GOP Rep. Malliotakis on breaking with her party and taking a stand against Medicaid cuts

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• Geoff Bennett:

  Republicans on Capitol Hill are entering critical days, debating how to enact parts of the Trump agenda. Tax rates, Medicaid and the future size of government are all on the line. And House lawmakers have not yet figured out how to make it all work together.

  One hangup for a dozen House Republicans is the potential threat of Medicaid cuts. In a letter to House leadership last month, they wrote to support what they call targeted reforms, but will not back any reduction in Medicaid coverage for vulnerable populations.

  New York Republican Congresswoman Nicole Malliotakis is among them. I spoke with her earlier today.

  Congresswoman Malliotakis, welcome back to the "News Hour."

• Rep. Nicole Malliotakis (R-NY):

  Thank you for having me.

• Geoff Bennett:

  What are your concerns about the Medicaid proposals under consideration right now by House Republican leadership?

• Rep. Nicole Malliotakis:

  Well, it seems that we have done a good job in expressing that we do not want to see certain cuts that would impact our constituents made.

  So far, we have been successful in taking off the table lowering the reimbursement rate that New York receives, which is currently at 50 percent. We have also been successful in ensuring there would be no per capita caps on traditional Medicaid. And we've — our priority has always been to protect our most vulnerable, the seniors, the disabled, children with developmental disabilities, and our hospitals.

  So the — we're currently discussing the expansion portion to see how we can work together to eliminate the fraud, the waste, and the abuse, to make sure that illegal immigrants are not receiving these services, to ensure that if you're able-bodied between the ages of 18 to 64, and you have no dependents, that you have work requirements in place, and cutting back on some of the loopholes that the states have used to try to gain more money from the federal government.

  So we're currently working through this all. We had another meeting today with the speaker and Chairman Guthrie and we expect to come to a resolution here that can make all sides happy, and we can preserve those important benefits for the people that we represent.

• Geoff Bennett:

  Yes, some of your Republican colleagues argue that Medicaid funding is unsustainable, and that reforming it is a matter of fiscal responsibility. So how do you distinguish between necessary reforms and harmful cuts?

• Rep. Nicole Malliotakis:

  That's right. You need to be able to make that distinction, and that's what we have been doing, working through that.

  Look, I think, at the end of the day, it's about preserving the benefits for people who are currently legally eligible for them, and then ensuring that there are certain parameters in place, that we are checking eligibility more frequently, that we're ensuring that people who are here illegally are not benefiting from these important programs that are reserved for our citizens, and making sure that people who have the ability to work, they're young, they don't have children, they don't have any disabilities, they can contribute.

  And that would actually move them to a private sector insurer, most likely. So we're trying to find that balance here. And I think, if we do that, we will actually save money in the long run for the people who truly depend on this program and need it. And that is what this is all about. And I think we're going to get there.

• Geoff Bennett:

  As Congress debates broader tax policy, the 2017 Trump tax law capped how much people can deduct for state and local taxes, something that hits New Yorkers hard since New York is a high-tax state.

  Do you need to see that SALT deduction cap increased in order to support a final tax and spending bill?

• Rep. Nicole Malliotakis:

  Yes, we need to see that increased. That has been one of the other things many of the same members have brought up.

  And you mentioned it. We are a high-tax state. That is because our mayor and our governor are taxing New Yorkers to death with high income taxes, with high property taxes. Now, it would be great if they just did an across-the-board personal income tax cut, just like President Trump did in his 2017 Tax Cut and Jobs Act, New York state and New York City.

  But they won't do that. But, as a federal representative, I'm looking for solutions on how I can provide relief from the federal level. It is important to note here that not only do we need the SALT deduction to increase to cover middle-class families, but we also need to make sure that the Alternative Minimum Tax does not return.

  The Alternative Minimum Tax unfairly hit middle-income families because it was never adjusted with inflation. And so you saw so many people like the ones I represent in Staten Island and Brooklyn who have modest middle income to — getting hit with this tax, but also they weren't able to qualify from SALT as a result.

  So, as we talk about increasing this deduction for state and local taxes, I'm also standing guard to make sure that the Alternative Minimum Tax does not come back.

• Geoff Bennett:

  On the SALT deduction, where does that number stand right now in your conversations with House leadership?

• Rep. Nicole Malliotakis:

  Well, we're still negotiating, so I can't give you a direct number.

  What I will say is, if we can triple or quadruple that SALT deduction, which is currently at $10,000, it would cover almost all middle-income middle-class families, families with — earning roughly $400,000 to $500,000 and less.

  So I think the sweet spot here is to get a number that does cover our middle class. We're not looking to give tax breaks to millionaires and billionaires. We're looking to support middle-class families. And we can get there, and it could be a compromise number that everybody across this conference can support and will give the New York members, California and others, what we need to support our constituents.

• Geoff Bennett:

  New York Congresswoman Nicole Malliotakis, thanks again for your time this evening. We appreciate it.

• Rep. Nicole Malliotakis:

  Thank you.