Rep. August Pfluger (R-Texas) defended President Donald Trump’s tariff policies at an event Wednesday, even as the administration’s moves continue to roil the markets.
Pfluger said he planned to have “a good discussion” with Treasury Secretary Scott Bessent on the Trump administration’s tariffs later Wednesday during a planned lunch on Capitol Hill. Bessent later canceled his meeting with House Republicans because got called into a meeting with Trump, sending a deputy instead.
Here are other key takeaways from our conversation with Pfluger this morning:
Seeking tariff clarity: While he’d like to know more from Bessent about the direction of Trump’s economic policies, Pfluger said the president was “elected to shake things up.”
“President Trump may operate in an unorthodox manner, and he may stir things up and shake things up, but everybody just calm down because the restructuring needs to happen,” Pfluger said.
Trump tax cuts: Republicans are trying to pass a budget resolution that would allow the party to move legislation later this year to cut government spending and taxes. Pfluger said he is hopeful Republicans will succeed in their efforts but acknowledged it will be tough.
“We have to look the American public in the eye and give you the confidence that we care about this, that we actually care about extending those tax cuts and doing the things for our children, for our grandchildren, that would leave them a better country,” Pfluger said.
Carried interest: Pfluger, who represents an oil-producing area of Texas, said the carried interest provision of the tax code, which benefits investment fund managers and private equity firms, has helped boost the energy sector.
Trump wants to close the so-called carried interest loophole, but many Republicans, including Pfluger, disagree.
“It’s been fundamental to the investment we’ve seen and the fact that we are now energy dominant,” Pfluger said. “I think we just need an educational moment to talk about what has happened in the Permian Basin, what has happened in the energy sector and I think with that education, my colleagues could really get to the point where they understand it.”
Fireside chat: Drew Maloney, CEO of American Investment Council, and Bobby Franklin, president and CEO of the National Venture Capital Association, continued the conversation, weighing in on carried interest and tax cuts.
“We’re very supportive of an extension of the tax cuts and jobs act as is,” Maloney said. He added that since the 2017 tax cuts were enacted, the private equity industry has invested more than $5 trillion in the economy and invested in the reshoring of manufacturing.
Franklin chimed in too and said carried interest was key for private equity firms to continue investing in new businesses.
“Your only economic incentive is carried interest,” Franklin said.
You can watch the full conversation here.
— Lillian Juarez
