1 00:00:02,759 --> 00:00:07,240 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,000 --> 00:00:09,879 Speaker 2: To our next guest who is joining us now live 3 00:00:09,880 --> 00:00:13,280 Speaker 2: from Capitol Hill, Republican Congressman Nicole Mallytakis of New York, 4 00:00:13,320 --> 00:00:15,520 Speaker 2: who Zach just mentioned, is with us now here on 5 00:00:15,560 --> 00:00:18,960 Speaker 2: Bloomberg TV and Radio. Congressman, welcome back to Balance of Power. 6 00:00:19,560 --> 00:00:22,360 Speaker 2: You've obviously made it back safely to Washington from mar 7 00:00:22,400 --> 00:00:25,360 Speaker 2: A Lago. I know you told Zach and have expressed 8 00:00:25,360 --> 00:00:27,600 Speaker 2: that really this is about getting to two hundred and 9 00:00:27,600 --> 00:00:30,400 Speaker 2: eighteen and whatever number it is on SALT that can 10 00:00:30,440 --> 00:00:33,519 Speaker 2: get the requisite votes. But is there a floor and 11 00:00:33,560 --> 00:00:36,520 Speaker 2: a ceiling, some kind of parameter around what that number 12 00:00:36,600 --> 00:00:39,800 Speaker 2: actually realistically could look like you could share with us. 13 00:00:40,200 --> 00:00:42,240 Speaker 3: Yeah. Look, I think your reporter got it just right. 14 00:00:42,720 --> 00:00:44,640 Speaker 3: The low end, it would be doubling it from ten 15 00:00:44,680 --> 00:00:46,839 Speaker 3: to twenty. On the high end, it would be one 16 00:00:46,920 --> 00:00:49,519 Speaker 3: hundred thousand for individual I quite frankly think that is 17 00:00:49,560 --> 00:00:51,400 Speaker 3: a little too high, in particular if we're looking at 18 00:00:51,400 --> 00:00:54,960 Speaker 3: target and middle class families, I think it could be 19 00:00:55,000 --> 00:00:57,920 Speaker 3: really more between the twenty and the sixty range. And 20 00:00:57,960 --> 00:01:00,920 Speaker 3: this is just me knowing all the information I know 21 00:01:01,000 --> 00:01:02,640 Speaker 3: as a member of Ways and Means and looking at 22 00:01:02,640 --> 00:01:05,840 Speaker 3: the big piece, big picture, the big puzzle, knowing all 23 00:01:05,840 --> 00:01:08,080 Speaker 3: the other pieces that need to fit into this equation. 24 00:01:08,920 --> 00:01:12,320 Speaker 3: I think the idea here is to get some type 25 00:01:12,360 --> 00:01:15,920 Speaker 3: of relief from the federal level for our constituents in 26 00:01:15,920 --> 00:01:18,880 Speaker 3: New York, New Jersey, California, because their mayors and governors, 27 00:01:18,920 --> 00:01:22,320 Speaker 3: quite frankly, are abusing them. They keep increasing their taxes. 28 00:01:22,520 --> 00:01:24,800 Speaker 3: The property tax levy in New York City goes up 29 00:01:24,880 --> 00:01:27,920 Speaker 3: year after year after year. It's the only municipality in 30 00:01:27,959 --> 00:01:31,080 Speaker 3: the state that does not have a two percent cap, 31 00:01:31,520 --> 00:01:35,160 Speaker 3: and that's unfortunate. This problem could obviously be resolved by 32 00:01:35,200 --> 00:01:37,360 Speaker 3: our mayor and governor if they were just to freeze 33 00:01:37,360 --> 00:01:40,679 Speaker 3: property taxes or lower the personal income tax rate, as 34 00:01:40,880 --> 00:01:45,360 Speaker 3: President Trump did in TCJA in twenty seventeen. But you 35 00:01:45,400 --> 00:01:47,760 Speaker 3: have to remember there's the other pieces. You have the 36 00:01:47,800 --> 00:01:50,320 Speaker 3: standard deduction that was doubled. You had the child tax 37 00:01:50,360 --> 00:01:53,480 Speaker 3: credit that was doubled. You had the Alternative Minimum tax 38 00:01:53,520 --> 00:01:56,800 Speaker 3: which went away completely for the middle class, which was 39 00:01:56,920 --> 00:01:59,920 Speaker 3: really crushing them and it actually prevented them from ben 40 00:02:00,160 --> 00:02:03,520 Speaker 3: fitting from salt. So we can't have the AMT come 41 00:02:03,560 --> 00:02:05,480 Speaker 3: back as part of this. I've made that very clear 42 00:02:05,760 --> 00:02:07,640 Speaker 3: and so we're working with all these different pieces, not 43 00:02:07,720 --> 00:02:09,680 Speaker 3: to mention the corporate stuff and the R and D 44 00:02:09,760 --> 00:02:12,800 Speaker 3: tax credit and bonus appreciation, so many other pieces that 45 00:02:12,880 --> 00:02:14,519 Speaker 3: are going to be part of this package. 46 00:02:16,320 --> 00:02:21,760 Speaker 1: Fascinating, Congresswoman that you're also exploring some more creative ideas here. 47 00:02:21,800 --> 00:02:23,840 Speaker 1: The reporting that we're reading coming out of the mar 48 00:02:23,880 --> 00:02:28,760 Speaker 1: A Lago conference quotes you to suggests maybe we increase 49 00:02:28,840 --> 00:02:33,359 Speaker 1: the deduction. If your state freezes or lowers the tax rate, 50 00:02:33,400 --> 00:02:36,720 Speaker 1: maybe the deduction goes even higher. Now, this is getting interesting, 51 00:02:36,720 --> 00:02:39,280 Speaker 1: and I wonder what the reaction that you got was 52 00:02:39,320 --> 00:02:42,040 Speaker 1: from your fellow lawmakers, from the President elect, and maybe 53 00:02:42,080 --> 00:02:44,160 Speaker 1: even from Democrats who you've floated this to. 54 00:02:45,440 --> 00:02:47,959 Speaker 3: Well, I think my colleagues actually really like that idea, 55 00:02:48,000 --> 00:02:50,480 Speaker 3: because part of the problem is we want to give relief. 56 00:02:50,560 --> 00:02:53,320 Speaker 3: But if we give taxpayers money back with one hand, 57 00:02:53,360 --> 00:02:55,520 Speaker 3: and the governor and mayor come along and just raise 58 00:02:55,560 --> 00:02:58,080 Speaker 3: taxes and take it with the other, that's a problem 59 00:02:58,120 --> 00:03:00,080 Speaker 3: and the taxpayer ends up losing at the end of 60 00:02:59,880 --> 00:03:02,840 Speaker 3: the day. And so how do we incentivize, how do 61 00:03:02,840 --> 00:03:05,720 Speaker 3: we change behavior, How do we hold the mayors and 62 00:03:05,760 --> 00:03:09,680 Speaker 3: the governors that are treating taxpayers like ATMs accountable, and 63 00:03:09,720 --> 00:03:11,920 Speaker 3: so we have to see if this can legally be done. 64 00:03:11,919 --> 00:03:14,800 Speaker 3: That's the big question. Can we let's say double this 65 00:03:14,919 --> 00:03:17,960 Speaker 3: deduction and then say maybe it goes up, it triples 66 00:03:18,040 --> 00:03:23,320 Speaker 3: or quadruples if your state takes action to freeze put 67 00:03:23,360 --> 00:03:25,640 Speaker 3: a cap on property taxes and freeze income taxes or 68 00:03:25,639 --> 00:03:28,400 Speaker 3: reduce them. You know, these are ideas that we're tossing around. 69 00:03:28,400 --> 00:03:31,280 Speaker 3: I've also said, maybe we want to limit the property 70 00:03:31,280 --> 00:03:36,600 Speaker 3: tax portion of this deduction for primary residences, right so 71 00:03:36,680 --> 00:03:40,080 Speaker 3: that could actually target the people that truly need it. 72 00:03:41,000 --> 00:03:43,920 Speaker 3: I think there's a lot of different ideas being floated around, 73 00:03:44,120 --> 00:03:46,200 Speaker 3: and as a member of the Ways and Means Committee, 74 00:03:46,240 --> 00:03:49,080 Speaker 3: we are obviously crunching the numbers, but we have to 75 00:03:49,160 --> 00:03:51,920 Speaker 3: wait until the Budgets Committee gives us the top line 76 00:03:52,000 --> 00:03:56,000 Speaker 3: and the reconciliation instructions to really figure out how to 77 00:03:56,000 --> 00:03:59,480 Speaker 3: put together this Rubik's cube. And that's you know, in 78 00:03:59,480 --> 00:04:01,120 Speaker 3: the meantime, would between the math and trying to figure 79 00:04:01,120 --> 00:04:03,760 Speaker 3: out what our options are and we'll go from there. 80 00:04:05,200 --> 00:04:08,720 Speaker 2: Well as we talk about the kind of structure of reconciliation. Congressman, 81 00:04:08,920 --> 00:04:11,440 Speaker 2: was there consensus built at mar Alago this week? Und 82 00:04:11,440 --> 00:04:13,360 Speaker 2: around the one bill or two idea or is this 83 00:04:13,520 --> 00:04:17,400 Speaker 2: still a live debate? What messaging were your you and 84 00:04:17,480 --> 00:04:19,760 Speaker 2: your colleagues delivering to the president elect? What was he 85 00:04:19,839 --> 00:04:20,520 Speaker 2: saying in return? 86 00:04:21,560 --> 00:04:24,840 Speaker 3: But I think the majority of our membership, certainly all 87 00:04:24,920 --> 00:04:27,159 Speaker 3: the members of the House Ways and Means Committee, want 88 00:04:27,240 --> 00:04:30,359 Speaker 3: to see one bill. And if you saw what happened 89 00:04:30,400 --> 00:04:34,000 Speaker 3: in the last week of session right last year, that's 90 00:04:34,080 --> 00:04:36,360 Speaker 3: the reason why we need one bill. It's hard to 91 00:04:36,440 --> 00:04:40,160 Speaker 3: build consensus when you have such a slim majority. And 92 00:04:40,600 --> 00:04:43,240 Speaker 3: the last time they did two reconciliation bills, it was 93 00:04:43,320 --> 00:04:45,960 Speaker 3: under Gingridge in nineteen ninety seven and he had a 94 00:04:46,120 --> 00:04:50,000 Speaker 3: much larger majority. You have to remember TCJA there were 95 00:04:50,080 --> 00:04:51,680 Speaker 3: thirteen no Republican votes. 96 00:04:51,680 --> 00:04:52,679 Speaker 1: We don't have that luxury. 97 00:04:52,800 --> 00:04:54,720 Speaker 3: We have one. We have a majority of one. So 98 00:04:54,839 --> 00:04:56,800 Speaker 3: we have to build consensus, and I think the best 99 00:04:56,800 --> 00:04:59,040 Speaker 3: way to do that is to put the different pieces 100 00:04:59,080 --> 00:05:03,120 Speaker 3: that members care about together, the border security measures, the 101 00:05:03,600 --> 00:05:07,840 Speaker 3: energy production measures. Those will satisfy some of the border states, 102 00:05:07,880 --> 00:05:10,520 Speaker 3: the energy producing states, and you have the salt states 103 00:05:10,600 --> 00:05:13,599 Speaker 3: get something with our salt relief. And overall we support 104 00:05:13,920 --> 00:05:16,920 Speaker 3: as a conference, we support tax cuts, we support border security, 105 00:05:16,960 --> 00:05:20,800 Speaker 3: we support American energy dominance. So let's just drill down 106 00:05:21,040 --> 00:05:23,840 Speaker 3: and negotiate with each other on those finer details of 107 00:05:23,920 --> 00:05:26,160 Speaker 3: each of these and get one bill passed so we 108 00:05:26,240 --> 00:05:29,240 Speaker 3: get to the two eighteen. If you kick tax to 109 00:05:29,360 --> 00:05:31,440 Speaker 3: the end of the year in a separate package, I 110 00:05:31,880 --> 00:05:35,200 Speaker 3: very much fear that it will expire and America will 111 00:05:35,200 --> 00:05:38,480 Speaker 3: see four trillion dollars in tax increases. We cannot afford 112 00:05:38,560 --> 00:05:41,240 Speaker 3: to allow that to happen. It's too risky to do 113 00:05:41,320 --> 00:05:43,040 Speaker 3: it later on in the year and not upfront with 114 00:05:43,120 --> 00:05:43,960 Speaker 3: this first package. 115 00:05:45,080 --> 00:05:47,320 Speaker 1: Well, congress Woman, that's as long as we've ever gone 116 00:05:47,320 --> 00:05:49,719 Speaker 1: in a conversation. I think before you mentioned the border, 117 00:05:49,800 --> 00:05:52,680 Speaker 1: So let's get to it. There is a thought out 118 00:05:52,720 --> 00:05:55,599 Speaker 1: there on Grover Norquist suggested it a little bit earlier 119 00:05:55,680 --> 00:05:58,640 Speaker 1: in the broadcast that Donald Trump's plans to issue some 120 00:05:59,200 --> 00:06:02,760 Speaker 1: one hundred executive orders, many of them aimed at the border, 121 00:06:02,880 --> 00:06:05,880 Speaker 1: will give you breathing room to actually craft a single 122 00:06:05,920 --> 00:06:08,320 Speaker 1: bill that would include border security and the tax issues 123 00:06:08,360 --> 00:06:10,600 Speaker 1: that we're talking about. Is that the way you're looking 124 00:06:10,680 --> 00:06:12,800 Speaker 1: at this, Let the President handle the border out of 125 00:06:12,880 --> 00:06:15,480 Speaker 1: the gate. We'll back him up with legislation when it's 126 00:06:15,520 --> 00:06:18,960 Speaker 1: done being written here and our debate concludes on the Hill. 127 00:06:20,279 --> 00:06:22,680 Speaker 3: Yeah, well, you know, the Senate has made the argument 128 00:06:22,800 --> 00:06:25,000 Speaker 3: that we need to do too, because we want to 129 00:06:25,040 --> 00:06:28,000 Speaker 3: do the border wins early on. There's a way we 130 00:06:28,080 --> 00:06:30,640 Speaker 3: can achieve that. First, as you say, the President can 131 00:06:30,760 --> 00:06:33,000 Speaker 3: issue the executive orders, and he will do that to 132 00:06:33,160 --> 00:06:36,000 Speaker 3: undo the policies of the Biden administration. But we've also 133 00:06:36,200 --> 00:06:38,680 Speaker 3: passed legislation. Just the other day, we passed a Lake 134 00:06:38,760 --> 00:06:41,640 Speaker 3: in Riley Act, which would require those who commit certain 135 00:06:41,680 --> 00:06:45,920 Speaker 3: crimes to be detained and deported. And we're working through 136 00:06:46,080 --> 00:06:49,520 Speaker 3: pieces of legislation that can get bipartisan support and the 137 00:06:49,560 --> 00:06:52,040 Speaker 3: sixty votes needed in the Senate to get that out 138 00:06:52,080 --> 00:06:53,840 Speaker 3: the door and put it on the president's desk for 139 00:06:53,920 --> 00:06:57,120 Speaker 3: when he arrives next week. So I think we can 140 00:06:57,320 --> 00:07:00,800 Speaker 3: score those border victories early and then really when it 141 00:07:00,920 --> 00:07:05,680 Speaker 3: comes to the reconciliation, it has to have a fiscal implication, right, 142 00:07:06,000 --> 00:07:09,640 Speaker 3: So we can't necessarily do Lake and Riley Act in reconciliation. 143 00:07:10,320 --> 00:07:14,520 Speaker 3: But we can increase border patrol, we can increase technology, 144 00:07:14,560 --> 00:07:17,680 Speaker 3: we can put some things in there that would help 145 00:07:17,800 --> 00:07:21,360 Speaker 3: with the deportation of criminals, and maybe adding judges to 146 00:07:21,520 --> 00:07:25,560 Speaker 3: hear these asylum cases. Faster, so I think we can 147 00:07:25,640 --> 00:07:28,680 Speaker 3: achieve both things here. And the bottom line is a 148 00:07:28,680 --> 00:07:30,280 Speaker 3: president really just wants to get it done. I don't 149 00:07:30,280 --> 00:07:31,960 Speaker 3: think he cares at the end of the day on 150 00:07:32,000 --> 00:07:34,080 Speaker 3: whether it's one or two. I think he just wants 151 00:07:34,120 --> 00:07:37,160 Speaker 3: to get the policies done that will get America back 152 00:07:37,240 --> 00:07:39,640 Speaker 3: on track. We've made the case that it should be 153 00:07:39,680 --> 00:07:41,520 Speaker 3: one bill, and I think he sees the merit of 154 00:07:41,600 --> 00:07:44,000 Speaker 3: one bill. As I said, considering what happened at the 155 00:07:44,080 --> 00:07:46,920 Speaker 3: end of last year where we had so much back 156 00:07:46,960 --> 00:07:50,680 Speaker 3: and forth within our conference, well, and part of. 157 00:07:50,840 --> 00:07:52,960 Speaker 2: That saga at the end of last year Congressman was 158 00:07:52,960 --> 00:07:55,560 Speaker 2: a question over whether the debt ceiling should be lifted 159 00:07:55,640 --> 00:07:58,520 Speaker 2: or abolished entirely before Trump takes office. How was that 160 00:07:58,680 --> 00:08:02,720 Speaker 2: interplaying in the conversations this weekend. When is that going 161 00:08:02,760 --> 00:08:05,320 Speaker 2: to happen, and what legislation and what could potentially be 162 00:08:05,440 --> 00:08:07,440 Speaker 2: the trade off is we've seen reporting that it might 163 00:08:07,480 --> 00:08:10,360 Speaker 2: be debt sealing in exchange for wildfire relief in California. 164 00:08:11,840 --> 00:08:14,720 Speaker 3: Well, you know, interestingly enough, a lot of members believe 165 00:08:14,840 --> 00:08:17,400 Speaker 3: that the debt limit piece of this is probably the 166 00:08:17,480 --> 00:08:20,240 Speaker 3: most complicated because that's where you see the most friction 167 00:08:20,440 --> 00:08:23,880 Speaker 3: Within our conference, there are some members who never voted 168 00:08:23,920 --> 00:08:26,400 Speaker 3: to increase the debt limit, and we have to understand 169 00:08:26,480 --> 00:08:28,480 Speaker 3: that the debt limit is money that's already been spent 170 00:08:28,600 --> 00:08:30,760 Speaker 3: that we're paying the bill. We don't want to prevent 171 00:08:30,800 --> 00:08:33,120 Speaker 3: a default. So the responsible thing to do is to 172 00:08:33,240 --> 00:08:36,400 Speaker 3: address that debt limit and do it before June. I 173 00:08:36,480 --> 00:08:39,000 Speaker 3: think we're just going to look for any vehicle where 174 00:08:39,040 --> 00:08:41,880 Speaker 3: we can get it. It could be with disaster aid, 175 00:08:42,000 --> 00:08:46,120 Speaker 3: it could be within the reconciliation, it could be within 176 00:08:46,280 --> 00:08:50,160 Speaker 3: the government funding mechanism, you know, the federal budget. So 177 00:08:50,280 --> 00:08:53,480 Speaker 3: we'll see, we'll see what vehicle where we can get it. 178 00:08:53,559 --> 00:08:56,040 Speaker 3: But it does need to be addressed before June. The 179 00:08:56,160 --> 00:08:58,240 Speaker 3: sooner we can do it, the better. Let's get it 180 00:08:58,280 --> 00:09:00,360 Speaker 3: out of the way, since it's the most contentious peace 181 00:09:00,679 --> 00:09:03,520 Speaker 3: and then get to the other real policy issues that 182 00:09:03,600 --> 00:09:06,240 Speaker 3: the Americans people have been waiting for. Right They want 183 00:09:06,280 --> 00:09:07,959 Speaker 3: to get this economy back on track. They want to 184 00:09:07,960 --> 00:09:10,760 Speaker 3: see the tax cuts extended and enhanced. They want to 185 00:09:10,840 --> 00:09:14,480 Speaker 3: see our border secure and people who are here legally 186 00:09:14,520 --> 00:09:17,280 Speaker 3: committing crimes deported, and they want to see us lower 187 00:09:17,360 --> 00:09:20,360 Speaker 3: those energy costs and produce more energy domestically. 188 00:09:22,640 --> 00:09:25,240 Speaker 1: Congresswoman with regard to the border. While you're with us 189 00:09:25,280 --> 00:09:27,960 Speaker 1: here in our remaining couple of moments, a warning from 190 00:09:28,160 --> 00:09:31,880 Speaker 1: Immigrations and custom Enforcement. Without emergency funding, they could be 191 00:09:31,960 --> 00:09:36,040 Speaker 1: forced to release tens of thousands of immigrants, including some 192 00:09:36,240 --> 00:09:38,520 Speaker 1: deemed to be public safety threats. We've talked a lot 193 00:09:38,559 --> 00:09:41,240 Speaker 1: about the number of migrants being held in hotels, for instance, 194 00:09:41,559 --> 00:09:44,320 Speaker 1: in places like New York City. Are you in touch 195 00:09:44,480 --> 00:09:47,320 Speaker 1: with ICE and with border patrol on this matter? Would 196 00:09:47,440 --> 00:09:51,960 Speaker 1: Congress be there to prevent the release of people dangerous 197 00:09:51,960 --> 00:09:52,640 Speaker 1: to Americans? 198 00:09:54,080 --> 00:09:57,120 Speaker 3: Well, I have not heard about this. If there's an 199 00:09:57,160 --> 00:09:59,599 Speaker 3: issue with the funding, because the funding is there for 200 00:09:59,640 --> 00:10:02,120 Speaker 3: the next uh you know, to the end of March. 201 00:10:02,960 --> 00:10:04,720 Speaker 3: I think what they need to do is actually find 202 00:10:04,720 --> 00:10:06,800 Speaker 3: a way to shift the funding so instead of housing 203 00:10:06,880 --> 00:10:11,480 Speaker 3: individuals uh and transporting individuals into America's cities, we're actually 204 00:10:11,840 --> 00:10:15,600 Speaker 3: deporting them and repatriating them. Uh. And I and if 205 00:10:15,640 --> 00:10:19,600 Speaker 3: there are committing crimes and they don't have legitimate asylum claims. 206 00:10:20,240 --> 00:10:23,160 Speaker 3: So I think that we met with Tom Hollman about this. 207 00:10:23,320 --> 00:10:26,400 Speaker 3: I mean, particularly New York City has been destroyed, uh, 208 00:10:26,679 --> 00:10:30,880 Speaker 3: you know, by havoc being waked by illegal immigrants, gang members, 209 00:10:31,000 --> 00:10:35,040 Speaker 3: drug traffickers, people who are bad, dangerous people. They've they've 210 00:10:35,040 --> 00:10:38,599 Speaker 3: committed murder, they've committed robberies, they've committed all sorts of 211 00:10:38,679 --> 00:10:41,079 Speaker 3: crimes in our city, and we need to get them 212 00:10:41,160 --> 00:10:43,679 Speaker 3: out of our city and our country. And so the 213 00:10:43,800 --> 00:10:48,080 Speaker 3: question really has been how does the incoming administration legally 214 00:10:48,480 --> 00:10:49,959 Speaker 3: Is there a way for them to shift some of 215 00:10:50,000 --> 00:10:52,559 Speaker 3: the funny Monday money but has actually been used to 216 00:10:53,040 --> 00:10:56,400 Speaker 3: provide incentives and house these individuals and give them h 217 00:10:56,640 --> 00:11:00,760 Speaker 3: free services to actually remove them from our country. And 218 00:11:01,240 --> 00:11:03,120 Speaker 3: that's I think what the incoming administration is gonna have 219 00:11:03,160 --> 00:11:04,960 Speaker 3: to address when they get there next week. 220 00:11:06,360 --> 00:11:09,160 Speaker 1: From New York's eleventh District, Nicole malli Otaka is great 221 00:11:09,160 --> 00:11:10,959 Speaker 1: to see you, Congresswoman. We thank you