Verdict with Ted Cruz - The Legal Basis for Retaking the Panama Canal, plus No Taxes on Tips is Happening

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. 0.65

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. 0.98

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. 0.86

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. 1.00

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00:20:36.300 Listen to the Honest Talk podcast on iHeartRadio

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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, 0.94

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- 0.83

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. 0.99

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, 0.76

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, 1.00

00:23:42.260 Trump is a lunatic and how dare he do this. 1.00

00:23:44.660 I didn't know what they would say. 1.00

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 1.00

00:24:14.100 about how Trump is a crazy man. 1.00

00:24:17.020 We didn't get any of that. 0.99

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,

00:25:10.260 I want to tell you about our friends

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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 0.57

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. 0.97

00:34:06.420 He's terrible. 0.98

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. 0.90

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.

Verdict with Ted Cruz - January 29, 2025

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

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