Bloomberg Audio Studios, podcasts, Radio News House speaker Mike Johnson joins us. Now, thank you so much for your time this morning. We'd love to begin there. Have you received a call back from mister Musk.
Yes, Look, Elon's a good friend. We texted late last night. We're going to talk this morning. I just want to make sure that he understands what I think everybody on Capitol Hill understands. This is not a spending bill, my friends. This is a budget reconciliation bill. And what we're doing here is delivering the America First agenda. This is all the President's priorities and all the priorities of the Republican Party. Everything we promise the American people. That is what we
are delivering with this piece of legislation. And the reason we're using the reconciliation process is because that is the only way to get around the sixty vote threshold in the Senate.
Everybody probably recognizes.
Chuck Schumer and the Democrats are in no mood and not going to be helpful in delivering President Trump's agenda for the people.
We have to do it this way.
We can do it with fifty one votes in the Senate only, and that's the urgency of the hour, and we have to do it quickly for all the reasons we can.
Discuss this morning.
So did you get a sentence from Elon Muster in those tex exchange that he was going to stop his insistence on this bill that he thinks needs to be killed.
He seems pretty dug in right now, and I can't quite understand the motivation behind it. But I would tell you that what we're delivering in this bill is not only historic tax cuts, but historic savings as well.
He seems to miss that.
I mean, the projection is that this legislation is going to save us one point six trillion dollars with a t. Now, there's never been a piece of legislation ever delivered in the history of government on the face of the earth that saves that much money. So this is truly historic. Now, is it enough? No, because all three of us understand. But we have a large federal debt. We've had deficits for some time, and it's a serious concern. In fact,
it's the number one threat to our national security. But this is the biggest step using that problem that Congress has ever delivered, and we must do it, and I will hasten to say this. I've told Elon and tell everyone this is the first of a series of steps that we will take to bring that debt under control. But you can't turn.
It on a dime.
It took us decades to get into this situation, so we have to we have to do it incrementally, and this is a huge step forward in that endeavor.
What's the driving force behind Elon Musk's problems with this bill? Has he asked you directly to potentially keep the electric vehicle benefits we saw under the Inflation Reduction Act of the Biden error into the bill.
Look, I'll let everybody draw their own conclusions about Elon's motivations.
I'll tell you that.
I mean, obviously, the ev mandate going away is I'm sure a concern for you know, the leader of.
Tesla and other things as well.
But I think there's a lot of confusion out there about what the legislation is. There's certainly a lot of misinformation. I mean, the Democrats have been engaged in this effort, this strategy for many, many weeks and many months. But remember it took us over a year to develop this piece of legislation. We have eleven different committees in the House, all the areas of jurisdiction that worked on the reconciliation effort to reconcile the budget. And what we're going to
deliver her again is historic tax relief and savings. At the same time, if we do not get this bill done, the tax cuts of twenty seventeen, the tax cuts and JOBZAC will expire at the end of December. Every American will receive the largest tax increase in US history, all at once.
It would be.
Devastating for the economy. So we've addressed that here. We've made the tax cuts permanent, and we've infused.
It with a pro growth.
Series of policies that will get the economy going again. It will be jet fueled to the economy because we're going to reduce wasteful spending. We're going to reduce taxes, and we're going to reduce regulations as well.
And that is what will allow.
Job creators and the energy sector and everyone else to get going again.
And your version of the bill, of course, increases the salt deduction cap, which yesterday Senatement Jardy leader John Thune said, quote, there isn't a single Republican senator who cares much about the salt issue. You and I both know you cannot pass this bill without increasing the salt deduction cap. How do you envision that deduction changing given the fact that no senator Republican senator wants.
A vote for this, Well, I appreciate that they don't.
They all come from red states, right as do I, and we have very different perspective on salt than our colleagues in the Blue states, for example, in California and New York, in New Jersey.
But that is the reality in the House.
Remembering, and they have to remember my senate friends and colleagues have to remember.
I have to deliver two.
Hundred and seventeen votes to get that thing across the line if they modify it. So I had lunch with my senate friends Tuesday, last two weeks ago, before we passed the bill in the House on that Thursday, and I encourage them to modify it as little as possible, right because I gave a metaphor, I said, my friends, I am crossing the Grand Canyon on a piece of dental flaws.
Okay, olibrium that we reached here.
It took quite a bit of time to get to where we are, and you can't load me up on either side. And if you go and slash the salt cap that we negotiated carefully for over a year, it's going to make it very difficult for me to deliver the necessary number of votes. Remembering I can only lose three in the House. They can only lose three in the Senate to get this done.
So we're all working together.
It's one team, House and Senate together, united in this effort. They understand that, and I think they understand certainly Leader Thun and the leaders over there understand the complexity of what we're having to deal with here, Speaker.
Johnson, just to sort of put a bow on it, So forty thousands still likely to remain the cap.
That's what we negotiated here, and I'm certainly trying to hold to that number.
And look, we've paid for it.
I think we've got it worked out and all the math and the legislation, and I think it's something that I know they're not in love with it, but I certainly hope they'll tolerated so we can maintain our vote tally over here.
Speaker Johnson, as you walk that piece of dental floss over the Grand Canyon. There is this question of how the bill is currently being used, whether it's for budget negotiations and budget reconciliation over the next decade, or whether
it's to negotiate trade agreements. There is two point eight trillion dollars of revenue that is being penciled in by the Congressional Budget Office from tariffs that might be used as a negotiating tactic might not be How do you understand the way that tariffs are looked at as part of this budget balancing Act.
Well, it hasn't been included in the calculations, and that's because groups like the CBO, the Congressional Budget Office, as you noted, won't give us any credit for that.
But it is very real.
I mean, the revenue is real, and it is realized, and it's not included in the calculation that we've made or they've made. But obviously it's a big factor.
We believe that we're.
Going to bring about a rory and economy again. And it's not based on conjecture or ground list optimism. I mean, this is based on the history. We did this in twenty seventeen after the first two years of the Trump administration when we passed the tax cuts and jobs ac We reduce taxes, we reduce regulations, and the economy is roaring. I mean, you all remember before COVID, we had the greatest economy in the history of the world.
I mean, everybody was doing better.
Every demographic wages were up, the job participation numbers where at record highs, inflation was down, and manageable things were going great.
And then COVID hit.
So we're going to do that same series of policies, implement that same philosophy, but this time, as I say, on steroids, and it's going to make a major difference for every in everybody's lives.
Spare Johnson.
A lot of people in Marcus are concerned about a number of provisions here and actually don't think they will spur growth, one of them being Section eight ninety nine, which talks about taxing foreign investment in the United States from specific countries that have non tariff barriers like the VAT tax and other things that have been contentious during negotiations of trade deals. How much do you see that dampening. I mean, there's not a concern for you because right
now around the world. There are people wondering whether they can still invest in the United States without getting penalized for it.
Yes, Look, there's a complexity to the tariff negotiations. I mean, we tip our hat to the White House, and President's strategy is working. As you know, there's more than seventy five countries renegotiating their trade agreements right now, finalizing that even as we speak, that's going to.
Be better for America because it will be more fair.
You know, I'm always liking myself to be a Reagan Republican and free trade is one of our core principles that we've all supported over the years. And every time I would say that over the last several years to President Trump, he would say, yes, free and fair trade, and he's right. I mean, this is a disparity that must have needed to be addressed and it has been.
So we think in total, this is going to be good when it's all when all the dust settles on the tariff negotiations and the new trade agreements.
So it's going to be good for America and good for the world. And so we're factoring that in.
We're working in tandem with the White House, and it's part is going to stay in calculation in the la.
Liaker Johnson, just to be clear that provision will stay in that is important to you.
Look, I think it is.
I mean, obviously the bill is still a live instrument that's being worked on in the Senate, so we'll see if they modify those provisions. But I think for now, I think that's good policy for US, and I want to say to foreign investors, you're in good stead to invest in America. This is the time to do it, because the American economy is about to take off again and it's going to be good for you and good.
For the world.
We're the largest trading partner for most other nations. They need America, and a.
Strong America is good for the whole world.
And that is what we are going to bring about with these sound policies and pro growth initiatives.
Speaking Johnson, you and your colleagues have a self imposed July fourth deadline. Partially that is because you have to raise the debt ceiling. Are you considering raising the debt limit if this deal isn't finished by July fourth with a different measure, Well.
It'd be very difficult to do it.
I mean, it would require bipartisan measure in that regard, and I would like to believe that Chuck Schumer and the Democrats and the Senate would do the right thing, but I wouldn't count on that. That debt cliff as we're regarding it, is coming soon, and that's why Secretary Besson has said we've got to get this done by Independence Day, and I think it'd be a great celebration for all of us. But it's not just because of
the debt ceiling. It's also because we need to get tax relief in this new roaring economy to the American people as quickly as possible. They're owed that and this is going to be a great thing for everyone. And I have to also think about the politics of it.
Right we have a midterm election coming up in twenty twenty six.
If we get this done soon and quickly this summer, then everyone will feel those effects before they have to go vote again in that midterm election. We want to keep the House majority and keep this going for four years for President Trump and not two. And if we lost the majority, there's no doubt that the House Democrats would try to impeach the president and everything would be truly chaotic for investors and job creators and consumers. So we have to keep this going, keep the momentum going.
The timeline is very important, and that's why I put this on a very aggressive schedule.
I said the early part of this year that we.
Would pass the big, beautiful bill out of the House before Memorial Day, and people laughed, they mocked me when I said that, But we beat it by four days. We're going to stay on track and we're going to deliver for the American people.
Will you have exactly twenty nine days to hit that deadline? Are you saying there's no plan B for raising the debt ceiling if this bill is not done between House Republicans and House Senators.
Look, Republicans in a House and Senate will deliver and will take care of our business one way or the other. But I'm just telling you the smartest and most efficacious way to do this is to stay on this schedule and deliver for the people. And that's what we're doggedly determined to do or laser focused on it. And if we take our focus off of that, then the strategy doesn't work. So I'm telling you that we are working on that regard. Leader Thun and I are in constant communication.
He understands that deadline as well.
The Secretary of the Treasury and.
The NEEC and all the leaders in the White House and the Administration understand that.
So we're going to get it done.
Speaker Johnson, how closely are you watching the bond markets right now, given fact that we've seen a real sense of concern, particularly in longer duration US treasuries, We.
Watch it closely.
Look, I really do believe that delivering this historic legislation is going to be critically important for a lot of reasons, not the least of which is that Congress can.
Send a very important signal to the.
Bond markets, to the stock market, to investors everywhere that we're very serious about this not only in getting the US economy roaring again, but also in addressing the long term debt. And I think that's an important thing for everyone to understand. We have a strategy that's a multiple steps, as I said, multiple steps strategy to address this over the next year, two years, three years, and we're going
to get the US economy back on sound footing. We're the Party of Fiscal Responsibility, and you'll see that demonstrated day after day here.
How speaker Mike Johnson, thank you so much for being with us.