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June 3, 2025 15 mins
Well, it is big ... not sure how beautiful the reconcilliation bill may be, so Kent Strang, Americans For Prosperity, joined Preston. 
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Speaker 1 (00:03):
If I pass the hour. It is the second hour
Wednesday here on the Morning Show with Preston's Sky. Good
morning in Preston. He is Jose And it is May
twenty eighth, show fifty three eighty eight of this radio program.
And I told you we were going to dig into
the big beautiful bill as it has been described, be

(00:23):
to the third Power. And we are joined by Kent Strang,
Managing director of Americans for Prosperity. Keent, how are you
this morning?

Speaker 2 (00:31):
I'm doing great. Thank you for having me. Good morning.

Speaker 1 (00:34):
How would you describe this bill? It is yet another
reconciliation bill. Obviously we still it still has to go
through the Senate. But what are the pluses and if
any minuses of this bill?

Speaker 2 (00:51):
Oh wow, that's a big, big question. I think the
major plus is that a bill like this prevents the
largest tact pike in American history. If Congress fails to
extend the twenty seventeen Tax Cuts and Jobs Act, which
most of your listeners probably know, is the Trump tax
cuts that will usher in. That would usher in the

(01:11):
largest tax pike in American history. And what this bill
does and the good parts of this bill are that
it codifies and makes permanent the tax rates in twenty seventeen.
So the Tax Cuts and Jobs Acts lowered rates across
nearly all income levels. And what this bill does is
it makes those rates permanent and so they can't end

(01:32):
anytime soon like they did or like they're like they're
up against right now. And it maintains the corporate rate
at twenty one percent, and so it provides an incredible
amount of certainty for small businesses, provides certainty for families.
It keeps taxes low, and it prevents again the largest
tax bike in American history, which would be disastrous not
only for the American economy, but for Republican lawmakers who

(01:56):
would have to, you know, wear that as an albatross
around their neck.

Speaker 1 (02:01):
What are what are the most notable things that maybe
concern you if any.

Speaker 2 (02:08):
Sure, Well, let's remember this is a big, gigantic bill
from Congress. And as a statiscal conservative, right there, there's
always things that you know, multi hundred page bills that
you don't love. And so there are some things that
make the tax coda a little bit more complicated, and
we already have an incredibly complicated tax code. We see

(02:29):
an increase in some of the salt deductions. And for
the listeners who may not know what that is, this
is where you can write off your state and local taxes.
And it went from having a cap of ten thousand
dollars and it looks like they're going to move that
up to thirty or forty kind of depending on what
happens with the Senate. And what this kind of creates
is where let's say red states or fiscally responsible states

(02:52):
bail out poorly run blue states like New York and
New Jersey and California where they have incredible high state
and local taxes and incredibly high property taxes. And so
that cap is not it's not amazing policy, but is
it enough to want to think this bill? No Congress
should move forward on a bill like this. And there's

(03:13):
some things that there's some certainly things that they could
fix that are not perfect, that are not great, but overall,
this is a this is a good bill for the
American people, and we should see Congress pass it and
get at the President Trump's desk. And then it has
other it has other elements that just Republicans campaigned on.
And so you'll you may remember, no tax on tip,

(03:33):
no tax on overtime, if those provisions are in this
bill on a temporary basis, and so a lot of
the promises that President Trump and Republicans made on the
campaign stump in October and November of last year find
their way into this bill, and the Republicans should be
proud of delivering on their promises.

Speaker 1 (03:51):
When you say on a temporary basis, explain.

Speaker 2 (03:56):
So like the twenty seventeen tax cutting jobs ACKed, where
a lot of the provisions were temporary, those are elements
that are currently temporary. So no tax on tip, no
tax on overtime, those will have a sunset period and
let to come and renew that. And so that's what
this bill does on the tax brackets, is they made
those permanent. And so right now the provisions for no

(04:19):
tax on tip and no tax on overtime are currently
in the bill as it currently stands. Is it will
have a sunset date and it's not quite permanent, and
another Congress can come back and make it permanent. Well,
the Senate could say, we want to make that permanent,
here's the way to pay for it, and we're going
to do it.

Speaker 1 (04:38):
What would you say to people like me who I
hear what you're saying about the tax cuts, making them
permanent and the disaster that would await not dealing with that,
But also how long are we going to keep kicking
cans down the road? We keep having reconciliation bills, for example,

(04:59):
instead of getting a bu we keep adding to the deficit.
I understand, Mike Johnson. I just listened to a SoundBite
we played two minutes of it where he talked about how, hey,
this is the biggest spending cut. Yeah, but we're still
spending more than we're taking in, and every single voter
can't do that. Government's the only one that can do that.

(05:20):
We run out of credit. They just keep taking money
and spending more than they're taking in. How many times
are we going to kick this down the road before
we deal with it?

Speaker 2 (05:31):
Oh? I agree with you, and I feel for you.
I'm a fiscal conservative myself, and Americans to prosperity pride
ourselves on, you know, limited government, lower taxes, and that's
what we're about. And I think that it's an excellent point.
And while I commenced Speaker Johnson for putting in one
point six trillion dollars in cuts, it's a start, and

(05:52):
the way that I would frame this is that this
is this is a starting point. And I think that
when we kick over to the Senate, they especially as
you hear from members like Senator Paul Senator Ron Johnson
of Wisconsin, they are clearly worried about this as well,
and they want to make additional cuts. And I think
it's important for them to continue to find those cuts.

(06:12):
But at the same time, we have to remember that
there are incredibly small majorities in the House and with
some New York, California, New Jersey members, and we can't
but so much that like it's just unpassable, right, And
so what I would encourage Congress to do is continue
to find the cuts on the Senate side that can

(06:32):
pass the bill, but also we need to take additional steps,
as you've said, to rain in the wasteful spending that
we have in Washington. It is absolutely a problem, it
is unsustainable. I think one way that Congress could do
that is we could look at the DOGE cuts through
a recisions package or multiple recisions package. Let's package up
all the waste and say, like USAID or in some

(06:55):
of the strength running on Treadmill's kind of spending that
we have in this country, rate package it up, get
it to Congress, and end it. They could even do
another reconcile. I know, no, probably don't love reconciliation packages.
And we'd rather have a real budget where we actually
allocate towards the things that we value. But there are
other ways that Congress can continue to cut the waste,

(07:17):
the fraud, and the abbruse. And they have to do that,
especially if it is going to raise the debt. They
have to make it a priority that, Hey, in addition
to this bill, we're going to go back. We're going
to cut decisions. We're going to do things that make
government more efficient for the people or cut the wasteful spending.
But I agree with you, they must do this, and
I hope to see the decision package start to start

(07:40):
to take place alongside this bill.

Speaker 1 (07:43):
Let me let me be more pointed and put you
on the spot here for a second. All right, okay,
how long will Americans for Prosperity give this Congress, this
president before saying, okay, enough, it's time to cut the debt,
and you only do that by spending less than what

(08:07):
you take in.

Speaker 2 (08:09):
I think that's an incredible question. I don't know if
I have the answer to the timeline, and I think
the way that we have looked at this is that
the negative impact of our economy in the immediate of
ushering in the largest TAXYIC in American history would be
incredibly disastrous for our country in the immediate. But I
agree with you that we have to take these steps,

(08:30):
and with a Republican trispecta of the Republican House or
Republican Senate and a repub Gun president, now is the
time to do that. You don't know how long you
have to be able to make these things happen, and
you know right now you're guaranteed two years and you're
not guaranteed anything beyond that. But I agree with you.
America needs needs to get serious about it. Congress needs

(08:52):
to get serious about it. We need to have a
real budgeting process, which form that we do budgeting in Congress,
so members actually are responsible for what goes in and
out of the budget. And so I one hundred percent
agree with you. I don't know if I can give
you an exact timeline.

Speaker 1 (09:07):
I don't have that Reconciliation is a way to get
a budget done without having to get the budget. The
actual number of votes that you might have to have
for a budget. Is that? Is that how you understand it?
Or have I got that wrong?

Speaker 2 (09:18):
Ken Just a complicated process, but basically it allows when
you're doing spending, you're doing allocations where you don't have
to have the full sixty threshold, and the Senate's past
legislation right, you can do it through through singular votes.
And we've seen it a lot through the twenty seventeen
Tax Cuts and Jobs Act was done that way. All

(09:40):
of the Biden agenda, the inflation the ill named Inflation
Reduction Act, Build Back Better that was done through a
reconciliation process. And so it's a let's say, it's an
easier way to get something done because of the hurdles
that it takes to get sixty votes in the Senate,
regardless of what political party is in power.

Speaker 1 (10:02):
Inside the bill that's sitting in the Senate right now,
that has passed the House by the thinnest of margins,
are there, are there Social Security payments? Are those texts?

Speaker 2 (10:14):
I haven't seen that particular provision on there, but I
think it's I'll be sure to take a look at that.
But there's so much in this bill. My wonderful folks
that at Americans prosperand and Policy have like a fifteen
page document of all this stuff in it, and I
haven't come across that one in particular, but I'm happy

(10:34):
to get back to you and your producers to go
through the Social Security I haven't seen that provision.

Speaker 1 (10:41):
Have you noticed any discussion? You know? One of the
things I brought up to members of Congress in the
House and Senate that have been on my program is
just this simple, I guess annoyance that older Americans are
forced to take money out of an IRA at the
age of seventy and some change. I believe it is,
they have to start taking withdraws. Why is that any

(11:02):
of Congress's business? Why they have no say in the matter.
It's my private money, it's not my Social Security money.
Why should Congress have a say on when I take
money out of my IRA? A?

Speaker 2 (11:15):
Yeah, I don't think that they probably should, right, I
think that's probably one of those things when they created
the tax code, they put in these arbitrary deadlines and
arbitrary rules. But I agree with you, I think that
and especially as Americans continue to get older and older
and you want to save that nest egg for a
longer period of time and create growth in it. You
ought to be able to do that. It's it's your investment,

(11:36):
it's your savings. I agree with you on that. I
just looked up the no Social Security and basically it
says that dude to what's called the bird vouts of
the Bird rule, that the security taxes probably can cannot
be changed, but they can increase the standard deduction for seniors,
which which would do that. But that's I just found

(11:59):
the answer for you on this security. But yeah, I
think the Congress it shouldn't be in the business that's
telling you when you can and can't move your investments.

Speaker 1 (12:06):
Well, the reality is more and more people are working
longer and longer in their life, and it defeats the
whole purpose if you're starting to have to take money
out and you lose the opportunity to compound that interest.

Speaker 2 (12:18):
Absolutely right. We live in a time where people are
living longer and longer, and it's you know, we've just
dealt with four years of massive inflation from the Biden administration.
It costs the average American family eleven thousand, four hundred
dollars more just to maintain their lives. And so, yeah,
I've come across people traveling the country retirees or retiree

(12:38):
age saying, oh, I was going to retire in X year,
and now I can't because I need to work two
more years, because I can't afford my gas and my
groceries and the things just to make life. And so
those couple of years in the market can make a
huge difference for folks who are getting ready to enter
that phase of life. And yeah, I don't think Congress
should be telling you when you can't and can't take

(13:01):
investments out. I think there're certainly that's right. But when yeah, not.

Speaker 1 (13:06):
There, I I'm I'm well and where we started, and
that's with the debt and the deficit. And and I've
long lamented can't the lack of ability that Republicans have
to message. They don't know how to communicate very well, uh,
to the American people. And and regardless of whether someone
lives in a blue state they elect blue lawmakers or not,

(13:27):
everyone understands that when they get turned down for a
credit increase or a loan application, it's because they don't
have enough income. And and I've long wondered why we're
not seeing better messaging to stop Congress from spending money
they don't have by pointing out that that we just
we need, we need government to operate the way our

(13:47):
households operate. Do you ever see a time when groups
like yours and others coalesce together and and do the
messaging that the Republicans seemingly don't know how to do.

Speaker 2 (13:59):
Sure, I think I think Republicans are getting a little
bit better at it. Like, let's take the medicaid discussion, right,
I think that the progressive left is saying, oh, you're
going to kick everybody off, it's this inhumane thing. And
I think finally Republicans are starting to find the right
messaging that what able bodied men without dependence should go
to work, and about seventy percent of Americans think that,

(14:22):
and that a work requirement for an able bodied human,
you know, able bodied man with no dependence is a
good thing, and that hey, we're not taking off single
mothers who rely on these programs, like these are folks
who are non citizens, or these are folks who do
not did not deserve this benefit. And so they're starting
to push back on that messaging. But yes, I mean,

(14:43):
we have to get serious and there are a few
members of Congress that are very serious about the spending
reductions that we need. But I agree with you. I
think it's we need a we need an opportunity for
us to talk about the out of control gunment spending.
I thought that would come after the Biden years where
they just send us into oblivion, But you're right, we
have America's got to get serious on the spending cuts,

(15:04):
and hopefully we see that through some decisions.

Speaker 1 (15:06):
Packages I hope Kent, thanks for the time this morning.
I appreciate a little more clarity on the bill, and
hopefully we'll talk again soon.

Speaker 2 (15:14):
Absolutely, thank you for having me. Have a great morning.

Speaker 1 (15:16):
Thank you, sir. Kn't strang with Americans for Prosperity twenty
eight past the hour
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