Minutes. Looks alright good morning everyone. Thank you so much for joining us here in person and on the live stream im ana palmer ceo of the founders of punch bowl news joined us always by jake sherman another founder a punch bowl news. Going to carol for 2023 series this year we are focused on Small Businesses and future of america. Well be talking for representatives by the republican for pennsylvania the cochairs of the Problem Solvers Caucus for consumer to solve problems today. After words when have a fireside chat owners coo of 21st century expo group. And also local which is exciting. They are going to join us for the fireside chat portion. A quick reminder on social media platforms that punch bowl news. Put on instagram share with your friends and family. With that with lets welcome the congressman to the stage. [applause] first rendered torture them with news of the day. Is a good thing were sitting all the way over here. Lets talk debt ceiling according to Goldman Sachs in june, july, august Goldman Sachs so they first half of june. On the u. S. Defaulting for the first time ever, mr. Fitzpatrick your leadership yesterday 1. 5 joined our hike was a whole host of cuts. You supporting that . Are going to read it first 300 pages. But i will say they will get there. At some points. Its probably going to have a few tweaks. People are reading through it there missing that. I think people are viewing this differently. A standalone bill thats going be taken up in the Senate People are viewing this as a volley. They know the brand the magnitude of the defaulting on the debt. Knowing the final product where you meeting . I have some concerns with that but they can be laid up a. What is that is that fair . Was it fair to me. I so want to read to their work requirements very important for me. Medicaid and snap. Twenty hours a week can be not only a working and can be looking for work. It can be training for each operator can be volunteering. It can be bulging of the church across the street for charity. There included or onerous or if they are achievable. Have time parttime still qualify. Ablebodied individuals i can see where you are at. Cut spending as part of the debt limit bill where are you on that . On this particular bill . On on a piece of it. My concern yesterday and i to the clean energy side stick out. The work requirement piece and on the Small Business side there also cuts to Small Business programs with other things are critically important. They go back and adopt levels which i understand they want to go back on the adoption of spending levels the overall impact would be even if this passes the house we have to get the bigger issue is what we do to factually get a deal done. We do not go off a fiscal cliff whatever numbers we learn but next week from treasury. Of the short shoes and as you know its hard to get things done quickly. So how do we get out of this. Brent and the caucus proposed meet with each other and figure something out. Deafly not the final plan. What are the things that need to be more amenable to democrats and republicans . On terms of specifics we spent the last couple of months on this. Left its very clear in this discussion with both sides i look certain ideas . How does the package come together. Both sides are going to have to give a little and agreement. Talk about cuts to why we really get to the point of saying an expert panel thats willing to look at the totality how do we look at in totality we cannot allow unanimous agreement. But we also have to deal with longerterm fiscal issues. There is a deep acknowledgment of both which is where we got to a regatta. Theres no way are going to vote for this package. That is incredible reporting. [laughter] what youre going to do. I didnt say what he should do i just know he will not at the end of the day. One thing that would surprise me and this is the both of you play a part in this. A lot of people thought for a long time that someone in congress should introduce and generally should have been traduced a clean debt selling bill and file a discharge position to get out of Committee Per neither of you did that. Even as a failsafe. You would have gotten there as a couple people in your party who would for that as a failsafe. Giving mccarthy cooks a clean debt ceiling further kicks the can down the road. Evans got to decide if all these two things either you believe it or you dont. Not one but two simultaneous problems. We are at a fiscal cliff at risk of default. You either believe thats unacceptable or you dont i believe its unacceptable i think most people do not everybody most people. Second is we have a debt to gdp ratio thats more than 1 bread thats happened two times in our history world war ii and today pretty either believe that the problem or you dont. And if we are not attacking both problems we are acting in a manner that is unbecoming of our responsibilities. The way i wish we had preceded us knowing how this is going to end up or we know how this is going to end its a solution than the last minute. Fair to say thats whats going to happen . Its probably progressive a floor vote in the house showed to vote in the setting of a 60 filibuster threshold the democrat president. So anything that gets done and we know something has to get done per were not going to allow for markets to spiral per not woodlot that habits would be to Party Solutions why not start down that . A clean debt ceiling thats a one Party Solution for thats not a twoparty. Took some he ask you what comfortable the clean debt ceiling . Good to get a pass your house what level you would be apps. A question of a discharge while there were concerns you did not know what level we would be so discharging something goes back to the committee. An actual failsafe that would work. That both sides give a little bit on. Both sides can come to the table. Brian and i and a lot of us have to get the table and talk. You keep working. Maybe they will. I think it is important that we talk. Two other topics you want to get too. A lot to talk about on that issue as well. On the ways and means are the regional banks out of the woods customer how concerned are you . Where certainly and a lot better place there were a few weeks ago per the way we responded the banking market as a systemic challenge if we let these banks the sense go to the banks and get money out of their account they lost confidence in the local banks a small regional banks they lost faith. They cannot allow in my opinion pretty cant have it Smaller Banks are very involved in the community. Make risks, the businesses have the approach they take risks on people. When they see a punch bowl that is a great business idea. The give them a Small Business loan. I think the fed was right and backstop himself gets the bottom in that bank and make sure of that regional fed not doing their job. The few banks to be running everything. To calm things down. Including in europe to calm things down. I see managerial problems and supervisory problem. The regulatory issue there. The portfolio was out of whack. Its the risks that were present. Social media you have twitter induced run on a bank. Theyre not prepared for that. I am hopeful enough time has elapsed that any banks that had similar flood models. It doesnt seemed like the new spieth legislation to fix this. I think what we should be like the thing i would say on that the size of the accounts i think we should consider lifting that number up from 250. It is too low. The depositors should be factored and have to pay for more insurance. There was a similar model and that the market drive that process. That 10 million in an account you should pay more insurance than someone who has 100,000. We have to legislate a higher number of her brian brings up a great point of social media. The runs on the market that could because now in a flash. That is a big change. The Silicon Valley bank had the wrong asset mix for that poor supervisory, they didnt have anyone in place for nine months. We should rollback. In that law itself gives the fed the right to do what they should have been doing. And to protect the community begs. The answer is there something to should be looked at legislatively progressive does not take a Large Company to exceed two and 50000 a month in payroll thats not a very Large Company they need a pump at up a quick summary topic before it to Small Business questions, taxes, trump tax cuts should or should not be extended . Because i think they should. In their current states in the red state . Lower your taxes. That was my followup question. Salt which ive written a lot of bouts over the past couple of years, what is the next step on that . You got to have years were salt will come back fully as it should so the moocher states stop mooching off estates like mine. In the meantime you got some from the red states and some went to re up the trump tax cuts but i caught a tax hike bill because thats what he did to people in my district. We are going to have to negotiate. If they would like re up some of those provisions, we should negotiate and suit kind of deal we can come to unsolved. Otherwise we wait out the clock for two and half years. And we get full deduction back for quick salt is a philosophical issue for theres a lot i agree with my colleagues from new york, new jersey, california. Theres also another side to that argument theres got to be some incentive to manage and relatively lower your tax rates to make it attractive to live and work for you look at states like florida, no income tax will get have other states that do that as well but theyre tracking a lot more people a lot more businesses were quick to provide the services for the family they dont look out for any by their schools arent good they dont pay their cops and firefighters anything. Its a principle of double taxation for my good buddy from pennsylvania believes in double taxation on for left her taxes. Would like me too respond to that . No were not having a debate. There are alternative models there, buddy. About the same Problem Solvers Caucus. There is a lot of love here. [laughter] and we talk it out. That he will good. [laughter] alright lets shift shift gears to Small Businesses. Weve been talking to lawmakers around the country for the past two years on these issues kind of coming out of covid, the challenges that a lot of Small Businesses have had. We would love to get your take, what have you heard from your constituents where we are now . What do they need . Is there any role that congress should be playing to help solve at this point . Number one is reauthorize sba. The first authorization i believe is a 1953. The last reauthorization was in december 2000. So weve gone decades without reauthorizing i would analyze that to an iphone you have not updated the software the absent 10 years. It would not function very well per the purpose of reauthorizing an agency in sba as we all know is the agency that looks after Small Businesses for the plate incredible role in recovery from the pandemic. Think its over 1 trillion in disbursements they were responsible for overseeing. And it was very interesting from our District Office as well. So many of the casework matters we were adjusting, project protection for dealing almost exclusively with sta. The sba on the Economic Health side. They need to be reauthorized. I think its really important we modernize it. Fa reauthorization is a good model to look at. There is a lot of discussion about how we modernize our air Traffic Control systems. Look to other countries like canada or that of a better system . A worse system . We need to upgrade and modernize our programs. Thats the first thing we need to do. As you said it has been decades, right . 2000. What are the chances . What could be the market moving thing that could actually get this done . I dont think it should take that. We authorize all of our agencies but we have the farm bill this year we are reauthorizing pfizer the faa. We are doing it for other agencies i do not know why sba keeps getting left out. What would you do to modernize it . Add to the point for one Second Period part of what brian is pointing out is completely right. Unfortunately Small Businesses often get brushed aside. That is part of a challenge we have. In new jersey 99 of Small Businesses, half the jobs. It is critically important from Economic Growth perspective and investment process perspective. You cant use an old model and old lands on a whole different world than we were a couple decades ago its a whole different world. The good news is theres a lot more women on Small Businesses a lot more minority. Those are great developments for the question is shouldnt we be looking at the sba in saying how do we make this place a better for the world were living in now and for technology for the effective more diverse workforce. Those are all great things and what do we do about it to help promote it more . We were very involved in the last package on the last administration on re upping ppp e idl which were critical. But the Small Business administration was flooded for a short period of time it was never in the position to have to handle the incoming bout it did any short period of time. And frankly overall i think they did a very good job dealing with it. Imagine had they been modernize in a lot of ways even better how they might have handled other mightve had in place. You cannot let decades go by before rethinking a Government Agency or frankly imagine for 20 audit plus years of ignoring innovation changes thinking they not have to update its really ridiculous. Congress created advocacy almost 50 years ago in an effort to have an independent watchdog but a lot of agencies have that the Small Business community the position has been filled permit for more than six years shouldnt this be a priority . Maybe this gets wrapped up in sba authorization . That will be the thing brought up in reauthorization. Was mccarthy say what is your leadership say . Is december of 2000, right question look at every single speaker every Single Administration nobody has done it. Bills have been introduced individual modernization bills have been introduced. I do not know why they have not been brought up. Certainly its going to be one of my assets. Capitol counseling and contracting are the three priorities more Goals Mission points theyre all antiquated right now in all three fronts. You also want to be careful part of the proposal im looking at her we were looking at yes it was the impact on agencies like this. If you do strip resources away from them, what sort of impact will it have a question work that is an analysis we need to do what look at all of our legislative decisions in the next month. Given tuna Second Period thats whats going to happen with the administration is going to happen when you start whacking away at spending and their impacts across the board for that is kind of the reality. Were going to have to make hard decisions of the question is where you making the hard decisions . Are they smart decisions . Are they just across the board decisions that are not actually thought through . That is the analysis we have to do. In making any kind of decision is it a smart targeted cuts . Or are they the right ones . Thats part of what we have to look at. Are quickly running out of time. First of which we have gone around the country talking going to the european Small Business owners in a few minutes. Talk about the challenges coming out of the pandemic the Mental Health crisis that they are facing with the stress of running a business and also just employing people. Youve been very active on this mr. Fitzpatrick. Was there Something Congress should be doing or helping when it comes to these people in your communities . Ive asked the speaker, as the previous speaker and the current speaker if we could just for an entire week have Mental Health week in congress thats all we do is take up legislation. We are very good at coaxing on health from the neck down not on the neck up. Depression, anxiety art alltime spiking highs in our youth. Its leading to a whole list of problems triggered by social media exacerbated by social media. And, if you look at the lack of resources, the lack of practitioners nowhere is that were prevalent bennett Mental Health and Substance Abuse disorder. Pandemic really spike this for the first phase was physical health. Phase two is would be the Mental Health problems that are exacerbated and emanated and manifested from it. It also Substance Abuse disorder. We were trending in the right direction prior to march of 2020. And all of the ingredients for relapse occurred. Joblessness, economic distress, isolation, lack of availability for outside resources come outside counseling where everything was shut down. And everything so to move in the opposite direction. Co led the Mental Health and in addition task force. Weve entire legislative agenda that we hope to get through but weve got 17 of about 30 bills so far. Another challenge is something we hear a lot about, child care. The Child Tax Credit was one piece of legislation is be bipartisan. Probably no longer in some way, shape, form. What is going to be next . Is that a priority of any of yours . Especially coming out of covid. He saw in the last In