Verdict with Ted Cruz – Episode Summary

Title: 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
Hosts: Senator Ted Cruz and Ben Ferguson
Sponsor: Jobs, Freedom, and Security PAC

1. Democrats' Declining Approval Ratings

Senator Ted Cruz opens the discussion with a concerning analysis of the Democratic Party's current standing among voters. Citing a recent Wall Street Journal poll, Cruz and co-host Ben Ferguson delve into the factors contributing to the party's plummeting approval ratings.

• Poll Results: The Wall Street Journal reports that Democrats' approval rating has fallen to a 35-year low, with 63% of voters holding an unfavorable view compared to 33% who view them favorably. In stark contrast, Republicans enjoy a +11 rating, and President Trump stands at +7.

  Ben Ferguson [07:00]: "The Wall Street Journal reported that the Democratic Party's image has eroded to its lowest point in more than three decades, with voters seeing Republicans as better at handling most issues that decide elections."

• Reasons for the Decline: Cruz attributes the decline to the Democratic Party's failure to moderate extreme members, leading to a platform that emphasizes anger and opposition to Donald Trump. He highlights the influence of figures like AOCs and other radical members who skew the party's image.

  Ben Ferguson [07:00]: "I think the reason why Democrats are the lowest rating from voters in 35 years is because they didn't police their own party and get rid of the most extreme members who've now taken over the microphone."

• Impact on Elections: The hosts express concern about the forthcoming elections, emphasizing that Democrats' internal issues and negative public perception could significantly affect their performance in midterms and beyond.

  Ryan Seacrest [09:16]: "So my concern is twofold. My concern is political and my concern is policy."

2. Proposal to Save $1 Trillion in Federal Spending

The conversation shifts to a bold proposal aimed at curbing federal spending by addressing how the Federal Reserve manages interest payments on bank reserves.

• The Proposal: Ben Ferguson outlines his plan to stop the Federal Reserve from paying interest on bank reserves, a move he claims could save over $1 trillion over the next decade. He details his efforts to present this idea to President Trump and his introduction of related legislation.

  Ben Ferguson [16:13]: "This could save over $1 trillion over the next 10 years. That is a big, big number."

• How It Works: Historically, banks were required to keep a portion of their deposits with the Federal Reserve without earning interest. Since 2008, the Fed has been paying interest on these reserves, and due to interest rate hikes in recent years, payments have surged to $168 billion annually, with a significant portion benefiting foreign banks.

  Ryan Seacrest [19:30]: "The Fed paid $168 billion in interest on reserves last year. That's taxpayer money going straight to giant Wall Street banks."

• Challenges and Opposition: Ferguson discusses the resistance from major banks and Federal Reserve officials who argue that eliminating interest on reserves would hamper the Fed's ability to control interest rates. He counters these arguments by referencing historical practices and emphasizing the potential economic benefits.

  Ben Ferguson [21:05]: "If the Fed stops paying interest on reserves, it's very simple, we'll just buy Treasuries instead. So you'll have to pay interest regardless now."

3. Tax Law Changes Impacting Poker Professionals

Senator Cruz and Ben Ferguson address an unintended tax law change buried within a larger legislative bill, which adversely affects professional poker players.

• The Issue: A provision in the "One Big Beautiful Bill" altered how gambling losses are deducted from winnings. Previously, individuals could deduct 100% of their losses from their gambling income. The new law restricts this to 90%, resulting in poker pros paying taxes on income they did not actually earn.

  Ted Cruz [37:28]: "Under the new law, you would pay taxes on more than you made. That’s wildly unfair."

• Real-World Impact: Cruz shares personal anecdotes from his experiences playing poker, illustrating how the new tax law penalizes professionals unfairly. He emphasizes that even breaking even would result in unexpected tax liabilities.

  Ben Ferguson [37:32]: "If you had a really lousy year and broke even, you’d still owe taxes on $10,000. That is wildly unfair."

• Bipartisan Effort to Fix the Law: Recognizing the unfairness, Cruz has collaborated with Democratic senators Catherine Cortez Masto and Jackie Rosen, as well as Republican Bill Haggerty, to introduce legislation aimed at rectifying the issue.

  Ted Cruz [38:54]: "I’ve joined with the two Nevada senators, Catherine Cortez Masto and Jackie Rosen, and Bill Haggerty to fix this. We need a fair tax system."

• Consequences of Inaction: Without intervention, the current tax provisions could drive poker professionals out of the United States, harming a vibrant industry centered in places like Las Vegas.

  Ben Ferguson [37:32]: "We need to fix it because we need to be fair. This could drive poker pros out of the US, which would be tragic."

4. Policy Concerns and Future Outlook

In wrapping up, the hosts touch upon broader policy implications and the potential future trajectory of the Republican Party and the nation.

• Internal Party Unity: While Republicans currently enjoy favorable polling, Cruz warns against complacency. He emphasizes the importance of maintaining party unity and continuing to support the President’s agenda to avoid losing momentum.

  Ted Cruz [12:22]: "We have a real opportunity here to solidify our base and get even more done with the president."

• Economic Stability: Discussing economic policies, Sen. Cruz expresses concerns about the Federal Reserve’s role and the potential for recession if tariff disputes escalate without strategic management.

  Ben Ferguson [15:35]: "If we have really high tariffs and retaliatory tariffs, we could end up going into a recession, which could lead to a really rough election."

Notable Quotes with Timestamps:

• Ben Ferguson [07:00]: "The Wall Street Journal reported that the Democratic Party's image has eroded to its lowest point in more than three decades."

• Ryan Seacrest [09:16]: "My concern is twofold. My concern is political and my concern is policy."

• Ben Ferguson [16:13]: "This could save over $1 trillion over the next 10 years."

• Ben Ferguson [37:32]: "If you had a really lousy year and broke even, you’d still owe taxes on $10,000. That is wildly unfair."

• Ted Cruz [38:54]: "We need to fix it because we need to be fair. This could drive poker pros out of the US, which would be tragic."

Conclusion

In this episode of "Verdict with Ted Cruz," the hosts provide a critical analysis of the Democratic Party's declining popularity, present a significant proposal to reduce federal spending, and address an unfair tax law affecting professional poker players. Through insightful discussions and bipartisan collaboration, Cruz and Ferguson highlight the importance of policy reform and political strategy in shaping the nation's future.

Note: This summary intentionally omits advertisements and non-content segments to focus solely on the substantive discussions of the episode.