, we're

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<v Speaker 1>seeing a replay of what happened during the Black Lives

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<v Speaker 1>Matter and Antifa riots where Democrat politicians prevented the police

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<v Speaker 1>from protecting their citizens and allowed people to be murdered,

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<v Speaker 1>allowed stores to be looted, and allowed police to be assaulted.

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<v Speaker 1>And so I'm glad President Trump is stepping forward saying

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<v Speaker 1>we're going to keep you safe from violence on the streets.

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<v Speaker 4>Well, when we consider what he's keeping Americans sefe from Senator,

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<v Speaker 4>there's a difference between resistance and insurrection. And the President

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<v Speaker 4>today did not rule out invoking the Insurrection Act.

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<v Speaker 2>Should he?

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<v Speaker 1>Well, look, that'll be a question that will depend on

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<v Speaker 1>the circumstances. But I got to tell you the problem

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<v Speaker 1>is made worse when you have Democrat mayors and governors

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<v Speaker 1>that refuse to enforce the law. And that's what we're

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<v Speaker 1>seeing in California. If you break the law, if you

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<v Speaker 1>commit acts of violence, you should be arrested. And these

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<v Speaker 1>are lawless protests in support of further lawlessness.

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<v Speaker 3>Why are they mad?

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<v Speaker 1>They're mad because President Trump is deporting illegal immigrants, because

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<v Speaker 1>he's deporting Venezuelan gang members and murderers and child rapists.

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<v Speaker 1>And I don't get the Democrats calculus when they look

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<v Speaker 1>at that and say, you know what America needs. We

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<v Speaker 1>need more MS thirteen members, we need more human traffickers

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<v Speaker 1>and criminals. I think the vast majority of Americans don't

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<v Speaker 1>agree with that.

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<v Speaker 4>All right, Senator, we appreciate your time. Republican Senator Ted

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<v Speaker 4>Cruz of Texas, of course, the chair of the Senate

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<v Speaker 4>Commerce Committee, here with us on Bloomberg TV and radio