Congressman Jody Arrington
Appearances
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
I respect the president. I know how important it is to pass this bill. Allowing the tax cuts to expire would be catastrophic. It would be the single largest tax increase in American history. But I'm not going to sacrifice my constituents and throw them under the bus in a bad faith negotiation, which is what this has been by leadership and Jason Smith.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
But the fact is, we need to come to an agreement. We need to provide real and lasting tax relief. And that's what I'm fighting for, for my constituents. So I respect the president, respect the Wall Street Journal, but I'll respectfully disagree.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
Well, I think that one of the critiques is we're not doing enough to reduce spending. Obviously, spending lit the fuse on the cost of living crisis. We're also dangerously close to a sovereign debt crisis if you look at the bond markets and our treasury 30-year bond yields. So we do cut more spending than we ever have in the history of the country by two times. But
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
There's always more waste and opportunity for structural reforms. in a balance sheet that's going to add $125 trillion in cumulative debt over the next 30 years. So I think it's a legitimate concern from fiscal hawks. Of course, you've got the New York delegation in California, the SALT caucus, as they call themselves. They want to lift the cap on state and local tax deductions.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
And that's a problem for a lot of red states, a lot of low-tax states like Texas. We don't think it's good policy to enable and subsidize big government, bad policies, high taxes in states and locales around the country, but they need a political win. I think dialing that in to the working people to give a break to folks at the lower end, not not the rich guys with a second home in the Hamptons.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
So I think there's a way, there's a path forward there. You also have folks who want to accelerate the green energy tax credits. This cost us 500, $600 billion. And it's distortionary, regressive. It raised the prices of energy for everybody, made us more energy dependent. So that's got to go. But the question is, how do you responsibly phase those out? That's a debate within the conference.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
Those are just some examples. On the Medicaid side, this is an example of, I think, a no-brainer. We put a work requirement in for able-bodied adults. It's the only welfare program, means-tested welfare program, that doesn't have such a requirement. And the phase-in of that, or the implementation date, was like four years out. That's been moved up.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
So there's a lot of cleanup and tweaks like that that I don't quite understand why they were in place the way they were in the first place, but we're making those changes.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
I think that's a great summary actually. What we set out to do as fiscal hawks and members of the budget committee, certainly as the chair of the budget committee was to say, look, we have to extend the tax cuts. We have to grow the economy. We have other pro-growth policies. like the largest deployment of federal energy assets in the history of the country.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
So there's work incentives, tools to help the president deregulate this economy after trillions of dollars of regulations. that have hamstrung mostly the medium and small businesses. So growth is a part of the equation to restoring fiscal health and bringing down the debt to GDP. And I think this bill will have a meaningful impact on our growth.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
But what we did from the outset is say, we're not just going to cut taxes and not offset the cost. Not all tax cuts are created equally. And some tax cuts will return some revenue to the Treasury because of economic growth. Some won't. And then, of course, we do make the largest investment in strengthening our security, border security and and defense. But we need to offset that.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
We need to be responsible. So this bill does those things on security, does those things to promote growth, but does not add to the deficit. In fact, modestly reduces the deficit over the 10-year budget window. And because of growth, reduces the debt to GDP by 10 percentage points. Again, Ben, this has to be done repeatedly for probably two decades.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
This is the same pattern or model for getting out of the debt hole after World War II. So it's going to take persistence and discipline. But we're cutting a path that hasn't been cut before. And we're doing it in a responsible way. And I'm very proud of this product. Not perfect, not far enough for a deficit hawk, but certainly a good, big product. and meaningful step in the right direction.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
The Senate says that they could get their work done by July 4th. I don't know if they will or not. I know this. They have a better chance of doing that because of the several months of work that has been put in this. By the way, long before President Trump was sworn in or we started this 119th Congress. So we're gonna get this package done.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
Whether we get it done this weekend or not, I think the chances are good. If not, it'll be soon thereafter. And if we get the product there in the Senate, I think they'll make some modifications, hopefully not material changes, and that will help expedite it to the president's desk. But I don't think they're going to get much more in terms of deficit spending reduction.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
I don't think they're going to give away any more in terms of tax breaks for special interest. That's what I would put in the column for the SALT cap increase. And I don't know that they're going to be able to do any more than we're doing on the growth side. I think that's sort of been maximized. So the House is driving it.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
All of our work, I think, will help facilitate a seamless, relatively for Congress, seamless path to the president's desk. And then most importantly, and making it a reality for the American people so that we truly make America safer and more prosperous again. And I think this bill will do that.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
Oh, it does. I couldn't agree more. I think CBO missed the mark again on predicting a 1.8% annual average GDP. That's the growth rate on average for the next 10 years, while assuming that the tax cuts would expire. The tax cuts expiring were a $4.5 trillion tax hike on the American people and our job creators would be devastating. We would certainly be in a recession.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
And we're talking about 26 million small businesses not getting the comparable treatment to the corporate rate that was reduced. We took their 20% deduction to 23%, but just on individual basis, 91% of the American people take the standard deduction. That would be cut in half. 45 million people get a child tax credit. That would be cut in half.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
On average, the American people would receive a 22% tax increase. So look, the bottom line is, as you said, and I think you said it well, we've got to extend the tax cuts. We put a few more in place that are targeted on working people in this country. I think after about, I think it was a 20% regressive inflation tax over the last few years, that's appropriate.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
So it's about bringing the prices down. It's about getting our economy off high center. If you grow the economy, Ben, by one percentage point over the next 10 years, over the budget window, we will reduce the deficit by $3 trillion. So
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
It's important, again, that we get our economy growing, create those conditions, unleash prosperity, build on that, and also build the political will and the support from the American people to understand that all these entitlements that are on auto spend that represent 90% of the increase in spending over the next 10 years that will drive us from World War II levels of debt to
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
$125 trillion on top of that, which is unsustainable, it's the biggest threat to the economy, to our security, to our global leadership, our children's future in the world. But we've got to sell that. We have to have the American people, as Abraham Lincoln said, if you have the public sentiment, you can do anything. If you don't, you can't do anything. And so we've got some work to do there.
The Ben Shapiro Show
Ep. 2204 - Rubio BLOWS UP Senate Democrats
But again, we're starting to turn the battleship. This is a responsible bill. I'm very proud of it.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
Well, I think it should just be an apples to apples fairness in terms of trade policy. So it should be tariffs. There are non-tariff sort of technical barriers like GMO with respect to our ag products. There are quotas that are not considered tariff, but they're still huge barriers. They've been for many years for dairy products going into Canada.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
That was part of the restructuring of the NAFTA to USMCA. And so there's a number of ways, VAT taxes, border adjustment taxes. So I think the president and his team are looking at the totality of it. But I'm with you. It needs to be apples to apples.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
We're not looking for isolationism or we're not looking for Chinese industrial policy where we're subsidizing our guys and blocking out competition from others.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
That's a great question. I think there are national security implications if we can't make materials that go into making war machines that protect our country and our allies like Israel. So that's one you have to watch closely.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
I think we all were surprised during COVID to find out that we couldn't get protective gear for our healthcare workers or that 90% of our antibiotics, for example, were made in China. And then, you know, computer chips that run everything effectively. We were a sole source provider with Taiwan.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
So you have to look at these things I agree with in terms of where is the national security or public safety nexus.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
and then on all and on everything else ben it needs to be the apples to apples fairness issue and uh because i do think we've been taken for granted that's why we have a two to one uh three to one uh a deficit with uh the top 20 countries representing the top 20 largest uh economies in the world
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
Well, let's just go back and look at just real quickly the first term. We had the highest levels of business investment, R&D investment. We had the lowest unemployment. We lifted 6 million people out of poverty. All of this was the comprehensive economic policy agenda. which included reset on trade, but it also was good energy policy, good tax policy, and work incentives, right?
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
Work incentives for work-capable adults. So we've gotta get back, transition from unbridled spending and failed economic policies to this agenda, most of which, to your point, is wrapped up in this budget reconciliation bill. We need to lock in the low taxes. We certainly can't have $400 billion tax hikes in the first year, which sent us into a recession.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
We can't add 22% on average of a tax hike on taxpaying Americans after Bidenflation, which was about a 20% regressive tax hike. So couldn't agree more. That's in there. Opening up energy production, deregulating the economy, work incentives, investment in military and border security, all in there. That's why it's one big, beautiful bill, right?
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
That is the full America first agenda for the most part and the most consequential piece of legislation in my lifetime, Ben. But. We have to make sure that as we advance this and all the cost to it, we start to bend the spending curve that's driving an unsustainable debt. And Republicans have failed in the past to do that. And I want to make certain.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
not just for this great country, our economy, and our current security or defense readiness, but for our children who are going to inherit the whirlwind of our recklessness now to the tune of $36 trillion in debt, $2 trillion annual deficits, a trillion dollars just to service the debt. Those are all deferred taxes on our children. So we have to have offsets.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
We cannot increase the deficit and we got to get our country on a sustainable and responsible path. That's missing from the Senate's bill. That was in the House bill. And I made sure of it along with other colleagues. So at the end of this rainbow, we have to get to a spot that we reignite economic growth through all the policies we talked about, including tax.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
But we're bringing the debt to GDP down. We're bringing the deficit to GDP down. Otherwise, we bankrupt the country and none of this matters. None of it. And we're not the leader of the free world. And our values aren't the dominant values that influence the world. And we can't support our allies, et cetera, et cetera.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
Well, a whole lot. I mean, you have to have, if you just took the Medicaid, that's the largest means tested welfare program. It doesn't have a work requirement for able bodied adults like all the other programs from the Bill Clinton welfare to work. era that actually brought down dependence on welfare by 80%, but it's been gamed by states and others, especially California.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
So we have to close the loopholes there and we have to put actual expectations for work capable adults in these programs, like in Medicaid. If you just reviewed the roles, This is a basic program integrity measure that everybody can understand.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
If you review the roles and make sure that those benefiting are legally eligible and they're not here illegally in this country or for other reasons aren't eligible, then you save $160 billion just reviewing it twice versus once. So it's all of the above. You also have states and local special interests that siphon money away from these programs that have nothing to do with the beneficiary.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
So it's broken. It's part of what's bankrupting the country. And we've got to act responsibly as we write this fiscal ship to focus on these welfare programs.
The Ben Shapiro Show
Ep. 2172 - What The Hell Happened on LIBERATION DAY?!
Ben, it's an honor to be with you.