Scalise: Reconciliation Will Help Struggling Families

Today, House Majority Leader Steve Scalise (R-La.) joined CNBC’s Squawk Box to discuss bringing permanency to the tax code and passing President Trump’s agenda through the reconciliation package. Leader Scalise outlined how unleashing energy production, securing the border, and cutting wasteful spending would help hardworking families. Additionally, Leader Scalise emphasized the need to strengthen social safety net programs for the people those programs are intended for: vulnerable American citizens, including disabled people, pregnant women, and Americans who have fallen on hard times.
  
On stability through pro-growth tax code:

“No, all the rates are going to stay the same, and that's really good news for the economy to get stability in the tax code. And we're looking to do it permanently, not just for another 10-year extension. There's going to be, of course, some of the things President Trump talked about, like no tax on tips. But you're going to see a continued pro-growth tax code and a prevention of any tax increases on anybody, which is going to bode really well, I think, for investment, economic growth, lowering inflation, lowering costs at the grocery store for families, all of the things that we want to get done.”

On avoiding tax hikes:

“There was a lot of pushback from our members, a lot of us that want to ensure that nobody gets a tax increase, because at the end of the day, what was so successful about what we did in 2017 with President Trump's tax cuts is that we lowered tax rates for everybody. And by the way, not only did everybody do better, all income groups did better, but it was the lower and middle income groups that did the best when you see true economic growth and true reinvestment in America. And so why would you want to raise taxes on anybody? That's what the Democrats do. And by the way, when you go look in these states where they go after the wealthy – hey, look at New York. They've got a billionaire's tax. Well, guess who's leaving New York? All the billionaires. And they're moving to places like Florida and Texas, and Tennessee that have zero income tax. So same thing in California. They go after their wealthy people. They try to play class warfare. And then those people just say, ‘Okay, if you don't like me, then I'll leave and go somewhere where I'm liked.’”

On strengthening social safety net programs for deserving Americans:

“Of course, it's getting paid for. And that's, again, you go back and look at 2017. We took in more revenue the next year after we cut taxes than what we took in in the history of the country.

“Well, that's because of some of the other programs that are untouched. Medicare and Social Security we all know have cyclical problems. And under Biden's own Medicare actuaries, those programs are in trouble. We need to save those programs from bankruptcy, but you can't touch that in budget reconciliation. So, for somebody to try to blame a deficit or a debt on budget reconciliation when you can't even have an impact on those programs, it's disingenuous. Let's talk about what we're doing with this bill as it relates to the overall picture of the budget.

“This bill is being paid for in a number of ways. One, you do actual savings. You get things like stopping illegals from being on some of these programs, putting work requirements into Medicaid, putting work requirements into SNAP, the food stamp program. That yields big savings for taxpayers. By the way, it's going to get people back in the workforce. These programs are safety net programs. They're not designed for somebody, the 35-year-old sitting in his mom's basement playing video games, turning down work. That is not what a social safety net program is. It's to help disabled people, pregnant women, and people in hard times. That's what we're going to focus these programs back on. It's going to make the programs work better, but it will give big savings to the taxpayer.”

On keeping tax rates low:

“I don't want to see that change. I don't want to see us going after any particular group like that. But let's let the bill come out and see where they ultimately decide. This was one of the final decisions that a lot of members went back and forth on. And look, each one of these are tough decisions. Some are easier decisions than others. Work requirements are very widely supported. Carried interest, higher top rate. There was a lot of pushback on some of those.

“We're not trying to change the tax code, meaning upper rate for you and lower rate for somebody else. We want to keep all the rates low. We want to keep the rates where they were. Then there were some additional add-ons, like no tax on tips. Those were things that the President specifically ran on.

“We're not looking to make a change there. I know, maybe you want to see their rate go up. We didn't want to see any rates go up.”

On passing President Trump’s agenda through reconciliation: 

“Yeah, and most of his priorities are in this bill, and he loves this bill. He loves the things that we're doing because it's going to get real economic growth. It's going to help families who are struggling. By the way, opening up energy production, border security, all that's in this bill, too. Debt ceiling, taking that off the table for two years, so you don't have to worry about that debt crisis coming. All of those things are in the bill, too.

“Yes. Those are permanent changes.

“It's one big, beautiful bill. That may be the name of it.”

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