Guests - Andy Biggs, Ava Chen
Reconciliation Bill Challenges: Congressman Andy Biggs on Debt, Taxes, and Border Security
Navigating Congressional Gridlock
Congressman Andy Biggs, representing Arizona's fifth district since 2016, joined Winn Tucson to discuss the ongoing reconciliation bill negotiations. As a member of both the House Oversight and Accountability Committee and the House Judiciary Committee, where he chairs the Subcommittee on Crime and Federal Government Surveillance, Biggs offered insight into the current congressional impasse.
"Every time it's a step forward, step back," Biggs explained regarding the negotiations. "I believe it's going to get done. I just don't know when it's going to get done."
The congressman highlighted how the bill, as currently written, increases the structural deficit by $1.4 trillion in its first five years—a trajectory that fiscal conservatives are fighting to change. "This is the way Congress does it—it puts bad stuff with good stuff," he noted.
Tax Package Conflicts
At the heart of the reconciliation bill is President Trump's tax package, which includes no tax on car loan interest, Social Security, overtime, or tips. This package would cost approximately $140-150 billion over ten years.
However, a major sticking point involves the SALT (State and Local Tax) deduction, which allows residents in high-tax states to deduct state and local taxes on their federal returns. Representatives from states like New York, Illinois, and California are demanding Americans subsidize their state and local tax exemptions.
"Their impact and their demand will cost $320 billion over that same 10-year period," Biggs pointed out. "It actually almost doubles the cost of President Trump's new tax program."
Despite President Trump clearly stating "no SALT" during his meeting with Congress, Speaker Mike Johnson reportedly walked out and within two hours had increased the SALT exemption—directly contradicting Trump's parameters.
Medicaid Reform and Accountability
Another significant obstacle in the negotiations centers on Medicaid reform. Biggs emphasized that Republicans aren't trying to eliminate the program but rather implement accountability measures to combat waste, abuse, and fraud.
"The most pressing issue is the money for border security," Biggs stated. "I talked to Tom Holman this week, and he said, 'Andy, we got to have the money.'"
Biggs clarified that Medicaid needs to be understood in two categories: traditional Medicaid (designed for pregnant women, seniors, disabled individuals, and indigent children) and the expansion population implemented through Obamacare, which covers able-bodied adults.
"The expansion population gets a higher match rate from the feds on average than the traditional segment," Biggs explained. "Maybe you should work if you're going to get these benefits."
Two key reform measures could save approximately $600 billion over ten years, according to the Congressional Budget Office: implementing work requirements and removing illegal immigrants from eligibility. "That should be—no one should ever even argue that point," Biggs asserted.
"California's healthcare bill for illegal aliens alone is like three and a half billion dollars in the hole," he noted, illustrating the fiscal burden facing states that provide generous benefits to non-citizens.
China Watch Wednesday: The CCP's Global Strategy and Secret Alliances
Middle East Diplomacy and Energy Deals
Ava Chen from the New Federal State of China joined Winn Tucson to discuss China's growing influence worldwide. She began by highlighting the Chinese Communist Party's (CCP) diplomatic efforts in the Middle East—a key battleground in U.S.-China economic rivalry.
"The region is such an important and key battleground of the U.S.-China economic rivalry. It's beyond a lot of people's thinking because before, the United States was the sole power in the Middle East," Chen explained.
She pointed to March 2023 as a seismic diplomatic moment when the CCP facilitated a deal between Saudi Arabia and Iran. "CCP announced that Saudi and Iran will be reaching a diplomatic détente under the CCP's facilitation."
This diplomatic breakthrough allowed China to send two critical messages: to Washington that "you have failed to do this," and to Gulf nations that "you have an option" beyond working with the United States.
Chen revealed exclusive intelligence about a massive energy deal between China and Saudi Arabia: "The total value of this agreement is 1.2 trillion U.S. dollars with Saudi Aramco. The CCP put $500 billion in cash on the table to secure this deal."
A crucial condition of this agreement required Saudi Arabia to settle all transactions in Chinese yuan rather than U.S. dollars—a direct challenge to the petrodollar system that has underpinned American economic influence for decades.
"What does that do? It elevates the currency of China and devalues the currency of the United States," Chen explained.
Military Installations and Secret Capabilities
According to intelligence shared by Chen, China has established numerous military capabilities throughout the Middle East that aren't publicly acknowledged.
"The CCP, through their Belt and Road Initiative and their disguise called 'military and civil fusion,' has turned those places into dual-use facilities. So it looked like civil facilities, but in a second, they can flip that into military facilities and attack their opponents."
Chen claimed that intelligence from the New Federal State of China indicated China has deployed medium-range and long-range ICBMs in Middle Eastern countries, including Iran and Saudi Arabia, capable of reaching the continental United States.
"They have already built drones and missile manufacturing assembly lines in Iran and Saudi and a few other places," she added. "They have also established biochemical weapons labs in the Middle East, Egypt, and several countries in Africa."
The Putin-Xi Relationship
Chen described the increasingly close personal and financial relationship between Russian President Vladimir Putin and Chinese President Xi Jinping.
"When CCP targets the leader of other nations, they're talking about personal relationship. They're not talking about national interest," Chen explained. "Xi Jinping and Putin have a very strong relationship in that sense. The whole entire Putin's family and Putin's inner circle have entangled with the CCP financially."
During a recent seven-hour meeting between the two leaders, Xi reportedly gifted Putin control of the Power of Siberia gas pipeline project, which will transport natural gas from Russia to China via Mongolia.
"This signals that Putin and Xi Jinping are getting even closer," Chen noted. "Xi Jinping has cemented Putin's dependence on China. Once they cemented the Russian support, CCP likely would invade Taiwan."
Economic Challenges and Control Measures
Despite projecting economic strength, Chen described China's economy as being in severe distress. "In 2020, [Miles Guo] was already sharing about the bankruptcy data. It's terrifying... seven million small businesses were shutting down."
She explained that the CCP continues to fabricate economic data while the reality for Chinese citizens grows increasingly dire. "People are crushed by not being able to afford mortgages. The houses and apartments they paid down payments on have now become negative assets."
As economic conditions worsen, Xi Jinping has implemented stricter exit bans and is using China's intelligence apparatus to prevent capital flight. "Xi Jinping is taking individuals as hostage and sending their proxies overseas to retrieve assets back home, using this to fill up his coffers and sustain his political reign."
Arizona Gubernatorial Race: Congressman Biggs on Federalism and Transparency
Federal Impacts on State Governance
Congressman Andy Biggs, who is running for governor of Arizona, addressed how federal policies affect state governance.
"Everything Congress does filters down to the states," Biggs explained. "When Congress spends way too much money, it basically imposes the tax of inflation, which is essentially a tax on people because it causes the price of goods to go up for no real reason."
During his time in the state legislature, Biggs observed that "we spent probably 80% or more of our time responding to federal mandates." Many federal programs, such as special education, never provided the promised funding levels yet required states to implement the entire program and follow all mandates.
Financial Transparency and State Control
Biggs expressed concern about the lack of transparency regarding federal funds flowing to Arizona's government. "In Arizona, whatever our budget is—15, 16, 17 billion dollars from the state legislature—the legislation doesn't even control all of that money."
He noted that beyond the state's official budget, billions in federal money comes into the state under the governor's control with limited oversight or transparency. "One of my proposals when I'm governor is to at least make that transparent, so everybody knows the amount of money we're getting and where it's going."
Biggs argued that increased state self-reliance, rather than federal dependence, would better serve Arizona citizens. "The more that you rely on the federal government with its political whims and changing dynamic, I think you have problems."
He highlighted that Governor Hobbs has "squirreled away" funds that have had "no oversight or accountability by the state legislature," a practice he intends to address if elected.