Summary of "Dems' Poll Numbers PLUMMET, plus How to Save $1TRILL in Fed Spending & Why We Need to Fix the Tax Laws to Treat Poker Pros Fairly"

Release Date: July 28, 2025
Podcast: The 47 Morning Update with Ben Ferguson
Host: Ben Ferguson
Guest: Senator Ted Cruz

Introduction

In this episode of The 47 Morning Update with Ben Ferguson, host Ben Ferguson sits down with Senator Ted Cruz to discuss three pivotal issues shaping the current political and economic landscape. The conversation delves into the plummeting poll numbers of the Democratic Party, a bold proposal to save $1 trillion in Federal Reserve spending, and the need to rectify tax laws affecting professional poker players.

1. Democrats' Poll Numbers Plummet

Overview:
The episode kicks off with an alarming revelation from a Wall Street Journal poll indicating that the Democratic Party is experiencing its lowest approval rating in 35 years. Senator Cruz attributes this decline to the party's inability to moderate its ranks, allowing extreme elements to dominate the party's platform.

Key Points:

• Wall Street Journal Poll Findings:

  • 33% of Americans hold a favorable view of the Democratic Party.
  • 63% hold an unfavorable view, marking the highest unfavorable rating since 1990.
  • In contrast, President Trump enjoys a +7 favorable rating, and the Republican Party stands at +11.

• Reasons for Decline:
  Senator Cruz argues that the Democratic Party's embrace of extremist figures and policies has alienated moderate voters. He cites examples of Democratic candidates and officials promoting radical agendas that are out of step with mainstream American values.

Notable Quotes:

• Senator Cruz (04:17):
  “You look at when Chris Van Hollen flies down to El Salvador and has margaritas with an MS-13 gang member illegal immigrant who's right now being prosecuted for human trafficking. Not one single Democrat, except for John Fetterman, spoke out against it.”

• Senator Cruz (06:38):
  “19% of Americans view Republicans very favorably. So there's more intensity. People are very happy. And the Democrats, nobody except the communists are excited about the Democrats. That is a problem going into an election.”

Implications:
The stark disparity in approval ratings poses significant challenges for the Democratic Party in upcoming elections. Senator Cruz warns that the party's current trajectory could lead to further electoral setbacks if not addressed promptly.

2. How to Save $1 Trillion in Federal Reserve Spending

Overview:
Senator Cruz introduces a fiscally conservative proposal aimed at reducing federal spending by eliminating the Federal Reserve's practice of paying interest on bank reserves. This measure, he claims, could save the federal government over $1 trillion in the next decade.

Key Points:

• Current System:

  • Historically, from 1913 to 2007, banks were required to hold reserves with the Federal Reserve without earning any interest.
  • Post-2008 financial crisis, the Fed began paying interest on reserves, which has since escalated to $168 billion annually under the Biden administration.

• Proposal Details:

  • Elimination of Interest on Reserves:
    Ending the Fed's payments to banks for holding reserves would compel banks to utilize these funds more productively, such as extending loans to small businesses, rather than parking them idle.
  • Potential Savings:
    The proposed change could cumulatively save over $1 trillion over ten years.

• Challenges and Opposition:

  • Banking Sector Pushback:
    Major banks and their CEOs oppose the proposal, arguing it would disrupt their financial strategies and claiming it as a form of confiscation.
  • Federal Reserve's Role:
    Critics suggest that removing this mechanism would impair the Fed's ability to control interest rates effectively.

Notable Quotes:

• Senator Cruz (16:10):
  “For both 2023 and 2024, the Fed paid over $100 billion in interest on reserves.”

• Senator Cruz (20:39):
  “Nearly 50% went to foreign banks. So not even American banks. Foreign banks getting tens of billions of dollars of US Taxpayer money every year.”

• Senator Cruz (22:46):
  “The Fed is paying them. Just park your capital and do nothing. I'd much rather banks, if they want to earn a return, have to make loans and loan that out.”

Implications:
Implementing this proposal would not only result in significant federal savings but also encourage banks to support economic growth by increasing lending to businesses and individuals. However, overcoming the entrenched interests of the banking sector presents a formidable hurdle.

3. Why We Need to Fix the Tax Laws to Treat Poker Pros Fairly

Overview:
The final segment addresses an unintended consequence of the recently passed "one big beautiful bill," which included a provision adversely affecting professional poker players by limiting their ability to deduct gambling losses.

Key Points:

• Current Tax Provision:

  • Before the Bill:
    Professional gamblers could deduct 100% of their gambling losses from their winnings, paying taxes only on their net income.
  • After the Bill:
    Deduction is limited to 90% of losses, leading to scenarios where poker pros may owe taxes despite breaking even or incurring minimal profits.

• Personal Anecdote:
  Senator Cruz shares his personal experiences playing poker, highlighting the strategic and skill-based nature of the game. He emphasizes how unfair taxation could drive talented individuals away from the United States.

• Bipartisan Effort to Amend the Law:
  Cruz collaborates with two Nevada Democratic senators and a Republican senator to introduce legislation aimed at rectifying this tax discrepancy, ensuring fairness for professional gamblers.

Notable Quotes:

• Senator Cruz (29:22):
  “Under the new law, you lose 100 grand that year, you make 130, you could only deduct 90% of the hundred grand you lost, which means instead of paying taxes on the 30 grand you made, you would pay taxes on 40 grand.”

• Senator Cruz (31:44):
  “I don't know of a senator who knows this was in. There was a tiny little provision buried in there. We were moving incredibly fast at three in the morning, and so nobody saw it there.”

Implications:
This tax provision disproportionately burdens professional gamblers, undermining their financial viability and potentially causing a brain drain in the industry. The bipartisan effort to amend the law seeks to restore equitable taxation practices and support a legitimate professional sector.

Conclusion

In this insightful episode, Ben Ferguson and Senator Ted Cruz explore critical challenges facing both the political landscape and economic policies. From the Democratic Party's declining approval ratings due to internal extremism, to ambitious proposals aimed at curbing federal spending, and the fight for fair taxation for professional gamblers, the discussion underscores the importance of strategic policy-making and bipartisan collaboration in addressing America's pressing issues.

This summary encapsulates the key discussions and insights from the podcast episode, providing a comprehensive overview for those who haven't listened.