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Those states, including us. we don't want our taxes to go up. is that going to happen. >> no. in fact, we worked really hard to address what you're referring to as the salt issue to push even more tax cuts down the middle class families, even the higher income families where it may be higher 250,000 middle class. if you live in new york, you may be a teacher married to a firefighter making that and in our bill, they do. you'll see tax cuts at every income level, and that's why you saw a number of new yorkers vote for the bill. and, listen, this bill will come back from the senate with even mor...

And negotiating over. it is a fight when you consider the sticking points are a yes or no type thing. you can massage state and local taxes. if it's a yes or no on obamacare mandate, if it's a yes or no whether you have salt deductions, it's not a massaging. they're deal breakers for some. >> it's a huge deal. theoretically if you're a reason, you can't allow these cities to have these huge budgets like new york city where they're wasting money hand over fist. they're spending 25% more over de blasio than before and everything is worse. homelessness is worse. more trash on the streets -- >> do...

Middle class and that's something they do not want to be blamed for by democrats, by harming the middle class. i think that and the corporate rate not going about 20% are two things that the white house are so adamant about keeping. >> harris: these are deal breakers? >> right. but the deal breakers here, the negotiating ones is the salt deduction, state and local it deduction. because you have mulvaney the budget director saying we think we should get rid of it because it's fairness.we but at the end of the day, you're gonna need a lot of these republican moderates on board.bl if they're goin...

Middle class and had that's something they do not want to be blamed for by democrats, by harming the middle class. i think that and the corporate rate not going about 20% are two things that the white house are so adamant about keeping. >> these are deal breakers? >> right. but the deal breakers here, the negotiating ones is the salt deduction, state and local it deduction. because you have mulvaney the budget director saying we think we should get rid of it because it's fairness. but at the end of the day, you're gonna need a lot of these republican moderates on board. if they're going to neg...

Scrapped and how seriously do you think that would impact his ability really to govern? >> reporter: so whether or not a deal is able to be made sort of depends on how directly the white house will stick to this list of demands. a lot of the things on the list like the border wall funding, like the ending funding for sanctuary cities, these are things that would be deal breakers with the democrats alone. coupled together, they are unlikely to make a deal. but if this is just a starting point for the white house, it is possible there is still some deal that could be made in determines terms of ...