Sean Hannity Show - The Big Beautiful Bill - May 6th, Hour 2

May 7, 2025 - Sean Hannity Show

37:30

The Big Beautiful Bill - May 6th, Hour 2

Chairman Jason Smith, of Missouri, talks about the budget, the economy and President Trump’s effort on the ‘big beautiful bill.’See omnystudio.com/listener for privacy information.

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	Great piece, Wall Street Journal, Scott Pesson, Treasury Secretary.
	And he really, really goes way deep in in the paint in describing the president's views on the economy and and how the Republican Party is now emerged and how he calls it an economic rebalancing and a restoration of of America in the past in which, you know, the rich would benefit.
	And how the Republican Party is now becoming the party of working men.
	and women while the Democratic Party caters to coastal elites in California, New York, D.C., and Illinois and New Jersey.
	And anyway, he pointed out what a mistake it was and referred to an economist, David Auteris' name, and how the uneven effects of trade liberalization, 3.7 million Americans lost their jobs as a result.
	And offshore production to China accounted for 59.3% of U.S. manufacturing, job losses, and most of these workers entered long-term unemployment.
	And then he talked about, for example, how liberals have always argued for wealth redistribution and handouts to compensate, quote, the losers of this strategy that has, as he says, failed miserably.
	And he went on to make the case about why America has to take this stand against getting ripped off and frankly abused by friend and foe alike and reducing and giving countries the option, free and fair trade, or telling countries there'll be reciprocal tariffs.
	And he talked about supply chain issues.
	We saw this during the COVID pandemic and the president even saying that we can no longer, we must manufacture our pharmaceuticals here.
	Then he talked about the various plans that the president has in place.
	One is the tariff issue.
	Two is obviously the president's tax cuts.
	That's a reconciliation bill that we expect hopefully will be completed by the 4th of July.
	It can't be done soon enough.
	And what he pointed out is during the president's first term, the bottom 50% of households saw their net worth increase faster than the top 10%.
	And the Trump tax cuts would cost a median income family with two children more than $4,000 in take-home pay.
	It's got to be passed.
	And the president, you know, taking it to the next step by saying that he's going to not tax tips, Social Security, or overtime, again, good for working men and women, the people that make this country great.
	And another component of it is deregulating the economy, not only to build homes faster, factories faster, semiconductors, power plants, AI data centers, chip centers, technologies of the future, reawakening our industrial capacity in this country.
	And that came up in the conversation with the Prime Minister of Canada today.
	Now, the last leg of this stool is going to be energy dominance, which the president has already put in place with his call for an emergency declaration on energy and getting rid of the burdensome regulations that the Biden era brought to us that cost us a fortune.
	And anyway, energy dominance will bring in massive amounts of money for the American economy.
	However, first things first, and one of the most important parts of this, the president cannot do on his own.
	He needs the help of Congress.
	Now, it's an arcane, bizarre Senate rule where you can bypass cloture.
	It's called reconciliation.
	We've gone over it in detail.
	I won't bore you again.
	But rather than needing 60 votes using the reconciliation process, which was used for the Inflation Reduction Act, Obamacare, for example, when it's issues involving spending and taxes, the president can accomplish his agenda without having to wait till October 1st, the next fiscal year, and get us out, at least the beginning of getting us out of the Biden economy.
	Now, Jason Smith, who is a very important piece of this puzzle, Jason Smith is, you know, of Missouri, is leading this effort in the House to make sure we don't fail on this run.
	Here's what he said on Fox News Sunday.
	Failure is simply not an option.
	Will it be bumpy, Shannon?
	It absolutely is.
	This is the House of Representatives.
	But will we get the job done?
	We absolutely will.
	Failure is not an option.
	If we don't, Shannon, every single American will face on average a 22% tax increase.
	This is the last thing that they need after the last four years of the Biden administration where they had an inflation tax.
	All right, joining us now is Jason Smith of Missouri, who is spearheading a lot of this effort to get this one big, beautiful bill done and hopefully done by the 4th of July.
	Sir, welcome back to the program.
	How are you?
	Doing great.
	It's always great to be with you, Sean.
	I understand the slim majorities in the House and Senate.
	I understand the problems associated with the reconciliation process.
	And that means that the House has to work closely with the Senate and the Senate parliamentarian.
	But I do believe that a lot of the president's goals that he's laid forth here can be achieved as long as Republicans understand that not everyone's going to get everything that they want.
	That's exactly right.
	And my colleague, Sean, is that everyone's going to have to give and take.
	We know what 77 million Americans spoke loud and clear when they elected President Trump.
	And President Trump was crystal clear, Sean, on the campaign trail that he wanted to make permanent his expiring 2017 tax cuts.
	And he wanted to also provide additional relief to working families, such as no tax on tips, no tax on overtimes.
	And he wanted to provide tax relief for seniors.
	These are all things that the president's been very clear on, and Congress is going to deliver on it.
	And we'll get the job done, even with the narrow margins, but we'll get it done.
	One of the big sticking points is the state and local tax deduction, which I guess the vernacular commonly known as salt deductions.
	And there was a limit, I believe, of $10,000.
	And a lot of blue state Republicans are pushing very, very hard to dramatically raise that level.
	Now, during Trump's first term, I ended up paying more in taxes because that deduction was, I believe, rightly taken away from me because I believe that it rewards states for electing big tax and spend liberals and putting massive taxes on local and state income, for example, and other taxes.
	And if you make it deductible, you're only rewarding electing the wrong people.
	Yeah, that's been a huge, huge point of contention throughout this process.
	Of course, the Republican members of Congress from California, New York, and New Jersey in particular, this is a very sensitive issue.
	They feel like the $10,000 cap that was put in place in the 2017 tax cuts is not big enough.
	But what we also are dealing with in the House of Representatives, Sean, is that there are some members in our conference that doesn't believe you should even be able to deduct $1.
	And so trying to thread that needle where we can only lose three people to ultimately pass this bill.
	It's a balancing approach, and we're going to have to think outside of the box to get this done.
	So the numbers that I've heard bannered about are raising it from $10,000 to $30,000 or $50,000, and then some pushing as high as $100,000, $60,000, another number I've heard.
	Those are the numbers I've heard.
	Do you expect that it will go up, but maybe not as much as some people want?
	So I believe everyone's going to be unhappy, Sean.
	That's usually how it's probably going to end up.
	But the $10,000 cap is not something that is satisfactory with those members from California, New York, and New Jersey.
	And we can't lose those members, but they have to have a realistic number.
	And that's what we're trying to balance and thread that needle to have the right number.
	I would love for those members to be able to say that such a large percentage of their people are covered by doing this.
	In other words, get to a number where, say, median income tax earners would be covered and they would have the deduction, but not high net worth individuals.
	Absolutely.
	I think it's super important that this tax bill is reflective of the people who sent us to Washington.
	And the people who sent us to Washington are working class Americans who just want government out of their life.
	They want to pay less taxes.
	You know, the average salt deduction in my state in my congressional district is just over $1,200.
	Just over $1,000.
	Because we're a low-taxing state.
	But of course.
	By the way, does that include property taxes too or no?
	It does.
	It does.
	Missouri is nice, and it's a great place to live and do business.
	So salt covers property taxes?
	That's not something I know.
	It does.
	State and local tax is income and property.
	Got it.
	Well, I mean, it seems to me that there's going to be some increase in the deduction.
	And then it seems like the mathematical formula will kind of center around middle-income Americans in these states so that these congressmen and women can go back and say, I got you your salt deduction back.
	Exactly.
	It has to be a very good point for these members, but also a tolerable point for the members from Texas and Florida who don't have a state income tax and don't really utilize the salt deduction nearly as high.
	But, you know, this is just one of the numerous issues.
	Like if you look at the IRA, another item, you have 35 members who sent me a letter last week wanting to repeal the IRA immediately by the roots.
	And then I had 25 different members send me a letter saying, use a scalpel approach at the IRA.
	So this is all part of it.
	And there's hundreds of billions of dollars in the Inflation Reduction Act that went to woke elites that we can use to pay for the president's priorities for working class families and seniors.
	All right, quick break, right back more with Congressman Jason Smith of Missouri's in the House.
	He's spearheading this effort to get this one big, beautiful bill done by July 4th.
	More on the details of this on the other side and will it pass.
	And then the Oval Office gaggle with the Canadian Prime Minister Mark Carney, fascinating.
	We'll play that for you.
	And John Solomon has breaking news straight ahead.
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	All right, we continue now with Chairman Jason Smith of Missouri.
	He is spearheading the effort to get this one big, beautiful bill done by July 4th.
	What are the other contentious issues that you're dealing with?
	Where do you see the biggest fights coming down?
	So another important priority in the House is to cut spending.
	And so you're looking at a lot of the discussions right now of how much spending can we cut from this current proposal and what's tolerated by some of the members who do not like to cut spending.
	But there's ways that you can save revenues from work requirements on different programs to correcting the inefficiencies.
	Like, for example, If we require a social security number for the child tax credit in the tax code for the child and the parent, that can save over $30 billion so that it's going to U.S. citizens, not illegals.
	Yeah.
	All right.
	So, but this one big, beautiful bill, it would do a lot of things.
	It would give the Department of Homeland Security and Christy Noam and Tom Holman the monies that they need to secure our border.
	My understanding would help with energy dominance and the president's plan to expeditiously move those projects forward.
	It would deal with everything involving the economy.
	It would make the tax cuts permanent, also adding no tax on tips, social security, and overtime.
	It would also allocate money and resources for national security purposes, defense.
	What am I missing?
	No, you covered it all very well, Sean.
	This is a gift to America where they can keep more of their money and not send it to the government.
	They can make sure that their border is protected, their homeland is protected.
	They can make sure that we're unleashing our energy and reducing regulations.
	This is something that would be amazing for the president to sign into law on the 4th of July.
	And this would be a great gift going into the 250th anniversary for our country.
	What are the odds it's going to be done by the last question?
	I think we have a really good shot.
	You know, we're days away from getting this bill on the floor in the House of Representatives and then popping it over to the Senate.
	The House and Senate and the White House has been working hands in glove throughout this process to make sure that we're all on the same page and we're going to be able to deliver it.
	And I think July 4th is very, very realistic.
	All right, Jason Smith, keep us up to speed.
	We appreciate it, Congressman.
	Thank you so much for your time, as always.
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	All right.
	So earlier today, by the way, at the top of the hour, we do have breaking news with John Solomon.
	Obviously, Canada is a big part of it.
	China is a big part of it.
	But more importantly, this was fascinating today, watching the president with the new Prime Minister of Canada, Mark Carney.
	Now, by the way, he fashioned himself as a Canadian-first or Canada-first politician.
	And if you look at his background, he is a radical leftist who led the net zero campaign to phase out oil, gas, and coal, championed globalism at the UN, decried his country's truckers that were protesting over the mandates, the COVID mandates as anarchists, called it sedition, even wanted to prosecute Americans if they would send money to the truckers at the time.
	We cover that story extensively.
	But he's a radical.
	So the president brought him in, kind of schooled him.
	You know, the only thing he fought back on, it will never be the 51st state.
	President Trump answers, never say never.
	But this was just an interesting dynamic and very different from little Justin.
	And I think it actually was very net positive all the way around.
	But listen to the interaction.
	Thank you very much, everybody.
	It's a great honor to have Prime Minister Mark Carney with us.
	As you know, just a few days ago, he won a very big election in Canada.
	And I think I was probably the greatest thing that happened to him, but I can't take vote credit.
	His party was losing by a lot.
	He ended up winning, so I really want to congratulate him.
	It was probably one of the greatest comebacks in the history of politics.
	Maybe even greater than mine.
	But I want to just congratulate you.
	That was a great election, actually.
	We were watching it with interest.
	And I think Canada chose a very talented person, a very good person, because we spoke before the election quite a few times.
	And it's an honor to have you at the White House and the Oval Office.
	And you see the new and improved Oval Office as it becomes more and more beautiful with love.
	We handle it with great love and 24-karat gold.
	That always helps too.
	But it's been a lot of fun.
	Going over some of the beautiful pictures that were stored in the vaults that were for many, many years, in some cases, over 100 years.
	They were stored in vaults of the great presidents who are almost great presidents, all having a reason for being up, every one of them.
	So it's very interesting.
	But I just want to congratulate you.
	And we had a really great race.
	I watched the debate.
	I thought you were excellent.
	And I think we have a lot of things in common.
	We have some tough points to go over, and that'll be fine.
	We're going to also be discussing Ukraine-Russia, the war, because Mark wants it ended as quickly as I do.
	I think it has to end.
	We had some very good news last night.
	The Houthis have announced that they are not, or they've announced to us at least, that they don't want to fight anymore.
	They just don't want to fight.
	And we will honor that.
	And we will stop the bombings.
	And they have capitulated.
	But more importantly, we will take their word.
	They say they will not be blowing up ships anymore.
	And that's what the purpose of what we were doing.
	So that's just news.
	We just found out about that.
	So I think that's very, very positive.
	They were knocking out a lot of ships going, as you know, sailing beautifully down the various seas.
	It wasn't just the canal, it was a lot of other places.
	And I will accept their word.
	And we are going to stop the bombing of the Houthis effective immediately.
	We'll have maybe before we're going to, as you know, the Middle East, Saudi Arabia.
	We're going to UAE in Qatar.
	And that'll be, I guess, Monday night.
	Some of you are coming with us.
	I think before then, we're going to have a very, very big announcement to make.
	Like, as big as it gets, and I won't tell you on what, but it's going to, and it's very positive.
	I'd also tell you if it was negative or positive.
	I can't keep that out.
	It is really, really positive.
	And that announcement will be made either Thursday or Friday or Monday before we leave.
	But it'll be one of the most important announcements that have been made in many years about a certain subject, a very important subject.
	So you'll all be here.
	Mark, would you like to say a few words?
	Thank you, Mr. President.
	I'm on the edge of my seat.
	Actually, but thank you for your hospitality and above all for your leadership.
	You're a transformational president, a focus on the economy with a relentless focus on the American worker, securing your borders, providing ending the scourge of fentanyl and other opioids, and securing the world.
	And I've been elected with my colleagues here, with the help of my colleagues here.
	I'm going to spread the credit to Transform Canada with a similar focus on the economy, securing our borders, again on fentanyl, much greater focus on defense and security, securing the Arctic and developing the Arctic.
	And the history of Canada and the U.S. is we're stronger when we work together and there's many opportunities to work together and I look forward to addressing some of those issues that we have, but also finding those areas of mutual cooperation so we can go forward.
	That's great.
	Very nice.
	Thank you very much.
	It's a very nice statement.
	Mr. President.
	Anybody.
	Is the U.S. MCA dead?
	No, it was actually very effective and it's still very effective, but people have to follow it.
	So, you know, that's been a problem.
	People haven't followed it.
	But it was a transitional step a little bit.
	And as you know, it terminates fairly shortly.
	It gets renegotiated very shortly.
	But I thought it was a very positive step from NAFTA.
	NAFTA was the worst trade deal in the history of our country, probably in the history of the world.
	And this was a transitional deal.
	And we'll see what happens.
	You know, we're going to start to possibly renegotiate that if it's even necessary.
	I don't know that it's necessary anymore, but it served a very good purpose.
	And the biggest purpose it served is we got rid of NAFTA.
	NAFTA was a very unfair deal for the United States.
	A very, very terrible deal.
	It should have never been made.
	It was made many years ago, but it should have never been made.
	I would love that.
	Look, I have a lot of respect for this man.
	And I watched him come up and essentially through the ranks when he wasn't given much of a chance.
	And he ran a really great election, I thought.
	And yeah, something could happen.
	Something could happen.
	Yeah, please.
	What's the top concession you want out of Canada?
	The top concession you want out of the concession?
	Yes.
	Friendship.
	But that's not a concession.
	No, we're going to be friends with Canada.
	Regardless of anything, we're going to be friends with Canada.
	Canada is a very special place to meet.
	I know so many people that live in Canada.
	My parents had relatives that lived in Canada, my mother in particular.
	And no, I love Canada.
	I have a lot of respect for the Canadians.
	Wayne Gretzky, I mean, how good, the great one.
	You happen to have a very, very good hockey player right here on the capitals who I have a lottery.
	He is a big, tough cookie, too.
	He just broke the record.
	And he's a great guy.
	And, you know, we had the team here, and I got to know a lot of the players.
	But now, Canada is a very special place.
	Yeah, please.
	Mr. President, Mr. Prime Minister, I'd like to get your response to this too.
	Mr. President, you have said that Canada should become the 51st state.
	No, no.
	Well, I still believe that.
	But, you know, it takes two to tango, right?
	But no, I do.
	I mean, I believe it would be a massive tax cut for the Canadian citizens.
	You get free military, you get tremendous medical cares and other things.
	There would be a lot of advantages, but it would be a massive tax cut.
	And it's also a beautiful, you know, as a real estate developer.
	You know, I'm a real estate developer at heart.
	When you get rid of that artificially drawn line, somebody drew that line many years ago with like a ruler, just a straight line right across the top of the country.
	When you look at that beautiful formation when it's together, I'm a very artistic person.
	But when I looked at that beautiful, I said that's the way it was meant to be.
	But, you know, I just, I do feel it's much better for Canada.
	But we're not going to be discussing that unless somebody wants to discuss it.
	I think that there are tremendous benefits to the Canadian citizens, tremendously lower taxes, free military, which honestly we give you essentially anyway because we're protecting Canada if you ever had a problem.
	But I think, you know, it would really be a wonderful marriage because it's two places that get along very well.
	They like each other a lot.
	Well, if I may, as you know from real estate, there are some places that are never for sale.
	That's true.
	We're sitting in one right now, you know, Buckingham Palace that you visited as well.
	That's true.
	And having met with the owners of Canada over the course of the campaign last several months, it's not for sale, won't be for sale ever.
	But the opportunity is in the partnership and what we can build together.
	And we have done that in the past.
	And part of that, as the President just said, is with respect to our own security.
	And my government is committed for a step change in our investment in Canadian security and our partnership.
	And I'll say this as well, that the President has revitalized international security, revitalized NATO, and us playing our full weight in NATO.
	And that will be part of it.
	They have.
	I must say Canada is stepping up the military participation because Mark knew, you know, they were low, and now they're stepping it up, and that's a very important thing.
	But never say never.
	ever since, ever since.
	Why did you?
	Why did you?
	What do you take to get the terrorist off of Canada?
	Well, we'll be talking about different things.
	You know, we want to protect our automobile business, and so does Mark.
	But we want to protect, we want to make the automobiles, and we want to, you know, we have a tremendous abundance of energy more than any country.
	We have just in Alaska alone, Anwar has been reopened.
	Anwar is probably the largest find anywhere in the world.
	They say it's larger than Saudi Arabia.
	I don't know, but it's a lot.
	But we have tremendous amounts of energy.
	Other countries don't.
	We're both lucky in that way.
	They have energy.
	We have energy.
	We have more than we can ever use and more than we could ever sell, actually.
	And you have the same thing.
	We're going to have a great announcement over the next few days, an announcement that will be so incredible, so positive.
	And I'm not saying I don't want you to think it's necessarily Andre.
	Just to finish, we also have a situation because everyone says, when, when, when are you going to sign deals?
	We don't have to sign deals.
	We could sign 25 deals right now, Howard, if we wanted.
	We don't have to sign deals.
	They have to sign deals with us.
	They want a piece of our market.
	We don't want a piece of their market.
	We don't care about their market.
	They want a piece of our market.
	So we can just sit down and I'll do this at some point over the next two weeks.
	And I'll sit with Howard and Scott and with our great vice president who has done a really good job.
	We have some good news to report on a lot of fronts.
	But JD will be there and Marco and we're going to sit down and we're going to put very fair numbers down and we're going to say, here's what this country, what we want, and congratulations, we have a deal.
	And they'll either say, great, and they'll start shopping or they'll say, not good.
	We're not going to do it.
	I said, that's okay.
	You don't have to shop.
	Now, we may think, well, they have a right, you know, that maybe we were a little bit wrong.
	So we'll adjust it.
	And then you people will say, oh, it's so chaotic.
	No, we're flexible.
	But we'll sit down and we'll, at some point, in some cases, we'll sign some deals.
	It's much less important than what I'm talking about.
	For the most part, we're just going to put down a number and say, this is what you're going to pay to shop.
	And it's going to be a very fair number.
	It'll be a low number.
	We're not looking to hurt countries.
	We want to help countries.
	We want to be friendly with countries.
	So I wish they'd keep, you know, stop asking, how many deals are you signing this week?
	Because one day we'll come and we'll give you 100 deals.
	And they don't have to sign.
	All they have to do is say, oh, we'll start sending our ships right now to pick up whatever we want or to bring whatever we want.
	It's very, very simple.
	And I think my people haven't made it clear.
	We will sign some deals.
	But much bigger than that is we're going to put down the price that people are going to have to pay to shop in the United States.
	Think of us as a super luxury store, a store that has the goods.
	You're going to come and you're going to pay a price, and we're going to give you a very good price.
	We're going to make very good deals.
	And in some cases, we'll adjust.
	But that's where it is.
	All right, quick break.
	We'll come right back.
	We'll continue on the other side.
	800-941-SHAWN, our number, and John Solomon at the top of the hour as we continue.
	Here's our backpack.
	Making America great again.
	Hang on.
	It's going to be fun.
	Sean Hannity 2025 is on right now.
	All right, the FBI is warning every single American and user of popular email services, even like Gmail, Outlook.
	You've got to be watching out for this increase in ransomware attacks.
	All of us are subject to identity theft and fraud and abuse.
	More than 300 victims in this case, ransomware across a variety of business industries, entire industries now have been targeted just in February of 2025 alone.
	Now, to protect yourself, your data, your good name, reputation, your finances, you've got to use unique passwords, VPNs, if accessing your information on any public Wi-Fi.
	And we all have to understand lots of places can even accidentally expose your personal information.
	And that's why LifeLock.com exists because they monitor millions of data points a second for any risk to your identity.
	If you do become a victim of identity theft, they will give you a dedicated U.S.-based restoration specialist that will fix it for you, guaranteed.
	And a neighbor of mine just had this happen to them, and thank God they had Life Lock.
	Anyway, protect your name, your finances, reputation.
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	Call 1-800-Lifelock or go to lifelock.com, promo code Hannity, 40% off, and protect your name, finances, and reputation.
	When we come back, John Solomon on a variety of breaking news issues and your calls, 800-941-SHAWN.
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	Benghazi, the truth became a web of lies.
	From Prologue Projects and Pushkin Industries, this is Fiasco, Benghazi.
	What difference at this point does it make?

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