Bloomberg Audio Studios, podcasts, radio news, turning from markets to the nation's capital. In fighting between House Republicans threatening to delay a much anticipated tax bill, the key issue salt cap increases. One man the center of all of that, among others, Congressman Mike Lawler of New York. The congressman joined us now from Capitol Hill for more. Congressman, Welcome back to Bloomberg Survevance. Sir, it's good to see you again.
Thanks for having me.
Let's talk about progress made this week. Speak of Johnson keeps saying we're getting closer and closer. What's your assessment of how much progress we've made so far this week?
Well, finally this week we had the opportunity to sit down and go through real numbers and start to have a negotiation. And I think that was long overdue. We had been pushing for months to have that conversation with the Ways and Means Chairman, with the Speaker, and so we finally began that process.
And obviously, you.
Know this is something that's going to have to be negotiated over the weekend to get to hopefully an agreement. When it comes to the issue of salt.
We understand the proposal a tripling of the deduction to thirty thousand. Could you give us a sense on how far apart you are right now?
Well, there's a number of issues.
Number one, the marriage penalty and eliminating that for those filing jointly. Number two, you know, there is real concern about reverting to a ten thousand dollars cap.
Which none of us support. That is a real challenge.
Number Three, the fact is, these income limits are a problem four hundred thousand. While it may sound like a lot in some areas, in an area like mine, you know a cop and a teacher who are married and you know have a combined income. So the fact is we have high property taxes coupled with high income taxes, and you'll blow right past the thirty thousand dollars cap without a problem. You look at my district, three of the four counties that I represent are in the top
sixteen highest property tax counties in America. And so there's a real issue here in terms of the numbers, and so we're working through it. You know, I've read the art of the deal. I'm not going to negotiate in public. But the fact is that you know, we need to make some significant concessions to get to a number.
Congressman, what would you like to see cut to offset some of the increases to the salt tax deduction because ultimately sell cap, because that's a real concern right now for market is how much does that alone increase the deficit?
Well, a few things.
Number One, any cap is a savings okay, because the fact is that the cap consalt expires at the end of the year, So we are actually giving them a pay for by agreeing to a cap. That's number one, and people should recognize that as part of these negotiations. Number Two, there's a number of levers that can be dealt with here in terms of savings versus adjustments within
the tax code. That's what we're talking about. We're waiting to hear back from the Speaker and then be able to make an honest determination as to what we can get to.
There's also this issue, Congressman, that as a debate has raged on, there's been an argument that you have pioneered saying that moderates make the majority for Republicans and that you need to be able to punch above your weight because without you, they wouldn't have the position that they actually have. How much is this sort of setting the stage for what's to come. How much do you see this as a theme that we're going to hear about quite a bit as we had to the midterms.
Well, listen, we have a two hundred and twenty seat majority and three of us one districts that Kamala Harris won. You lose the three of us and you're in the minority very quickly. So you know, look, I think the reality of this is math. And I certainly respect all of my colleagues. They're all here to represent their districts as am I and my district has different needs than some of my colleagues who are in safer seats, who are in more Republican seats. That's just a reality of life.
And so to me, this is about a compromise. None of us are going to get everything we want in this bill or any bill, but all of us have to find a way to work together to keep the majority and make sure that we're delivering for the American people and our districts. And that's what I'm doing in fighting for this issue, fighting to protect medicaid.
I have one of the highest.
District with one of the highest number of recipients of Medicaid.
There are people who rely.
On these critical programs, and I'm doing everything I can throughout this process to protect that, including blocking any changes to f MAP, per capita caps, block grants, dish cuts.
We've been able to do that throughout this process and make sure that those who rely on these programs receive the benefits that they need, while making sure that we eliminate waste, fraud and abuse, prevent illegal immigrants from receiving Medicaid benefits, make sure that able bodied adults without dependence are working, we're going to school, and making sure that those who are no longer eligible are not continuing to
receive benefits. Those are common sense reforms that the vast majority of the American people's support.
A Congressman, you mentioned the out of the deal. Let's talk about the author of the out of the deal. The President's on its way back to Washington. Do you have plans to speak to him and you have a decent sense of what his position is.
I will be reaching out to connect with him, for sure. I think he obviously had a very successful trip in the Middle East, brought back significant investment into the United States. In agreements with Saudi Arabia, UAE, and Cutter, and that obviously bodes well for the American economy as we move forward. So this was a great trip for the President. As chair of the Middle East and North Africa Subcommittee, certainly I'm looking forward to getting a readout of more details
on what occurred on the trip. But I think it was a big win for the President and so he comes back obviously on the prespice of getting you know, one big beautiful bill passed, and so we have a little bit of work to do still. But I think, you know, it's been a very good week for the President.
I know you've been up all night. I just wanted to squeeze in one more question that I think is relevant to a lot of our audience. You've co sponsored the Trust Act Trusting Congress Act to band stock trading in Congress. Can I just say, Congressmen, we all find it absolutely ridiculous that people in Congress have looser regulations restrictions to trade stocks that we do as financial journalists. Congressmen, can we actually do something about that sometime soon?
Look, I am in full support.
The fact is you're here to serve if you want to make money leave you know. This to me is a very common sense reform to make sure that members of Congress or their spouses. We've seen some spouses who are prolific traders in recent years. The fact is they should not be benefiting from inside knowledge or information gleaned from meetings they have, committee hearings they hold, or legislation.
That is pending.
And it's just a reality of life that anyone in this position is provided with more information than the average person, and therefore it is imperative to make sure that members of Congress or their spouses are not benefiting from that information, and all of their assets should be put in a blind trust period.
If that that could have tried inlet should start a hedge fund. Congressman, appreciate your time, sir, Gonna have a busy weekend. I'm sure let's hopefully catch up against soon. Congressman might lalla there