Bloomberg Audio Studios, podcasts, radio News. We're really glad to be joined by Congressman Mike Lawler, the Republican from New York is with us now live from Capitol Hill. There is news of a deal on salt, a forty thousand dollars cap. If that's real, Congressman, you managed to quadruple the current cap. Is that the kind of bacon that you can bring home?
But this was a critically important negotiation. I was very clear for over two years that I would never support a tax bill that did not adequately lift the cap on salt. We put pen to paper yesterday, met with leadership, worked throughout the course of the day to come to an agreement that would lift the cap on salt and provide real and immediate and lasting tax relief for hardworking
middle class families. The agreement would lift the cap to forty thousand, with an income cap of five hundred thousand that would be phased out, and anyone making above that would go back down to ten thousand, which is the current cap. And it provides for the entirety of the ten years of the bill, which is critically important to make sure that folks are getting real relief. You look at a district like mine, three of the top four of the four counties I represent are in the top
sixteen highest property tax counties in America. So when we talk about these issues, this isn't about the rich. This is about providing tax relief to middle class families who are besieged by high property taxes and high income taxes. And many of my colleagues will say that a lot of people don't itemize and they don't take the salt deduction. Well, that's true, because we doubled the standard deduction, and part
of the pay for for doubling that was salt. And so we're seeking, after seven years of having this ten thousand dollars cap, to provide real relief to the middle class. And that's what this is about.
Congressman, should we take that to assume, with the terms of this deal, that you are now a yes on this legislation, And assuming you are, are you aware of any member of the Salt Caucus who was not yet too yes with you?
I think the members of the Salt Caucus negotiated yesterday in good faith with leadership with the administration, and we settled on something that we believe in that we support. Obviously we're waiting for the final details to emerge out of the Rules Committee, but obviously we made great progress yesterday and I feel much better about where the bill is. As a result.
There does seem to be some growing optimism over a possible floor vote as soon as today, Congressman, maybe tomorrow. I know the Speaker wanted to see it happen by the Memorial Day break. Will that be the case.
I know the administration and leadership are working to get that done. Meeting with members today, Obviously, you know that time frame is something the Speaker set out to achieve.
The objective here is to get the bill passed ultimately to take effect, to make sure that we are providing real tax relief, that we are securing our border, that we are strengthening our military, increasing domestic production of energy, and protecting vital programs like Medicaid long term and cutting out the waste, fraud, abuse, and making sure that illegal immigrants, for instance, are not receiving benefits and taking away from the very people who rely on these programs, like the
idd community or our seniors or children. We want to protect this for the long term, get our fiscal house in order while providing real tax relief. That's what this bill is about. We've been working on it for months. Obviously, anytime you're negotiating, there's going to be a give and take, there's going to be a back and forth. You know, you work through these issues and come to an agree and you know, as I've said many times, anybody who's ever been married knows you're going to have to find
compromises along the way. You're not going to get everything you want in life. So you've got to work through this. And that's what we've done in good faith.
Well, and it's not just compromises within the House Republican Conference, but there also may need to be compromises made between the House and Senate, which will take up this measure next, assuming it can get off the House floor. Congressman, has the Speaker shared with you any assurances that the Senate will not make changes to the salt deal that he just negotiated with you and your colleagues.
This obviously has been a big topic of conversation, and I'll keep those conversations private, but I certainly know that the Speaker understands how important it is that this agreement remain intact, I.
Want to go back to the case that you made for raising the salt cap. In the outset Congressman, we heard from Chip Roy of course, allowed member of the Freedom Caucus, who I understand is going to be meeting with the President later on today. He suggested that leadership is buying quote, a handful of seats with three hundred and fifty billion dollars in parochial tax subsidies in the
form of salts. Is it possible to have a conversation with someone who holds that point of view or are you counting them out?
Listen.
I respect all my colleagues and their perspectives. The fact is New York is a donor state. We send more money down to Washington than we get back. So we can get into the subsidy debate about which states are taking money from the federal government and which ones are actually helping fund the federal government. But the fact is that New Yorkers should not be double tax They should not be penalized for living in a high tax state.
Salt was in effect for over one hundred years, and it was used as a pay for, and frankly, part of that pay for was to double the standard deduction and provide tax relief to Americans all across this country. We're just simply saying, after seven years of the ten thousand dollars cap, which was arbitrary and caprice, that we need to have a much fairer approach. And that's what we have negotiated. Everybody has understood this for well over two years. I ran on this, I fought for it.
I said it very clearly from the moment I came here that I would never support a bill that doesn't adequately lift the cap on salt. We have been working to negotiate to an agreement, and so that's what we've done, and I stand by it well.
And of course you and your fellow New Yorkers who have helped make the Republican majority, have made the case that if that majority is to be retained, there needs to be changes to salt. But as we look ahead to twenty twenty six, if the other side of this getting what you want on salt is conservatives also getting a pulling forward of stricter work requirements around Medicaid to begin in December of twenty twenty six, as we understand, does that not put the majority at risk for a
whole other reason. How do you navigate around that issue in the midterms.
Well, look, at the end of the day, I think there's broad consensus within the conference on a few key areas. Number one, eligibility verification making sure that somebody who is not eligible doesn't remain on the program for up to a year, which is what the Biden administration allowed. Citizenship verification, making sure that illegal immigrants are not receiving benefits that they're not entitled to. And work requirements. Able bodied adults
without dependence should be trying to work. I mean you're talking about eighty hours a month of work requirements, or educational requirements or volunteering. Anybody who is able bodied should be trying to improve their life by working. The fact is Medicaid is a means tested program, and so as part of that, you are trying to help lift people up, lift them out of poverty, lift them out of their situation. Work requirements are something Democrats fought for for years. Bill
Clinton was the biggest champion of work requirements. So I don't think the issue of work requirements speeding up from twenty nine to twenty seven is frankly an impediment. I think there's broad consensus that we should be trying to help people lift themselves up. Work requirements is a way to help facilitate that as we are providing them with support through Medicaid.
All right, Congressman, we appreciate you joining us here on Bloomberg TV and radio. Republican Congressman Mike Lawler of New York with us live from Capitol Hill.