Verdict with Ted Cruz - January 29, 2025


The Legal Basis for Retaking the Panama Canal, plus No Taxes on Tips is Happening


Episode Stats

Length

38 minutes

Words per Minute

155.2449

Word Count

5,908

Sentence Count

443

Misogynist Sentences

2

Hate Speech Sentences

8


Summary


Transcript

00:00:00.000 This is an iHeart Podcast.
00:00:02.580 Guaranteed human.
00:00:05.480 Welcome. It is Verdict with Senator Ted Cruz, Ben Ferguson with you.
00:00:09.460 And Senator, I never thought I'd say there was a whole lot of action today in the Senate
00:00:14.200 when it comes to the Panama Canal, but that is exactly what happened
00:00:19.380 is we're learning a lot more about the corruption there that should shock a lot of Americans.
00:00:24.520 Well, today I chaired a hearing in the Senate Commerce Committee on the Panama Canal.
00:00:29.060 And listen, Donald Trump has raised this issue.
00:00:32.600 It is a very significant issue.
00:00:34.540 I got to say, when he raised it, a lot of people in the media, a lot of Democrats dismissed it,
00:00:38.840 thought it was crazy talk.
00:00:40.440 But I actually think it is a very serious point.
00:00:43.800 We've talked about this before on the podcast.
00:00:45.980 But today I chaired a hearing on the Panama Canal,
00:00:49.600 and in particular on the conduct that Panama has committed,
00:00:54.440 potentially in violation of the treaty.
00:00:57.460 So the United States built that canal.
00:01:01.540 Over 30,000 lives were lost in the construction of that canal.
00:01:07.340 Over $15 billion in today's dollars were spent by America,
00:01:14.820 by American taxpayers in building that canal.
00:01:18.000 And Jimmy Carter sadly gave it away, gave it to Panama.
00:01:21.640 It was indefensible.
00:01:22.760 I remember I was a little kid.
00:01:24.660 You were not even been a sparkle in your daddy's eyeball when this happened.
00:01:30.000 But I remember it well, and I remember being pissed.
00:01:32.360 And by the way, this was one of the major issues that got Ronald Reagan elected in 1980
00:01:37.280 because Jimmy Carter gave this away.
00:01:40.600 Well, Donald Trump has rightly raised this.
00:01:44.140 And in particular, when Jimmy Carter gave it away, Panama agreed to a very specific treaty,
00:01:50.660 a treaty to keep the Panama Canal neutral and to charge America fair and equitable rates.
00:01:57.900 And the hearing we had today was testimony from numerous experts that Panama is in violation of that treaty,
00:02:06.780 that number one, that they have ceded enormous control to China over the canal.
00:02:13.200 And this is the point President Trump has made that is really quite powerful.
00:02:16.980 And number two, that they are charging exorbitant rates to American shippers,
00:02:22.140 to commercial shippers, and to the U.S. Navy.
00:02:24.140 And so that hearing we're going to break down today.
00:02:26.860 We also, we saw this weekend President Trump went and did a major event pressing his policy for no taxes on tips.
00:02:35.820 This is a policy we're going to get enacted.
00:02:38.260 I am the author of the legislation in the Senate to get this done.
00:02:42.880 And I believe we're going to get this done this year.
00:02:45.040 We're going to break that down as well.
00:02:46.640 I want to take a moment real quick and talk to you about January the 27th.
00:02:51.200 You may not have realized, but the 27th was International Holocaust Remembrance Day,
00:02:56.520 a day to remember the great evil of the Holocaust when millions of Jews were slaughtered during the Nazis' reign of terror.
00:03:03.940 Today, unfortunately, the rise in global anti-Semitism and the constant attacks on Israel
00:03:09.780 are showing us that it's more important than ever to remember the atrocities of the Holocaust
00:03:14.020 to ensure that it never happens again.
00:03:16.840 And that's why I'm proud to stand with the International Fellowship of Christians and Jews.
00:03:22.960 They do incredible work by providing food, shelter, and safety to Jews in Israel and around the world,
00:03:28.980 including those remaining Holocaust survivors.
00:03:31.660 Your donation today will help provide food, water, medicine,
00:03:35.440 and not only basic necessities to the Jewish community,
00:03:38.080 but also things like bomb shelters and armored ambulances that they need in Israel right now.
00:03:44.880 And through your gift, you will stand with the Jewish people and against this growing anti-Semitism and hatred.
00:03:51.160 So to give to show your support to the Jewish people, you can visit supportifcj.org.
00:03:58.760 That's one word, supportifcj.org.
00:04:03.420 You can also call and give them a donation, 888-488-IFCJ.
00:04:09.380 That's 888-488-IFCJ, 888-488-4325, or supportifcj.org.
00:04:21.100 All right, so Senator, let's go back in history and really dive into how all this got started.
00:04:29.420 And you mentioned in the intro there, America built the Panama Canal, and then it was given away.
00:04:35.180 So let's talk about the building, let's talk about the price, let's talk about the cost,
00:04:40.940 and including people that literally gave their lives building this incredible thing,
00:04:44.560 why it was built, and then let's get to why we gave it away.
00:04:48.900 Listen, it was a massive investment from the United States.
00:04:52.460 It was an extraordinary endeavor.
00:04:54.780 Teddy Roosevelt had the vision to build the Panama Canal.
00:04:57.820 Look, it used to be that traverse from the Atlantic to the Pacific Ocean.
00:05:02.180 You had to go all the way south below South America, and that took enormous time.
00:05:07.640 It was enormously costly.
00:05:09.480 And America said, we can construct a canal through Panama.
00:05:14.500 We can cut that journey dramatically shorter.
00:05:18.020 It was a major investment.
00:05:20.420 And as I said, over 30,000 lives were lost building that canal.
00:05:24.320 It was not a small investment, $15 billion.
00:05:28.680 And listen, before we get started, I want to just take a musical moment to reflect.
00:05:36.640 So give a listen.
00:05:47.920 That's what we're talking about today.
00:05:49.520 So I love that you played the song there, and you guys actually talked about possibly
00:05:54.820 playing that today in Congress, which made me laugh at the hearing as well.
00:06:00.280 Well, that's true.
00:06:01.440 And so let's start.
00:06:02.620 So we opened the hearing.
00:06:04.160 And by the way, the Senate Commerce Committee, of which I'm chairman,
00:06:07.680 has explicit jurisdiction over the Panama Canal,
00:06:10.980 because it is enormously important for American commerce.
00:06:14.680 And so that's why we started with this major hearing.
00:06:17.020 So give a listen.
00:06:18.360 This is my opening statement as we open the hearing.
00:06:21.440 We're here today to examine a monument to American ingenuity, the Panama Canal.
00:06:28.700 Senator Moreno down there suggested we open the hearing by playing Van Halen and Panama.
00:06:34.860 We may not do that.
00:06:37.380 But between the American construction of the Panama Canal,
00:06:41.920 the French effort to build an isthmus canal and America's triumphant completion of that canal,
00:06:50.000 the major infrastructure projects across Panama cost more than 35,000 lives.
00:06:56.740 For the final decade of work on the Panama Canal,
00:07:00.080 the United States spent nearly $400 million, equivalent to more than $15 billion today.
00:07:07.780 The Panama Canal proved a truly invaluable asset,
00:07:12.500 sparing both cargo ships and warships the long journey around South America.
00:07:18.320 When President Carter gave it away to Panama, Americans were puzzled, confused, and many outraged.
00:07:25.640 With the passage of time, many have lost sight of the canal's importance,
00:07:31.560 both to national security and to the U.S. economy.
00:07:34.360 Not President Trump.
00:07:38.460 When he demanded fair treatment for American ships and goods,
00:07:43.580 many in the media scoffed.
00:07:45.500 But the Panama Canal was not just given away.
00:07:49.580 President Carter struck a bargain.
00:07:51.480 He made a treaty.
00:07:53.440 And President Trump is making a serious and substantive argument
00:07:56.720 that that treaty is being violated right now.
00:07:59.860 This committee has jurisdiction under the Senate rules over the Panama Canal.
00:08:03.560 And today, we will examine evidence of potential violations.
00:08:08.480 President Trump has highlighted two key issues.
00:08:11.220 Number one, the danger of China exploiting or blocking passage through the canal.
00:08:16.920 And number two, the exorbitant costs for transit.
00:08:20.780 Chinese companies are right now building a bridge across the canal
00:08:24.180 at a slow pace so as to take nearly a decade.
00:08:28.640 And Chinese companies control container ports at either end.
00:08:35.640 The partially completed bridge gives China the ability to block the canal without warning.
00:08:41.880 And the ports give China ready observation posts to time that action.
00:08:47.620 This situation, I believe, poses acute risks to U.S. national security.
00:08:52.400 Meanwhile, the high fees for canal transit disproportionately affect Americans
00:08:58.020 because U.S. cargo accounts for nearly three-quarters of canal transits.
00:09:04.040 U.S. Navy vessels pay additional fees that apply only to warships.
00:09:09.480 Canal profits regularly exceed $3 billion.
00:09:13.020 This money comes from both American taxpayers and consumers in the form of higher costs for goods.
00:09:20.860 American tourists aboard cruises, particularly those in the Caribbean Sea,
00:09:24.980 are essentially captive to any fees Panama chooses to levy for canal transits.
00:09:31.060 And they have paid unfair prices for fuel bunkering at terminals in Panama
00:09:36.320 as a result of government-granted monopoly.
00:09:38.460 Panama's government relies on these exploitative fees.
00:09:43.020 Nearly one-tenth of its budget is paid for with canal profit.
00:09:47.860 As those fees cascade through the American economy and the federal fisc,
00:09:52.720 the Chinese Communist Party advances its global economic contest against the United States
00:09:57.460 and takes a militaristic interest in the canal.
00:10:01.880 While President Trump is rightly focused on these key issues, there are additional problems.
00:10:06.120 In the last two years, the Canal Authority generated record revenue,
00:10:11.120 even while transits were depressed by drought conditions.
00:10:14.940 And the only comfort to delayed and overcharged ships is that Panama may invest in more freshwater reserves in the future.
00:10:22.080 Even as it takes advantage of the global maritime system, Panama has emerged as a bad actor.
00:10:28.480 Panama has for years flagged dozens of vessels in the Iranian Ghost Fleet,
00:10:34.280 which brought Iran tens of billions of dollars in oil profits to fund terror across the world.
00:10:43.020 And Chinese companies have won contracts, often without fair competition,
00:10:47.160 as the infamous Belt and Road Initiative has come to Panama.
00:10:51.960 China often engages in debt-trap diplomacy to enable economic and political coercion.
00:10:57.720 But in Panama, it also seems to have exploited simple corruption.
00:11:03.020 So, Senator, you look at these warnings, and there are like multiple red flags here.
00:11:09.460 Iran and China and this bridge.
00:11:14.320 And basically, the highest bidder can get whatever the hell they want,
00:11:19.020 no matter how shady they are, from Panama and the Panama Canal.
00:11:22.460 Am I wrong?
00:11:23.360 You're not, and there were several striking things in the hearing.
00:11:26.780 Number one, we had a series of witnesses from the Federal Maritime Commission,
00:11:30.600 and we had an international law professor who testified about the neutrality treaty.
00:11:36.760 And they testified about a number of things.
00:11:39.440 Number one, there's a treaty that governs this.
00:11:41.460 So this is not simply Donald Trump raising an issue, gosh, we want the Panama Canal.
00:11:46.840 Panama made a commitment when Jimmy Carter gave this away.
00:11:50.500 And they made a commitment, number one, that the Panama Canal would remain neutral,
00:11:55.280 that it would not allow another foreign power to have control over it, to have military access to it.
00:12:01.700 And number two, they made a commitment in treaty that they would charge fair and equitable fees.
00:12:10.080 Now, on the first point, we heard an enormous amount of testimony
00:12:14.780 that Panama has made a massive pivot towards China.
00:12:20.020 Listen, China is engaged in something called the Belt and Road Initiative,
00:12:23.840 where they're investing in ports and infrastructure all over the world,
00:12:27.580 and they're spending billions and billions of dollars trying to gain power over the United States.
00:12:32.660 And the Panama Canal is critical to U.S. national security and to our economy.
00:12:38.180 So on both ends of the Panama Canal, on the Pacific side and on the Atlantic side,
00:12:43.620 China controls, Chinese corporations control massive ports that are right there,
00:12:49.980 that give them access and give them the ability to observe all traffic going through the canal
00:12:56.740 and potentially to shut down all traffic going through the canal.
00:13:01.560 As I mentioned also in my opening, they are building a bridge across the canal.
00:13:06.480 They are spending over a decade building that bridge.
00:13:10.900 That bridge gives them the capacity, number one, to engage in surveillance of every ship going through the canal.
00:13:17.160 But number two, if, listen, we get to a time in the future where we're in serious conflict with China,
00:13:25.360 let's say a military conflict, let's say they invade Taiwan,
00:13:28.860 and we are suddenly at risk of a shooting war.
00:13:33.260 China has the capacity to shut down the Panama Canal, to use that bridge,
00:13:39.340 to use the ports on both ends to say we will allow no transit through that canal.
00:13:45.820 That would be enormously harmful to the United States.
00:13:50.140 And the point that was made in the hearing, that is directly contrary to the treaty Panama signed.
00:13:57.780 Secondly, Panama makes roughly $3 billion in fees from transit across the Panama Canal.
00:14:07.840 Seventy-five percent of those transits are American ships.
00:14:11.440 So they are either American cargo ships, commercial ships going across,
00:14:16.940 or they're American military ships, the U.S. Navy going across.
00:14:20.960 But either way, Panama is making billions.
00:14:24.400 And the testimony we heard in the hearing today is that on both of those grounds,
00:14:30.260 there is a strong argument that Panama is in violation of the treaty.
00:14:36.680 Now, what's interesting, Ben, I asked the international law professor who was testifying,
00:14:42.620 I said, okay, if Panama is in violation of the treaty,
00:14:47.700 number one, how is that determined?
00:14:51.420 And number two, what is the remedy?
00:14:54.160 On the question of how is that determined, the testimony we got today,
00:14:58.880 is the professor said, well, under the terms of the treaty,
00:15:02.460 each party determines unilaterally whether the other is in violation,
00:15:06.660 which means the United States has the ability to determine,
00:15:10.060 President Trump and this administration can determine Panama is in violation.
00:15:16.760 That is decisive.
00:15:17.980 And then secondly, the remedy.
00:15:19.740 Initially, when I asked the remedy, what the professor testified,
00:15:24.620 is that the remedy contemplated in the treaty was direct military action by the United States
00:15:31.640 to reassert its control.
00:15:33.380 I also asked, okay, if they're in violation of the treaty,
00:15:37.340 is there a potential to assert that the treaty is null and void
00:15:42.140 and the United States will reassert control?
00:15:45.360 On that question, he went back and forth,
00:15:48.100 but I will say that testimony, I think, gave enormous heft
00:15:53.480 to the points President Trump has been making.
00:15:56.300 So you look at this and you say, all right,
00:15:59.380 what are the options now for President Trump?
00:16:02.560 And then for Congress, because we can't get it back, right?
00:16:07.080 I've seen a lot of people like, well, did we just take this thing back?
00:16:10.040 We built it.
00:16:11.340 I don't think it's that simple.
00:16:12.820 Is that a fair point to make starting off?
00:16:15.500 You know, it's interesting.
00:16:16.660 You and I did a podcast early on when President Trump was talking about Canada,
00:16:22.240 Panama, and Greenland, and I put them on a spectrum.
00:16:25.240 I said, Canada, it ain't going to become the 51st state.
00:16:28.860 There, President Trump is just trolling Canada.
00:16:33.660 He's messing with Trudeau.
00:16:35.900 And by the way, his trolling of Trudeau probably cost him being prime minister.
00:16:41.800 I mean, it was perhaps the most epic troll in history.
00:16:46.100 Greenland, on the other hand, as we discussed at length on this podcast,
00:16:52.080 I think there's a very serious argument that it is in the United States' interest
00:16:57.460 to try to acquire Greenland, to try to acquire it, number one, for national security reasons,
00:17:03.240 because Greenland has a critical geographic location in the Arctic.
00:17:07.700 If, God forbid, we had a military conflict with Russia or China,
00:17:12.600 any ICBMs and any military attack would likely come over the Arctic.
00:17:17.040 Greenland is precisely situated to be able to intercept and combat that.
00:17:22.680 But also, Greenland has vast natural resources,
00:17:27.100 in particular rare earth minerals and critical minerals.
00:17:29.940 And so I think it is very much in our interest to pursue Greenland.
00:17:35.140 Now, I will say, a little over a week ago,
00:17:38.720 I had a long conversation with the Danish ambassador.
00:17:42.240 So Greenland is controlled by Denmark.
00:17:45.720 And the Danish ambassador was quite distressed,
00:17:48.620 because I've been very vocal, including on this podcast.
00:17:51.160 And so I got a call from the Danish ambassador.
00:17:53.700 What are you saying on verdict?
00:17:54.860 Which is an interesting...
00:17:58.060 Did your response was, go listen to it.
00:18:01.280 It's up there.
00:18:02.200 I did have a good laugh.
00:18:04.960 And the Danish ambassador is like, why are you attacking us?
00:18:08.480 And I said, listen, let me be clear.
00:18:10.960 You're a friend.
00:18:12.580 You're an ally.
00:18:13.980 I'm not remotely proposing military action against Denmark or Greenland.
00:18:19.040 But friends and allies can have real conversations.
00:18:22.600 And I think it is very much in our interest to acquire Greenland.
00:18:27.260 And the ambassador said, it's not for sale.
00:18:29.560 I said, well, everything's for sale.
00:18:31.540 And we're at least going to have a conversation,
00:18:34.540 because I think it is both in our interest and your interest to have that conversation.
00:18:38.720 And so that, we had a very direct, I think a very positive conversations.
00:18:43.240 And I expect over the next four years,
00:18:45.900 the Trump administration is going to press that discussion.
00:18:48.660 Now, at the time you and I did that podcast,
00:18:51.840 I viewed the Panama Canal as somewhere in the middle.
00:18:55.660 I said at the time, I said, we're not going to get it back.
00:18:59.020 But I think the president is negotiating over price,
00:19:03.300 negotiating to lower the prices of transit.
00:19:07.440 Now, I think that's still true.
00:19:09.100 I think the worst case outcome of this discussion
00:19:12.260 is we end up with a very significant reduction in the cost,
00:19:17.060 the price for American ships to transit the Panama Canal,
00:19:20.960 both commercial ships and U.S. Navy ships.
00:19:23.680 That's a very good outcome.
00:19:25.280 I also think it is very likely we will see a significant diminution
00:19:29.520 in China's control and influence over the Panama Canal.
00:19:35.000 That is a massive benefit.
00:19:37.040 But I got to say, after this hearing today, I've moved.
00:19:40.800 I actually think the treaty arguments here are quite serious.
00:19:46.260 And I get Panama would be horrified to give up the canal
00:19:52.040 because they were given a gigantic gift from Jimmy Carter
00:19:55.680 at the expense of the United States of America.
00:19:58.920 But I think the arguments that Panama is violating the treaty
00:20:02.360 and has forfeited its right to the canal,
00:20:04.200 I think those arguments are very serious,
00:20:07.100 and I expect the administration to pursue them seriously.
00:20:11.160 Canadian women are looking for more.
00:20:13.260 More out of themselves, their businesses,
00:20:15.260 their elected leaders, and the world around them.
00:20:17.420 And that's why we're thrilled to introduce
00:20:19.040 the Honest Talk podcast.
00:20:21.180 I'm Jennifer Stewart.
00:20:22.340 And I'm Catherine Clark.
00:20:23.580 And in this podcast, we interview Canada's most inspiring women.
00:20:27.380 Entrepreneurs, artists, athletes, politicians, and newsmakers,
00:20:30.640 all at different stages of their journey.
00:20:33.080 So if you're looking to connect, then we hope you'll join us.
00:20:36.300 Listen to the Honest Talk podcast on iHeartRadio
00:20:38.700 or wherever you listen to your podcasts.
00:20:42.280 Let's talk about also the contraband, in essence,
00:20:44.980 that's going through there.
00:20:45.960 Iran and China really getting a grand deal,
00:20:48.820 but also the idea that we don't know what's going through there
00:20:51.320 on those ships.
00:20:52.240 How concerned are you about that?
00:20:54.320 And could this also bring that into perspective
00:20:58.340 where Panama says, hey, we can't do this right now.
00:21:01.220 We're under too much of a spotlight.
00:21:03.480 Well, look, that is a very real problem.
00:21:05.840 So, for example, Panama has flagged multiple ships from Iran,
00:21:10.540 from their ghost fleet,
00:21:11.620 the ghost fleet that they're using to transit oil.
00:21:15.800 And Iran has-
00:21:18.020 Let's give a definition, by the way, of a ghost fleet
00:21:19.920 for people that don't understand what that means.
00:21:21.600 So, there were, in law, massive sanctions on Iran selling oil.
00:21:28.040 Under Joe Biden, he essentially refused to enforce those sanctions.
00:21:32.320 And so, Iran used a ghost fleet to get around those sanctions.
00:21:36.340 It was ships that were operating under foreign flags
00:21:41.140 that were basically hiding from the sanctions regime.
00:21:45.120 By the way, I think that's one of the most significant things
00:21:47.520 the Trump administration is going to do
00:21:49.960 is re-impose those sanctions on Iran and cut off their revenue.
00:21:55.560 Joe Biden and the Democrats basically gave $100 billion
00:21:58.420 to the Ayatollah who's chanting,
00:22:02.080 death to America and death to Israel.
00:22:04.200 And I believe that that has ended on January 20th,
00:22:07.460 and it should end.
00:22:08.980 Panama was complicit in that.
00:22:10.400 They were part of that endeavor.
00:22:12.620 And by the way, Panama also made a very deliberate decision
00:22:16.520 to pivot towards China.
00:22:18.740 So, for example, several years ago,
00:22:21.220 Panama severed diplomatic relationships with Taiwan
00:22:26.020 and instead embraced China.
00:22:29.320 And they did so at the same time that China was making massive investments
00:22:34.560 in the ports on both ends of the canal.
00:22:37.480 And understand, the way China does this,
00:22:40.080 the Chinese government subsidizes those investments
00:22:43.880 so that no American company can outbid them
00:22:47.400 because the Chinese government is essentially subsidizing them.
00:22:51.160 They're not doing it for economic purposes.
00:22:53.180 They're not doing it because it makes business sense.
00:22:55.780 They're doing it for strategic purposes
00:22:57.920 because China wants to control the Panama Canal.
00:23:01.480 Now, I get why the Chinese Communist government wants to do that.
00:23:04.420 But Panama letting them do that
00:23:07.820 is, I believe, in direct violation of the treaty.
00:23:11.260 And that's what the hearing was about today.
00:23:13.940 Final question on this.
00:23:15.500 Moving forward, how quick will there be movement on this issue?
00:23:19.620 Look, I don't know.
00:23:21.000 I think this hearing was important today.
00:23:25.080 And I'll tell you what I thought was most significant.
00:23:28.260 So I called the hearing.
00:23:29.740 And as chairman, I can call a hearing on any topic I want.
00:23:33.060 I didn't know how the Democrats would react.
00:23:36.540 I didn't know if the Democrats would show up at the hearing
00:23:38.960 and begin screaming and saying,
00:23:42.260 Trump is a lunatic and how dare he do this.
00:23:44.660 I didn't know what they would say.
00:23:47.060 The most interesting thing about the hearing today
00:23:49.820 is the Democrats, almost every Democrat,
00:23:53.040 echoed the points that you and I have been making,
00:23:55.280 that China has far too much influence
00:23:57.420 over the Panama Canal,
00:23:59.540 and also the Panama Canal is charging excessive fees.
00:24:04.460 I'm not sure what that means,
00:24:05.800 but it surprised me.
00:24:07.740 We did not have,
00:24:09.400 I sort of anticipated
00:24:11.040 some long Democrat speeches
00:24:14.100 about how Trump is a crazy man.
00:24:17.020 We didn't get any of that.
00:24:18.600 And I think that was a very interesting,
00:24:20.560 particularly the Chinese influence on the Panama Canal.
00:24:23.760 Now, there was very significant bipartisan agreement.
00:24:28.060 I think that's a very promising sign.
00:24:30.540 All right.
00:24:30.780 Well, then we got to use that bipartisan sign
00:24:32.860 to move into topic number two,
00:24:34.700 and that is Donald Trump was a big proponent
00:24:37.920 of taxes going away on tips.
00:24:42.660 Now, this is a very big issue in the campaign.
00:24:46.980 He got a lot of traction with a lot of Americans
00:24:50.500 that work hard,
00:24:51.560 part of their salary is tips.
00:24:53.480 Not having taxes on those tips
00:24:55.340 would be huge for American workers
00:24:57.580 and also our economy.
00:25:00.020 So this is something that has come back up again
00:25:03.100 where Donald Trump's trying to pay off on this.
00:25:05.540 The question is,
00:25:06.660 what's going to happen with Congress on that?
00:25:09.240 And before I get to that,
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00:26:39.240 All right, so taxes, tips,
00:26:42.100 it was clearly a big campaign issue.
00:26:44.240 It brought in a lot of voters.
00:26:45.940 A lot of people came to Donald Trump
00:26:47.340 and said this could have a huge impact.
00:26:49.560 Now it's paying off on it.
00:26:51.260 Is there a real chance?
00:26:53.960 So yes, and I believe this will happen.
00:26:56.180 This will happen by the end of the year.
00:26:58.060 So let's rewind.
00:26:59.880 In the middle of the presidential campaign,
00:27:02.260 Donald Trump was in Las Vegas, Nevada,
00:27:04.880 and he actually told us a story.
00:27:06.680 So he came by in the middle of the campaign.
00:27:08.800 He had lunch with all the Republican senators.
00:27:10.980 And he said, listen, I was in Vegas.
00:27:12.400 I had a rally that night.
00:27:13.820 And he said, I was having lunch.
00:27:15.500 And he said, there was a waitress who came.
00:27:17.640 It was, you know, serving me my meal.
00:27:20.200 And he said, she began like complaining
00:27:23.040 about the enormous burden
00:27:25.020 that the Biden administration had put
00:27:27.020 on recording her tips,
00:27:28.640 on paying taxes on tips.
00:27:30.220 And he said, I pulled out a piece of paper,
00:27:32.340 and I got out a pen and I just wrote,
00:27:35.160 no taxes on tips.
00:27:38.420 He said, it's just an idea that popped in my head.
00:27:40.700 And he said, look, some people,
00:27:42.540 they focus group things.
00:27:44.400 They do white papers.
00:27:45.340 He said, I didn't do any of that.
00:27:46.800 I just wrote it down from the conversation
00:27:49.500 I had with the waitress over lunch.
00:27:51.320 And he said, I had that rally later in the day
00:27:53.460 and I had thousands of people there.
00:27:55.320 And he said, I just threw it out there.
00:27:57.820 No taxes on tips.
00:27:59.320 And he said, and they went crazy.
00:28:01.720 They went absolutely crazy.
00:28:05.200 And I got to say, there are times
00:28:07.120 when Trump, I just think, has an instinct
00:28:09.380 that is a very good gut instinct.
00:28:14.580 And I think this policy makes enormous sense.
00:28:17.640 And so when he announced it,
00:28:19.820 he's right, the crowd went crazy.
00:28:21.540 I looked at it and I said, this is a great idea.
00:28:25.420 I immediately went to my team and I said,
00:28:27.360 let's draft the legislation to make this happen.
00:28:30.380 So the next week, I filed federal legislation
00:28:33.540 of no taxes on tips.
00:28:35.460 Now, what's interesting, Ben, is when I filed this,
00:28:38.860 it immediately became bipartisan.
00:28:41.980 Both senators from Nevada,
00:28:44.600 Jackie Rosen and Catherine Cortez Masto,
00:28:47.320 both of them immediately co-sponsored it.
00:28:50.220 One of them said to me, she said,
00:28:51.600 look, in Nevada, 25% of the employees
00:28:57.200 in the entire state are tipped workers.
00:29:00.120 And so it was bipartisan.
00:29:02.280 And then shortly thereafter,
00:29:03.960 Kamala Harris endorsed it.
00:29:05.160 And she said, this is a great idea.
00:29:06.680 So it became, there was enormous bipartisan support.
00:29:10.380 Now, obviously Trump has won.
00:29:12.820 We have a Republican Senate, Republican House.
00:29:15.060 I've refiled my legislation.
00:29:17.480 Here's what I'm pressing to happen.
00:29:18.880 So Trump just was back in Nevada, in Las Vegas,
00:29:22.660 just made a huge push to pass this.
00:29:25.740 I am pressing for Congress to pass the legislation right now.
00:29:31.000 It doesn't have to be part of budget reconciliation.
00:29:35.920 Now, for any tax bill under the Constitution,
00:29:40.400 the House of Representatives has to originate it.
00:29:42.840 So if that's a provision of the Constitution,
00:29:44.760 the Senate cannot start a tax bill.
00:29:48.360 A tax bill has to originate with the House.
00:29:51.440 So I am urging the Speaker of the House,
00:29:53.740 I'm urging the Majority Leader,
00:29:55.840 take up my legislation,
00:29:57.680 no taxes on tips,
00:29:59.200 just pass it.
00:30:00.520 We have the votes in the House.
00:30:02.760 Republicans can pass it.
00:30:04.500 If it passes and goes over to the Senate,
00:30:07.300 I believe we can pass it in the Senate,
00:30:10.140 and I think we'll get 60 votes.
00:30:11.440 So we don't have to wait for reconciliation.
00:30:14.000 Reconciliation is the process that gets around the filibuster,
00:30:19.140 lets us pass something with just 50 votes.
00:30:21.500 I don't think we need that for no taxes on tips.
00:30:25.120 If the House passes it,
00:30:27.200 what I'm urging John Thune,
00:30:28.800 the Senate Majority Leader,
00:30:29.800 is put it on the Senate floor.
00:30:31.340 I think we'll get 60 votes,
00:30:33.040 and that means we could pass it.
00:30:34.500 It would be a big bipartisan win,
00:30:37.900 and we'll put it on President Trump's desk.
00:30:41.540 He can sign it into law as a huge victory.
00:30:44.620 And by the way, it's a win-win, Ben.
00:30:46.820 If we put it on the floor,
00:30:48.880 and Democrats decide to be partisan,
00:30:51.900 they decide, okay, we're going to oppose it,
00:30:53.780 because we just oppose any tax cut,
00:30:56.060 we oppose anything Trump wants.
00:30:58.120 Okay, that's not the end of the day.
00:30:59.780 If Democrats defeat it in the Senate,
00:31:02.320 because we can't get to 60,
00:31:03.840 that's fine.
00:31:05.120 Then we'll stick it in budget reconciliation.
00:31:07.720 We can get it done with 50.
00:31:09.080 But it's a win-win,
00:31:11.040 because every Democrat senator who votes no,
00:31:14.220 that is an ugly issue in two years
00:31:16.760 to go face the voters and say,
00:31:18.760 hey, I voted against no taxes on tips,
00:31:21.820 even though every waiter,
00:31:24.280 every waitress,
00:31:25.180 every bartender,
00:31:26.520 every taxi driver,
00:31:27.600 every Uber driver,
00:31:28.740 every barber,
00:31:30.760 every hairstylist,
00:31:32.020 every nail salon person,
00:31:34.040 everyone who is relying on tips
00:31:36.180 cares a lot about this.
00:31:38.180 So if the Democrats all want to vote against it,
00:31:40.560 look, I think this policy
00:31:42.900 is an incredible embodiment
00:31:45.880 of the most important political transformation
00:31:48.820 of the last decade,
00:31:50.320 which is that Republicans have become
00:31:52.840 a blue-collar party.
00:31:54.800 We are the party of waiters and waitresses
00:31:57.440 and working men and women.
00:31:59.320 And so Democrats can decide where they stand,
00:32:02.000 but I think we ought to get this passed.
00:32:04.080 And one way or another,
00:32:05.220 my prediction is this will get done
00:32:07.760 before the end of 2025.
00:32:10.680 Is this one of those issues
00:32:11.820 where people should call their congressmen,
00:32:13.960 their senators?
00:32:14.480 I mean,
00:32:14.600 we talk about this a lot.
00:32:15.800 Yes, yes, yes.
00:32:16.420 I mean,
00:32:16.780 and what do you say?
00:32:18.480 This is good for my state.
00:32:20.100 This is good for my city.
00:32:21.260 This is good for hourly workers.
00:32:22.760 What is the best argument?
00:32:23.960 Just pass no taxes on tips.
00:32:27.240 So look,
00:32:27.820 one of the things to understand
00:32:28.940 when you call your congressman,
00:32:30.200 when you call your senator,
00:32:33.340 if you make a detailed,
00:32:36.040 subtle argument,
00:32:37.380 that doesn't get through.
00:32:39.820 So every member of Congress
00:32:41.640 gets what I get every day,
00:32:42.960 which is I get an email.
00:32:44.940 So all right,
00:32:45.520 let me find my email from today.
00:32:47.780 Call totals.
00:32:48.360 So 128-25.
00:32:50.920 Today,
00:32:51.760 there were 1,372 calls
00:32:53.980 to my office.
00:32:55.860 There were 754 to D.C.
00:32:58.320 There were 618 to Texas.
00:33:00.960 There were 482 live calls.
00:33:03.900 So we had interns
00:33:04.820 and staff assistants
00:33:05.740 who answered 482 calls today.
00:33:08.540 There were 890 calls
00:33:10.260 that went to voicemails.
00:33:11.900 Of those calls,
00:33:13.660 1,322 Texans called.
00:33:17.200 50 non-Texans called.
00:33:18.800 So overwhelmingly,
00:33:20.480 the calls were Texans.
00:33:22.760 So let's break it down.
00:33:24.760 Casework.
00:33:25.280 So that's,
00:33:26.180 I've got an issue
00:33:26.940 with Social Security.
00:33:27.680 I've got an issue
00:33:28.200 with the VA.
00:33:28.760 I've got an issue
00:33:29.580 with the government.
00:33:30.700 45 of those calls
00:33:31.880 were casework.
00:33:32.560 And I've got a whole team
00:33:33.580 that works to help Texans
00:33:35.420 deal with the government
00:33:36.100 every day.
00:33:37.580 24 dealt with the academy.
00:33:39.420 So young men and women,
00:33:41.000 high school students
00:33:41.800 that want to go
00:33:42.860 to service academy.
00:33:43.740 So 24 of them.
00:33:44.640 8 concerned the campaign.
00:33:46.780 I don't know
00:33:47.080 what they concerned.
00:33:48.400 91 concerned scheduling.
00:33:50.260 So people calling saying,
00:33:51.440 hey, can you come
00:33:52.140 and do this event
00:33:52.860 or this other event?
00:33:55.620 Now, of the breakdown,
00:33:58.440 18 called in support of me.
00:34:01.980 28 called in opposition to me.
00:34:04.060 So people called and said,
00:34:05.180 I can't stand Cruz.
00:34:06.420 He's terrible.
00:34:07.060 Okay, that gets recorded.
00:34:08.620 10 people called in support
00:34:11.560 of President Trump.
00:34:13.400 79 people called in opposition
00:34:15.560 to President Trump.
00:34:16.960 Now, nominations.
00:34:19.060 75 people called in support
00:34:21.400 of President Trump's nominees.
00:34:24.480 70 people called in opposition
00:34:26.340 to President Trump's nominees.
00:34:28.780 Now, it's interesting.
00:34:29.640 RFK Jr. got a bunch of calls.
00:34:32.480 187 people, this is yesterday,
00:34:34.760 called in support of RFK Jr.
00:34:37.160 for HHS secretary.
00:34:39.300 93 people called in opposition
00:34:41.540 to RFK Jr.
00:34:43.580 So about two to one,
00:34:44.900 Bobby Kennedy,
00:34:45.760 the calls were coming in.
00:34:47.780 19 people called in support
00:34:50.100 of Kash Patel for FBI director.
00:34:53.180 432 people called in opposition
00:34:57.320 to Kash Patel as FBI director.
00:34:59.920 And I think there probably
00:35:01.000 were some liberal groups
00:35:02.720 stirring up calls
00:35:03.780 because that number is big enough,
00:35:05.320 432.
00:35:05.820 I was going to say,
00:35:06.580 when you see days like that,
00:35:08.000 you've got to be thinking
00:35:09.180 somebody went on an email campaign
00:35:11.240 or a call blitz campaign
00:35:12.620 and said,
00:35:13.040 target this member today specifically.
00:35:16.320 Because if it doesn't match
00:35:17.400 the day before or the day after,
00:35:18.760 that's kind of the tell, right?
00:35:20.420 And that happens.
00:35:21.340 There are groups that will focus
00:35:22.520 and say, make these calls.
00:35:23.880 And I think those calls,
00:35:25.240 the 432,
00:35:26.160 that's a big enough number.
00:35:26.980 That's where that probably came from.
00:35:28.920 Now, in addition,
00:35:30.620 48 people called
00:35:32.040 in support of Tulsi Gabbard.
00:35:35.220 22 people called
00:35:36.600 in opposition to Tulsi Gabbard.
00:35:39.540 On legislative issues,
00:35:41.360 13 people called
00:35:42.520 in support of border security.
00:35:44.540 Two people called
00:35:45.680 in opposition to border security.
00:35:47.300 And interestingly enough,
00:35:49.700 474 people called
00:35:52.260 in opposition
00:35:53.860 to the OMB pause
00:35:55.960 of federally appropriated funds.
00:35:58.260 So, look,
00:35:59.620 that's the sort of report.
00:36:01.080 I get that report every day
00:36:02.120 and I read it every day.
00:36:03.440 Now, look,
00:36:05.360 we get over the course of the year
00:36:07.500 hundreds of thousands of calls.
00:36:10.040 So, I can't listen
00:36:11.440 to every voicemail that comes in.
00:36:12.900 I could literally spend
00:36:13.980 all day long
00:36:15.000 doing nothing
00:36:15.900 but listening to voicemails
00:36:17.060 and not do any hearings,
00:36:18.120 not do any legislation
00:36:18.960 and I still wouldn't
00:36:20.320 have enough time.
00:36:21.540 So, the way I consume
00:36:23.080 that data
00:36:23.640 is through a report like that.
00:36:24.920 I just read you the report
00:36:26.080 that came today.
00:36:28.320 Every other member
00:36:29.200 consumes it the same way.
00:36:31.240 What I'm saying is
00:36:32.680 if you want Congress
00:36:34.040 to pass
00:36:34.660 no taxes on tips,
00:36:37.420 you don't need to present
00:36:39.180 a long, detailed,
00:36:40.700 subtle argument
00:36:41.420 as to all of the pros and cons.
00:36:43.240 Just pick up the phone
00:36:44.320 and call your member
00:36:45.100 and say,
00:36:46.160 pass no taxes on tips.
00:36:49.040 If you say that sentence,
00:36:51.120 it will get recorded
00:36:52.260 in a report
00:36:53.220 just like that
00:36:54.240 to the House member
00:36:55.580 or the Senator
00:36:56.100 you're calling.
00:36:57.260 That's how the information
00:36:58.520 gets consumed.
00:37:00.220 That's encouraging,
00:37:01.280 by the way.
00:37:01.640 You said everybody
00:37:02.280 looks at their call list
00:37:03.520 like the same way you do.
00:37:04.640 I hope so.
00:37:05.520 I don't know that.
00:37:06.860 There may be some people
00:37:07.860 that don't give a damn.
00:37:08.780 I look at it every day.
00:37:10.060 I can't promise
00:37:11.200 that all 535 members
00:37:13.300 of Congress do,
00:37:14.020 but I certainly
00:37:14.560 look at it every day
00:37:15.380 because I work
00:37:16.520 for 31 million Texans
00:37:18.040 and so I want to see
00:37:19.100 what issues people
00:37:20.720 are engaged on
00:37:21.720 and what they care about.
00:37:23.240 It's incredible.
00:37:24.280 Don't forget,
00:37:25.140 call your congressman,
00:37:26.040 call your senator.
00:37:27.320 It can make a huge difference,
00:37:28.680 especially during confirmations
00:37:30.000 and on issues like taxes
00:37:31.520 on tips going away.
00:37:33.480 We do this show
00:37:34.080 Monday, Wednesday, Friday
00:37:35.000 to give you this exact
00:37:36.100 type of information.
00:37:37.000 So make sure
00:37:38.120 that subscribe button,
00:37:39.780 auto-download button
00:37:40.940 and share it on social media.
00:37:43.900 A lot of people right now
00:37:45.040 are looking for answers
00:37:46.360 with all the changes
00:37:47.780 in Washington
00:37:48.460 and it makes
00:37:50.120 a massive difference
00:37:51.120 when you guys
00:37:51.920 share this podcast
00:37:52.940 on social media
00:37:53.820 and also when you write
00:37:54.840 us a five-star review.
00:37:56.600 And The Center
00:37:57.000 and I will see you back here
00:37:58.080 Friday morning.
00:37:59.720 This is an iHeart Podcast.
00:38:02.600 Guaranteed Human.