Rep. Mike Lawler Talks SALT Caucus Vote

Republican Representative Mike Lawler of New York said lifting the cap on the state and local tax deduction is an essential piece to get the tax-cut bill passed. He also voices support for the inclusion of Medicaid work requirements as republicans look for ways to reducing spending. Lawler speaks with Bloomberg's Joe Mathieu and Kailey Leinz.

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Episode Transcript

Speaker 1 (00:02):
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

(00:22):
you can bring home?

Speaker 2 (00:24):
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

(00:47):
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

(01:09):
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

(01:29):
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

(01:50):
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.

Speaker 3 (02:00):
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?

Speaker 2 (02:14):
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

(02:34):
yesterday and I feel much better about where the bill is.
As a result.

Speaker 1 (02:40):
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.

Speaker 2 (02:52):
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

(03:12):
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

(03:34):
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,

(03:56):
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.

Speaker 3 (04:14):
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.

Speaker 2 (04:34):
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.

Speaker 1 (04:47):
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

(05:08):
form of salts. Is it possible to have a conversation
with someone who holds that point of view or are
you counting them out?

Speaker 3 (05:15):
Listen.

Speaker 2 (05:15):
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

(05:36):
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

(05:57):
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

(06:18):
to negotiate to an agreement, and so that's what we've done,
and I stand by it well.

Speaker 3 (06:25):
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,

(06:47):
does that not put the majority at risk for a
whole other reason. How do you navigate around that issue
in the midterms.

Speaker 2 (06:54):
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

(07:15):
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

(07:37):
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

(08:01):
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.

Speaker 3 (08:19):
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.