tv Senator Tom Cotton Discusses the Future of the Republican Party CSPAN November 19, 2016 10:40pm-11:06pm EST
static revenue basis, $200 million on a dynamic basis, taking in the growth facts. are you prepared to add to the debt of the united states to pass tax reform? rep. brady: we have designed the blueprint to break even within the budget, considering the economic growth -- we think it is the right approach. paul: dynamically scored. rep. brady: look, we're going to lose revenue in the early years and we will make it back in the next five years and we will work on that and it is the right approach. but i've also said from day one, we said, we will not leave growth on the table. if we are off a dime or so on the tax, we want a tax code built for growth. paula: how is the freedom caucus
going to react to the fact that you are adding to the debt? rep. brady: we recovered fairly quickly in the 10 year window and also i think that anybody recognizes, if we want to continue these deficits, except the slow growth economy. our kids will have the deficits continue. we have got to restrain spending, just like in business. two things you have to do. restrain spending and grow the revenue. that is where the tax reform is so critical long-term to getting our financial house in order. paul: you will move it right out of the box? rep. brady: soon as we can. we unveiled the timetable in june, the morning after europe -- or britain voted to leave the european union. so no one saw that press conference, including my family. [laughter] brady:: so we want the
feedback. we will be listening and improving for the rest of the year, working with the trumpet administration on tax reform. we want to test drive the blue prepared our point is, do not take one provision out of it and test drive it like it is an old car like we are ready today. we are proposing a new car, it has different features and it drives much faster. so to test drive this blueprint, we will have feedback. and we also have a transition from the old clunker to the new tax cut, so it is important to have that feedback as well. paul: ok, let's move on to health care which is also your portfolio. do you endorse the universal tax
credit, the refundable tax credit for anybody with health care for who wants to buy it on the individual market? rep. brady: i do. i think it is actually important, may the most important part of insuring every american has the freedom to buy the health care they need to and to take it with them throughout their lifetime. because house republicans, without bringing in new taxes, we have to unlock the current tax break that you get at work to carry that health care plan with you from job to job. state-to-state. home-to-home. and we would argue, if the health care plan, the health care backpack works for you into your retirement years and having the freedom to get help you have now at work, to take with you, is pretty critical. paul: as you approach the aca repeal, you want to the repeal
it, i assume. what are the key elements, , opening the guarantee up insurance across state lines, you would do all that? rep. brady: repeal the mandate and literally, there are 159 federal agencies essentially between you and your doctor. it is one of the drivers of why this thing cannot just simply be tweaked. you have to start over. and i also think it is important to retain some of the items that actually we think of strong public support. letting kids stay on the health care plan until 26-years-old. pre-existing illnesses, a lifetime cap. because if you got a disease early in life, you will bust through those early. paul: so, did we not have the
problem of pre-existing conditions before, finding hard to actually write those, isn't that close to what the president proposed? rep. brady: no, we take a different approach. because the president tried, unsuccessfully, to force everybody into insurance that they did not want and cannot afford. today, we have a situation where the insurers are not coming back to the market, the premiums are not coming down and the networks, you will not have a broad range of hospitals and doctors. so that cannot be fixed. we believe the challenge is to get the incentives right and have a simple and clear incentive where americans understand that after they leave their parents' healthcare, and if they make that good faith effort to keep minimal coverage at least through their lives, when they do get cancer or a horrible action occurs, that they can get affordable coverage without the huge rate's like. i think in the republican plan would get the incentives right for americans to want to be
covered with affordable health tailored to them. paul: it will your goal be to create an individual marketplace that will allow the seamless movement from employer-sponsored care, equalizes the tax treatment between employers and individuals? rep. brady: it is important to keep employer-sponsored health care. that is where 150 million americans -- paul: you do not want to people into the individual market? rep. brady: no. but we want them to be able to unlock that so americans will be able to take it with them for those that are not working for a company that offers that health care, we need to be of what to get people to freedom to pick a plan that is right for them to take it with them throughout her lifetime. we think that is the most streamlined and conservative approach. paul: is medicaid going back to the states? rep. brady: yes, it it has to. paul: why does it have to?
rep. brady: the cost is unsustainable. when i was in the texas legislator, i think this was 4% of the budget. today it is 30% and growing. so when president obama essentially said, the solution to the big problem is to make the problem bigger, do more medicaid for more people at a higher cost, he exacerbated the problem. so now republicans have taken a different approach and we decided it was not enough to simply replace that, we need to fix and create 21st century health care reform. in a bigger way. and so medicaid, giving states the flexibility to design it further states we think is critical. paul: do you send it back with a block at grantor with a payment per beneficiary? rep. brady: we will give the option. there is strengths for both of them and depending on the size of the state, the demographics,
you might want to one or the other. paul: we spoke with the democratic governor of rhode island and she said it might work, but i need enough money. because they have a small state and a big growing population on medicaid. rep. brady: i think having the second option, which is per capita, it goes with the population and it may be more flexible for the governor. paul: what about medicare? donald trump did not talk about it during the campaign, so that, is it on the table for the premium support plan that your caucus has supported? rep. brady: it has to be in a better weight solution on health care, we lay out steps to save medicare for the long-term, which is, it is not the 800 pound gorilla in the budget, it is the 800,000 pound gorilla. you will not save it for the long term by just cutting
benefits. you have to redesign it. paul: you are already doing tax reform and replacing the aca, so if you put medicare on the table, that is a very heavy political lift. rep. brady: the trick is not the do all the in the afternoon. [laughter] paul: you organ away until next thursday? -- you are going to wait until next thursday? rep. brady: there is what is different. because of the leadership of paul ryan and our leadership in the house, they are pushing us in an agenda to put forward these issues and we have them in place and ready to be acted upon. you know we want to know from , the president what the priorities are, but as we are speaking right now, we are theing the tax, and legislative language for the major reforms, because you cannot talk about health care if you do not also talk about medicaid and a solution to save medicare. paul: have you spoken to the president-elect and his team about that?
rep. brady:: the answer is no. they have been focused, rightly i think, on tax reform and health care issues and it has only been a week. it has only been a week, so we will have the opportunity. paul: we will talk about trade bid the president-elect proposed putting tariffs on american -- and the goods from american companies if they move operations overseas, if they try to sell those goods back into the united states. he mentioned ford motor quite a bit. do you support that kind of a policy on companies back overseas -- that go overseas? rep. brady: if the president wants to grow the economy and he sincerely does, you need to get the tax code right and you need to balance relation, but we need more customers around the world. you need to get trade right as
well. i think it is critically important that he gives us a chance to make the case that done right, strictly enforcing trade agreements is incredibly important to turn one way trade in the u.s., turning trade back to it. two-way trade. not toce would be withdraw from the tpp, not to withdraw from nafta take the opportunity to make those agreements better. we have given this president and and the new one tools. i hope that he will take a broader view on tariffs like that to drive up costs, i hope he takes a couple approach to all of that. a good thoughtful approach to all of that. paul: you mentioned tpp, that seems to be dead.
would you concede that? rep. brady: i would say it is on hold. paul: on hold? rep. brady: it is not enough to simply buy a american. we have to sell a american throughout the world. and the asia-pacific region will hold half of the middle class customers on the planet by the end of the decade, so we want to be in there. if we withdraw, our economy will suffer. so, i am hopeful that the new president gives us a chance to make the case to keep what is good in trade and create jobs and fix what is perceived to be bad and there is plenty in that area to tackle with his skills. he could do very well. paul: there is a lot of discussion about the new republican coalition and how do you reach, how does the congress, other than by increasing growth, appeal to americans that have not been as well as those in this room? trade is one way that the president-elect has tried to do that.
do you think you have to move in some way on trade in order to satisfy that message because set up? i am talking about restrictions, tariffs, some people are talking about an import license. that has been loaded by some economists. rep. brady: tariffs tend to punish the american consumers for the behavior of other countries. it tends to boomerang back on the u.s., which is what any pro-growth administration does not want to do. by, he has got some tools on enforcement that he could drive -- paul: what do you think he could use? rep. brady: on the enforcement side, they could be more
streamlined. use that. at the wto, america has won about 17 cases through the wto. other 18. but i would advise this -- let's go after china for investment violations. but i would say president bush , started the treaty with china and the obama administration continued it. i would think it would be terrific for the donald trump administration to finish it, because those bilateral trade and investment protections that we have been fighting for a long time -- so, if you have a big problem, my advice is to go straight at the problem. and i think that is the way, with his negotiating background skills, donald trump could make a difference. paul: ok. opening it up to the audience. any questions, anybody have a question? >> that you can send the
monotony ipad, at it is better if you raise your hand and identify yourself. so we can pin you and your company in the world press. [laughter] paul: we have one over here john. >> anybody want to follow up on tpp being on hold? >> thank you for your comments. my question is about health care. one thing missing with the affordable care act, when people have a choice, where did they go? rep. brady: having the aca card does not make coverage. you have got very expensive and shirts with huge out-of-pocket deductibles and a very narrow network. that is because of the design. to the point, if you think that there are simple fixes to this, to save it, it is not. is,of the indicators i use if you look at the number of
americans in a state that are required to take aca insurance and get money to do it, how many take it up in states like new york, for example. nearly four out of five new yorkers have figured out a way not to be covered by the aca, so a huge red flag for those who think they can just fix it. the republican blueprint envisions getting the incentives right, so those americans can have an insurance plan that is right for them at that point in their life. the portability to take it with them and their situation and change that plan of there is another need that they have. and not just that plan. when you talk about the concept of health care backpack, what we're talking about is, what are the tools americans need in the 21st century? we need a health care plan tailored to them and to be able to afford it and take it with them. they need it easy access to control of their medical records, to give the new doctor and hospital.
and aen the easy and affordable way to save for the day-to-day expenses. we think that concept of giving americans the freedom to have those tools in a world different than it was 30 years ago, is critical to that access issue. >> another question over here. dog, -- >> i am from amway corporation. we will take the bait. we are curious about how it moves forward. hearing that it is dead makes is a bit anxious. but we are curious on how it will move forward and hearing it is dead makes us nervous. so we are interested in the overall trade policy and doing what is right in the long term. rep. brady: republicans will continue to support the freedom to trade, to sell and compete anywhere in the world with as little government interference
as possible. that is one of the key principles of our party and the heart of free enterprise. my advice to the new president will be to take a look at the transpacific partnership and keep, do not withdraw, renegotiate. keep what is good and there is plenty to level the playing field in a way for that region. renegotiate, fix the problems that exist today, and let's find a way to move forward. because i think with taxes and reform and with balanced regulation and access to more customers, that will grow the united states economy for the long-term. paul: chairman brady, have you , it has only been a week since we have had the president-elect. will that be an acceptable approach? rep. brady: no winking and not in yet.
this team is moving incredibly fast for the first seven days. we have a lot of discussions on health care and tax reform. >> another question in the back. >> good morning. a question around pricing of drugs and provider services in health care. any thoughts on that? rep. brady: anymore specific? >> medicare part b, medical or d,t d -- medicare part negotiations with drug manufacturers and talk about that during the election. rep. brady: in a greater price controls, i think it would be a mistake. even negotiation on the prices for those cost schedules. taking the bottom line is taking that approach ensures patients will not get the cutting-edge technology. they will be limited in their access. it is a very simple formula. if you want to go that approach, the v.a. approach, we can for
seniors, but just know that you won't getting the full range of medical opportunities. you will be limiting your access. i don't think we want to go that direction. at the end of the day, it is still competition. it is still much faster timetable to the marketplace. competition in prescription medicines drives down prices. that is the approach we ought to go. paul: we've got one more. we are approaching the end. reporter: one of the elements of your tax plan that mayor giuliani mentioned his border adjustability. it is mostly with indirect tax systems. you are talking about trying to apply it to an income tax system. any further developments? rep. brady: we are proposing to move from an income tax for businesses based on where you produce to a casual tax a stub -- to a cash flow tax based on
where you consume. here's the point. today, an american-made technology product is a disadvantage here and abroad. we propose to take taxes off american products being exported, put them on products being imported. that has three huge impacts. one, it ensures quality -- price based on quality, not the tax code. two, it allows us to signify the tax code. -- simplify the tax code. it eliminates any tax incentive for companies to move jobs, research, manufacturing headquarters overseas. in fact, just the opposite. it creates huge incidents to bring that investment back, and that's part of our goal. paul: thank you, mr. chairman. thank you, ladies and gentlemen. appreciate you coming. [applause] [captions copyright national cable satellite corp. 2016] [captioning performed by the
national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> also at the wall street journal ceo council meeting, tom cotton discussed the election of donald trump and trade policy. this is 25 minutes. ♪ >> good morning. i'm am here with superstars senator tom cotton. >> if i am a superstar, the firmament must be very dark. >> this is the them saying he said the gop would be very different from the other fathers. >> for the record, my father is a lifelong democrat. a shift in the last eight years. >> i know we want to talk about
donald trump and his influence in the party. before that, it struck me as i was thinking about this panel just how much the republican party has changed itself over the past 10 years, prior to donald trump even coming on the scene. i mean i have covered politics , most my adult life. moves down here more than 10 years ago. and that was the party that got thrown out of the house in 2006. we had the rise of the tea party, we have had all of these primaries, we have had this culminating in your class in the senate in which the republicans took over. what are the big differences in your mind between today's republican party and the one just 10 years ago? we talking about the party in isolation from donald trump. sen. cotton: we have changed a lot in the last 10 years. you can look at some of the aces
in the party. 10 years ago this sunday, i reported to iraq with the airborne. there are a lot of senators in the selection -- this election like joni ernst or dan sullivan or cory gardner who were not involved in politics at all 10 years ago. i think a lot of us who came in to politics in the last three or four elections have learned some of the lessons of things that went wrong in the 2000. i think our party both in grassroots and in congress is more of a pro-market party rather than it pro-business party. we are focused on the operation of markets in the free enterprise system. we celebrate businesses that succeed, but we recognize in a market-based system, we're not there to put our thumb on the scale for this or that industry. we are there so that people who have good ideas and companies that are well run will succeed in the marketplace. we have gone back to a real focus, too, on the constitution and the constitutional structure of our government. and getting back to constitutional basics.
and i'm not talking primarily on individual liberties. i'm talking about the structure of our government and the need to rein in executive agencies and the need to return some structural balance between washington and the state government. i think those are a few of the big differences you have seen over the last few years. as we have been in the wilderness for eight years. irrespective of donald trump's victory in this election year. >> eu say your party is more based on ideas? i remember you canvassed 100 republicans, about 99 of them did not know anything about health care policy for instance. sen. cotton: when you're the party out of power, all you have is the power of ideas. you can i get up, you can't award contracts. you don't have patronage the way you appeal to parties. the way you appeal to voters is the power of your ideas. i think it is fair to say that over the last eight years in the obama administration, our ideas have one. if you look at the results from 2010 and 2014, and now 2016, you also have a lot of new, young thinkers coming into the party