kevin o'leary? >> i love it takes advantage of the tax plan. >> and mike socrosoft, got t. a duncan, above 70. >> our thanks to mr. wonderful insights and guitar playing. that's it for "halftime report." "power lunch" begins right now and melissa, see you in a couple minutes welcome, everybody i'm tyler mathisen and here is what is on the menu. the tax timeline what exactly happens to your money and big business in 2018 we will break down which tax breaks stay. which ones go, and what it means to you and your portfolio. we will dig deeper on property taxpalooza as well plus, brewing up profits from the tax bill we'll find out why president trump's new tax law is a good thing for craft beermakers the ceo of brooklyn brewery is live in-studio and hope he brings some of his produce along. and the billion dollar buyer

landrys, first owner of the houston rockets. one of the most exciting teams in the's in nba co-anchoring along with melissa and me "power lunch" starts right now meantime, get a check on the markets at this hour stocks are mixed after a positive start with only the dow holding steadily in positive territory. the s&p and nasdaq, really hovering near the break even as we sort of are saunter towards the ent of this trading year and visa, winners. lagging ge hitting its lowest level in six years hotels and booze getting a bid hilton, marriott, wyndham, brown foreman, constellation brands hitting all-time highs netflix leading the nasdaq and

s&p 500 and agency could weathe spreads across the country, natural gas, you might expect, soaring today. we mentioned in the open a billion dollar buyer is here, tillman fertitta we're talk taxes, restaurant business, houston rockets, gaming business and a lot more with him welcome. good to have you. >> good to be here. >> we begin in washington where everyone is trying to figure out right now that new tax law, which takes effect, guess when -- a couple days from now elan maui joins us now what have we learned >> companies don't have a lot of time to get into compliance with new complicated tax rules. for businesses, january 1st most kick in facing new limits on interest deductibility after four years the rules become eastern more restricted. companies have to begin repatriating offshore ownings in 2018 and have the option paying the big over the next eight

years in installments. businesses are losing the ability to fully expense r & d that's flying under the radar, because it doesn't take effect until 2022 when businessesamorte flip side, companies get to write off full cost of capital investments immediately under the new law, take advantage of that five years until phased out. individuals, almost all tax breaks begin immediately and sdp entire after 2025. including the bigger child exempt benefit and minimum tax goes away. good news, limit on deductions for state and local taxes everyone so freaked out about, and limit on mortgage deductions expire in 2025 as well back to you. >> elon, thank you very much.

and talking taxes and his new op-ed in the "washington post" today is nbc news political analyst hugh hewitt and host of the "hugh huist show" on msnbc op-ed, "addiction it the story of 2017, but not to opioids. we'll get to your op-ed in a minute and tillman, jump in here. what occurs about the new tax law is not only the benefits for business the lower rates, marginal rates for individuals and so forth, but its complexity a complexity that is exacerbated by the fact so many of these provisions will sunset at one point or another somewhere over the next five to seven years wasn't that something that this tax law was supposed to not do well, simplicity went out the door the moment they put the cap at $1.5 billion into the budget

resolution and are counting on a future continue extending and revising the breaks and changes made if you're someone like tillman, you have all of these companies and all of these different offshore and onshore accounts and all of these depreciation and assets to count up, his accountants will be busy all day, all night through the end of this year figuring out what to do, and every individual out there watching, with a property in california or new york or high-tax state, need to read an irs advisory, their accountant does and make sense whether or not to prepay a lot of their state estimated taxes, state property taxes it's a jumble of small print right now, and the accountants are loving it. >> till whan, whman what are yog >> trying to figure it out, and it's not easy. because of lack of interest deduction, only 30%. now you get to expense your capital improvements, that's great, but we don't know yet how it's going to shake out.

and i'm trying to figure out, gosh, what am i going to owe in taxes next year for the company, and i'm the company. and we truly don't know. and i still don't understand why we did the sunset, phtoo. why is all this going away in a few years? >> the fact the thing was passed, what a week, signed into law, a week or so -- doesn't give you much time corporately to decide what to do. >> we don't. and even individuals are confused, or is the irs going to allow them, by taking this property tax deduction right now and people are standing in lines everywhere, trying to figure it out. the one thing everybody will notice, i don't care what tax bracket you're in, where democrats are screaming this is bad for you. everybody's paychecks will be a little bigger, even in the highest tax bracket like you guys 2.6% less than it was before we are going to all feel more in our paycheck. >> that -- and a good economy,

hugh, as we turn into, presuming the economy holds up, as we turn into 2018. it's going to be -- democrats have their work cut out for them, let me put it that way whatever you think of the present administration and so forth, the economy is performing if paychecks are a little bigger, that's what people, those pocketbook issues are what people tend to vote on. >> yes i think the bill will sell itself, tyler. it will either work for people or it won't. if it works for people the message in november will be simple, are you better off today than two years ago forget the noise, forget all the shouting and yelling online and off-line forget all that. are you better off than two years ago? we're countying on the tax bill to be, yes if i can add, every owner of an nba franchise in a low-tax state or nfl or nhl like texas got a huge win in the bill their free agents will want to

stay in texas, not going to california or new york am i right, tillman? >> 100% right. if you continue to think that's the first thing we tell free agents you get to make 10% immediately more by just playing for the houston rockets. so we will use that to our advantage. >> go to those warriors out there in oakland now, let me turn, hugh, to -- i cannot tell you how much i agree with your op-ed piece in the "washington post" today. >> thank you. >> the story is addiction is the story of 2017, but not to opioids. the addiction is to, what, hugh? >> outrage now, i don't want to downplay the people in the united states struggling with an addiction to any kind of opioid, any kind of alcoholism, any substance abuse. it's a very serious problem and some of us are addicted to loving or hating president trump and want to talk about it on my own network, msnbc and my radio

show i could do it 24/7 but the implication of extremes and constant streaming in print online, on television, on radio, everywhere, is changing the culture, and president obama actually talked about this with prince harry on the bbc yesterday. i don't think about president trump, more generally we all have to ratchet back the rhetoric and the trash talk and move it to the side and go back to the point where someone like secretary clinton will come on a radio show like mine, as she did a couple weeks ago, and we can talk for an hour and not get into argument issues about where this country is going. look at any comment section of any single column in any single online newspaper you're going to see that trash i'm talking about, and i think it's addicting to us a constant's state of frenzy and not good for anyone not good for business. not good for politics. certainly isn't good for our kids or future employment. >> i put it a little differently

than you, i think, hugh. what i've been thinking about lately is that our default emotion, our default reaction to virtually anything is outrage. that's where we go first >> you're right. and that part of the column which is, okay, can i listen to bernie sanders make an explanation for single payer not agree but don't have to go to deafdom five and shout out that that's the destruction of the country ahead of are us. that's actually what we used to do in the united states. i worked for president reagan. i had been in broadcast since 1989 it is only in the last year that the volume has been turned up to the top level, all the time, anden i think it's wearing out the american people's patience for politics. >> certainly it's driving us to the extremes, and driving us apart from one another, it would seem to me interesting thought. "washington post" column, hugh hewitt, thank you, as always have a great and happy -- and a

non-outraged new year. >> to you, too, tyler. tillman, thank you. >> thank you. you were just saying, fillmafil tillman trying to figure out the impact on your business. do you at least know your rate will go down >> for sure. 35% to 21% is a lot, but everybody also has to understand, you also have effective tax rate after credits and everything so corporations really never truly pay 35% very often, but -- >> won't your effective rate come down even more? >> it will where it really helps is with m & a. it's easier to sell a company now. because if your base is low in a company, you can truly sell it now. before, to pay 35%, you know i have not sold assets, because i didn't want to pay 35% in taxes. so if you just go from there 35% to 21%, you'll sell some assets. >> and looking to sell, then

>> looking to sell a billion dollar -- >> remember, a lot of different assets. >> true. >> that have a low basis, that i would never sell before. >> right. >> that i would sell now. >> that's a very interesting point. >> yes. >> i mean, if -- because if you're thinking it, there are lots of other owners thinking the same thing so that would say, deals are going to go up now. >> i think you'll see a lot of m & a. >> very interesting. tillman, thank you that's why we invite you. >> great nuggets. news alert in the bond market seven-year notes up. tracking the action. >> the last option of 2017 didn't turn out to be a very good grade i gave it a d-plus and maybe i was being overly generous. $28 billion in seven-year notes, yield option, 2.37 2.36.5 one issue market trailed about a basis point. a couple positives

2.55 mid to cover. 2.5 over 13.1 on directs. almost identical to auction average. look sd at indirects at 60.5, second weakest going back to september of 2016. not a good one, and we finish with 88 billion in supply on a sour note but all realize markets are pretty thin today. melissa, back to you. >> certainly are rick, thank you. rick santelli. cold weather crushing many parts of the country, but especially erie, pennsylvania, where they got five feet of snow isn't a couple of days the net gas investors are loving it will january put a chill on this market rally "power lunch" will be right back thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods.

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a major cold snap hitting most of the country. it is winter, folks. landon dowdy is looking at the january trends hi, landon. >> hey there markets for the most part continued to ride the santa claus rally as we close out the final two trading days of the year dow higher by 25% year to date nasdaq rising 21% and s&p nearly 20% so far will the trend continue into 2018 well, if history is an indication, we could expect a winter chill in january, according to ken show. over the last 20 years, the nasdaq, lone bright spot, up half a percent on average.

dow down, s&p down and with january typically a third worst month of the year. within the sectors, tech, highest return of .75% on average. and also posting more than 6% returns on average think twice about the financials this sector usually slides more than 2%. fifththird one of the biggest laggards, decline nearly 8%. >> landon dowdy, thanks. for more on what to expect in 2018, bringing in cio of the advisers alliance and the senior portfolio management gentlemen, good to see you eric, start off with you do you think next year will be positive but returns more muted. why? >> we do just because we're turning the calendar doesn't mean the trends that have been in place are necessarily going to expire. we still see favorable earnings growth backdrop. we are seeing evidence of a

synchronized global expansion from an economic perspective inflation continues to be benign we're also seeing very limited evidence of the prospect of recession. so we would expect a continuation of a somewhat more muted result than we've seen in 2007, and, you know, there are -- with valuations at elevated levels, risks have -- risks have certainly found themselves with a slighter margin of error. >> fundamentals sound better than what they were doing into 2017, plus tax wrreform, the prospect of an infrastructure spend. why more muted what particularly about the markets? is it valuation at this point? >> valuation has been, it's historically a bad timer for markets. what will likely create that more muted backdrop is, you know, while those favorable

catalysts you mentioned, tax reform, the prospect of infrastructure spending, are certainly on the horizon the comparisons also become more difficult, and go have mid-term elections which will capture investor imagination we, again, continue to see the, you know, the markets as a glass half full, but we do think particularly after such a, an environment where volatility has been depressed, we'll likely see potential rise there and just favorable but more modest returns. >> chris, you like financials, industrials and materials, sounds eye investing for global growth here? >> right yes, definitely looking for the cyclical recovery to continue. the synchronized global expansion we talked about earlier is in full effect and you'll see that take place over the course of the next year and i'm optimistic and think we'll have a really good year in the stock market not a straight line, but have pullbacks along the way, but i think double digit returns again

and i'm optimistic heading into the new year. >> i continue to question everybody when they say there is no inflation, but yet in my business, cost of sales is up. labor costs are up it's more expensive to sign a lease today. >> rents are up. >> so occupancy is up, and i think margins and all businesses are hurti ining a little bit but business is good that's the other side of it. we continue to raise our prices to our customers to overcome this so don't tell me there's no inflation. because i know that i'm charging the customer more and everything costs me more. >> customers feel that, too. not just in your business, the restaurant business, but you see it everywhere and yet, gentlemen, chris, why isn't it reported, then why aren't the statistics picking it up? >> well, if you look at kind of how the inflation is computed, a lot will be in rents or in housing prices some of it in technology and some of it in health care.

we've actually seen a moderation in health care inflation recently housing prices continue to go higher, but because interest rates are lower, the actual imputed rent or the rent adjusted component of the cpi has remained pretty muted. the convey they measure inflation, hasn't exactly been muted. as it grows you'll see it within materials. get an infrastructure spend, see it in industrials as well and the cyclical sector es should do well next year, because to your point, there is price inflation. it's just happening in other parts of the economy. >> the price of a 60-inch flat screen is maybe coming down. all right? >> yes. >> for sure. >> but in lots of other -- >> your cell phone plan. >> that's coming down. lots of places where it's doing the opposite of coming down, but -- >> chris and eric, our thanks to you. >> natural gat soaring today one going up, as cold weather crush as good part of the country including the northeast.

we have a reporter standing outside in chicago where it is about 14 degrees we'll have a live report, next. plus, small brewers get a major break in the tax law we'll talk to the head of brooklyn brewery about what that benefit could mean for his company. let's begin.

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security panel, keypad, key fob, entry and motion sensors and for a limited time, get a camera included and installed at no additional cost. that's a $449.00 value, installed, for just $49.00. take a look at natural gas soaring today up 12% in a week as a major cold snap hits much of the country more cold weather expected

let's go now to nbc news's ron mott, outside in chilly chicago. hi, ron. >> reporter: should see a little boom over the next few days in the northwest, great plains, new england is much, much colder this time of year. and seeing temperatures in chicago we're used to seeing in late january, early february the cold snap that has come down but the brrr into the winter for a lot of folks the windchills this morning around 0 to 1 degrees and weather is relative. a few days ago much colder actually feels a little balmy compared to tuesday. tell you about problems the cold weather and we all know about the snow out of erie, pennsylvania, but in the state of minnesota, folks used to cold and snow, close to 500 traffic mishaps reported just today. 500. it's not even 2:00 in the afternoon there yet. so here's what we know about the forecast going forward

this cold weather is going to stick around another five or six days probably closer to the end of next week before temperatures get back to anywhere close to normal here in the midwest and the upper plains especially you guys on the east coast, northeastern new england, might see warmer temperatures coming i don't are way before we see warmer temperatures coming our way. michigan avenue is back here you see the bridge here. a lot of retailers along the magnificent mall probably expecting fuller houses than they're seeing today, because it's simply too cold for people positive wander in and out of the stores that christmas post-holiday rush they counted on will probably be dampened by the temperatures today. the chicago river freezing over. it's downright cold and we have another piece of bad news coming it's expected to start snowing here in a few hours. >> ron, thank very much. take shelter, my friend. thank you again. so tillman, you have how many restaurants isnn chicago? >> 17. 17 slow ones now, probably.

>> ron just said people aren't going in and out of stores on the miracle mile i assume you'll find the same thing? >> definitely. i have everything from bubba gump on the pier to mastros and martins in downtown, besides all the suburbs. people will just, they don't go out, and i remember driving over here today and looking at a flash and saying, boy, business was really slow yesterday, but people don't go out in frigid weather. >> so i think people after the big holiday, they've been out. been eating. >> drinking. >> maybe take a little break, but the weather doesn't help. >> believe it or not, it's usually a pretty good week. >> is that right >> people have family in town. >> oh. >> so you have lots of big groups and -- >> right. >> and they do go out, because a lot of people are off, and when people are off they tend to go out more. >> yeah. >> so -- >> all right long lines at town halls across the country as people line up to pre-pay their taxes is it really a good idea will if save you money answers from an accountant and talk to one business owner who

got mataa jor x braeak in the bill the head of brooklyn brewery about to join us stay tuned on an lane. being rammed by a shopping cart. sitting in gum. and walking into a glass door. but for everyone else, there's directv. for #1 rated customer satisfaction over cable, switch to directv and for a limited time get a $100 reward card. call 1-800-directv. mikboth served in the navy.s, i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life.

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update is brought to you by -- i'm landon dowdy a rhode island mother complained they contained asbestos. a positive result after testing. the product pulled the product while it does its own testing. and thousands came together to jerusalem's western wall to pray for rain. israel has been in a drought nearly four years and its agriculture minister organized the event in hopes of a little divine intervention. americans have nor credit cards and are not afraid to use them a yu cfbp report found consumers opened 1 million new cards in 2016 the most since 2007. credit card debt rose jumping 9% over the last two years. and northern michigan winemakers don't mind the cold weather. it's making for excellent picking conditions for frozen

grapes used to make the region's specialty ice wine that's your cnbc news update at this hour. tyler, back to you. >> thank you very much. and brewing up savings for beer makers, a tax cut for brewers who produce 2 million barrels of beer a year or less good news for the smaller craft breweries around the country which have been blossoming to put that number in perspective, anheuser busch produces about 125 million barrels of beer a year why don't we sing the song, "100 bottles of beer on the wall" joining us now, co-founder and chairman steve hindy welcome. >> thanks. >> tell us about the provision cuts an excise tax in half to help your business and why did it come about? why do you need it >> yes the tax bill is a big boost for

6,000 craft breweries all across the country. for brooklyn brewery, we're number 11 among all the craft breweries, and it will save us about a half million dollars a year that will go right into our capital program and hiring new people i'm pretty confident all of the 6,000 breweryingies across the country will reinvest that into their companies. >> who lobbied for it? >> their own lobby. >> their own lobby >> we in 2008, our association, the brewers association, saw how much money the government spends to create jobs with the stimulus package, and we said, look, we're creating a lot of jobs at just investing in our own businesses if we had a little support from the government, we could really super-charge that. so we started working to get a tax break in 2008, and nine

years later, with this tax bill, it's come through for us the lobbying has been all seat of the pants lobbying. we have one lobbyist, katie marisic in washington, d.c., and literally hundreds of us go up to the capitol hill, a couple times a year. >> bearing beer, i hope. >> of course and visit the congress people. we had more than 300 sponsors in the house, and 55 senators in support of this, coming in to this year. we were all t-ed for the tax bill and it came through for us. >> how will you spend it expand to new york, for instance >> we're expanding in new york significantly. we're making a big investment in our brewing operations here. we also have invested in a brewery in california, in san francisco, and one in colorado,

and will be expanding out west and bringing those brands to the east, and both of those breweries will be expanding their operations as well >> i think this is exactly why this tax bill worked it's that, that half a million dollars is one company out there, and he's going to take that money and he's going to hire more people, have more capital investment that creates more jobs no matter going to work for him or building something and the this is what makes american capitalism flourish in this country, and i love it, and i think -- >> go ahead. finish your thought. >> and this is what's happening all over america. >> are you -- i guess my question would be -- areconstrained are you sitting there saying -- >> i wish i had nor monmore mon >> i could employ more people

because the demand for my product is blossoming? >> we have 150 full-time people and 90 part-time, and next year we were planning to add a few people i think we'll be able to add quite a few more. >> and you need -- >> as a result of -- >> you need them >> absolutely. to expand sales and operations. >> apart from the reduction in excise tax from $7.50 to whoever it was. >> yeah. >> but also the corporate tax rate comes down? >> yes. >> a big help? >> a big help for us, too, because we're a c corp that's a big boost for us as well >> so why do you think the democrats, and you might be a democrat, were so against this tax bill >> i think it has to do with the personal income tax implications i will be paying a lot more personally as a new yorker, as a result of this tax bill.

and i think the delegation in new york state was clearly opposed to this. and that does not surprise me. at all >> that's what happens when you're a democratic state. you got punished us guys in texas, we're doing great! >> look at the guy laughing. >> ah -- my -- >> all right. >> very seldom tillman. >> i want to ask you a question. the craft beer business, over the past -- you have a wonderful business. >> thank you very much i appreciate it. >> it's really taken off, but what has also taken off is the cocktail world you see that in your restaurants. is the relative portion of beer sales down as cocktails have come up in your location >> in my locations, but at the same time, there is just a whole new world of new restaurants that are focusing on craft beers. >> craft beers. >> and craft wines, and i was just telling him

i'm doing a new concept in houston that's going to open in a couple of months that is craft beer and craft wines, because it is a real market out there, and it is where the millennial is going, besides also hard liquor, but you have to build different concepts now it's not, oh, i'm going to go to this restaurant and they have everything. >> have you thought about the beers you'll have at this new concept restaurant >> have me isn't brooklyn. >> happy to supply that! that would be great. the craft beer is exploding in growth the big brands, the mega brands, budweiser, coors, light beers, are declining, but craft beer is exploding with growth, and that's why tillman is opening a craft beer-themed restaurant. >> the big guys have come out with their own "craft" beer. >> trying to buy the craft beer revolution now they've bot ten craft breweries and are doing their best to push those brands out ahead of are

independent craft brewers like brooklyn brewery. >> a good time to sell for you, then >> we don't want to sell we like our business and we think it has a future, and we want to be part of that future. >> you know what's happened is a really popular brewery in houston sold to one of the big boys, and the millennials kind of have turned on them and said, you sold out just like everybody else instead of keeping your independence there's some of that. >> i believe that. >> well our association has developed this logo for independent craft brewers and it's on all the packaging of independent craft brewers showing that we're, you know -- we're not part of the mega brewers. >> i don't want to be a part of them either. >> thank you very much just leave those there. >> i will. >> thank you very much, steve. >> it's a new beer coming out this spring. >> the bel air sour. >> it's a d.c. lightful beer and hope you enjoy it. president trump tweeting

today about strong retail sales numbers and check out miss mystery chart. one of the worst performers during the first ten months of the year and the best since then winners and losers, up next on "power lunch."

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president trump tweeting about the holiday shopping season retail numbers at record numbers, the economy going better than anyone ever dreamt and the you have seen anything else, exclamation point. and kate rogers is looking at winners and losers inside the retail numbers. >> i like inthat, tyler. and the xrt up nearly 3% hit a new 52-week high the day after christmas and decided to dig in and find out who the retail winners and losers were for the year year-to-date, these five stocks are best performers. seller of mattresses, up 183%.

wayfare up 131%. and two discount retailers, ali's bargain outlet and five below up for the year. the bottom five. rite aid, gmc, jcpenney and sears down year-to-date. rounding out the bottom, gentlemjenesc down and naughty and nice list, kicked off the names definitely change these are the top five foot locker, express, abercrombie and finch, all up between 50% and 60%. foot locker one of the worst performers for the year but turned around the holiday season as more shoppers go in to buy there. and gnc, sears and along with

carmax in terms of execution, amazon and walmart really knocked it of you 0 the park both up nearly 60% and 45% year-to-date back to you. >> thanks, kate rogers. one company succeeding in the retail landscape, boxed an online version of the whole sale club founder and the creator of box is with us. >> thanks for having me. >> katie mentioned -- >> selling oreo cookies i see them on the street, they're a competitor still have that entrepreneurial spirit and leery of everyone. >> it's appealing. i don't want to schlep the big giant -- i want them delivered to my door how do you make that sales pitch to somebody all buying from amazon >> anyone who has, one, doesn't have the physical time or patience to go, our core

consumer and amazon doesn't stock large items. we're after that large family. four, five, six in your family or b-to-b, a big component of our business as well especially cnbc, the green room, e won't order $30 million worth of power bars or the coffee here in the studio is probably not from amazon. where we as a whole saler come in there. >> your business involves taking care of your workers >> right grew up in a working-class family, started in my garage and i was just there this morning and see the hard work people put in day in, day out and i know as an entrepreneur, yes, i lead the company, right but we have hundreds, you have thousands, tens of thousands working for you that power the business on a day-to-day basis and that's where my heart and where my mind usually is. >> paying tuition for the kids >> right. >> a big one. >> a large portion of my personal share in the company, dedicated towards that fund. we pay for life-changing events

and unlimited paternity and maternity leave. an interesting few years luckily there's been no abuse of the program and it's going strong to this day >> so -- what product, when you -- tell the public what people would call you and buy, talking bulk this and that what is your top five selling products >> paper products. no one enjoys lugging home a 24, 36 pack of paper towels or toilet paper paper products paper towels, paper plates, core sellers, but foods these days actually has taken over a large portion of our business. >> early on. >> so anything from oreo cookies to organic cookies, organic chips. everything you can imagine's we sell an 72-ounce, like, the size of two basketball tub of pork rinds yeah. >> wow. >> that thing probably has like 4,000 calories in it. >> units of that in one order or

considered in and of itself bulk >> that is one people buy multiples of that as well so if you guys come to the facility you'll see the totes going around, you're like, wow that's a lot of calories in one tote, but sometimes, you know, also the skinny pop with the pork rinds i know when the cheat days happen depends. >> is your customer in manhattan or out in connecticut? >> started urban only. i didn't have a car to get to costco when i moved to manhattan and knew i wasn't paying $6 for a box of cheerios at the local bodega right? now we've spread out close to 30 million households who don't live within 30 minutes of a costco. what do you do stuck paying those prices with the rice of ecommerce, that's not a tenable solution right? order it online. >> two questions how do you break through to a big business like tillmans and

attract him to use you as opposed to, i don't know where you get your provisions. whether cisco, whoever, i don't know who the suppliers are. >> could be boxed after this. >> and unboxed. >> right. >> how do you break through and convince tillman >> and how do you have the purchasing power to be competitive? >> a really good question. over time i remember my first-ever meeting with big companies, most senior person i met was like the intern. maybe i can meet his boss? we found, you cover it all the time the consumer companiesacy well as retailers are under pressure to go digital. look at digital selling clorox wipes, oreo cookies. >> cleaning products >> not a lot of folks sell this stuff online at massive scale. pair that with our scale, massive. because it's limited skew.

sell an item, we can sell 1.5 to 3.5 x that item even versus amazon we funnel everyone into a few products. >> a lot of pricing pressure in consumer products these days for every product you ship, do you make money or are there loss leaders? >> there's definitely loss leaders for us >> toilet paper, for instance? >> exactly. >> sell the pork rinds at premium? >> margin on toilet paper, non-existent as thin as toilet paper. how about that >> a one-ply toilet paper. >> actually, we make a gross margin on every box we sell. end of the day, we ship eight to ten items and this is how we can be competitive ammortize, and get an incremental discount. >> what do your warehouses look like robots or humans >> it's a marriage of both

some facilities are more human than robots and some are more robots than human. the one here in new jersey is the one that's more robot than human and when you walk in, it's full-on you had to switch it to all humans, would your margins go down? >> would you look to make more in order to preserve your margins.automated, we kept everyone on staff. we are doing the best we can sometimes, i was doing a tour this morning, we show this area where there is no humans within 40 feet of this machine anymore. sometimes that's the reality >> sure. >> instead of putting them out on streets, can you train them for customer service or train them on this >> those are the questions that we reques we ask sometimes the answer is no

>> congratulations >> thank you for coming by >> the ceo of boxed. >> how much money did tim cook makes last year and what demands and whe eris apple looking to expand next? we'll answer those apple questions coming up at "power lunch. so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes?

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apple's board requires tim cook to fly private everywhere he goes. josh llipton >> mr. cook is a pie power the board imt implemented a new policy, cook has to use private air crash for all business and personal travel, personal areal traf travel expenses were $93 million. i can tell you i have seen cook's private security guards at event, he's not a man you want to mess with, tyler >> his compensation is tied to certain revenue and profit targets set by the board which the company did exceeds.

revenues for fiscal 17 is 12.8 billion cook's total pay out for the year including the value of vested shares came in at $102 million >> tyler, back to you. >> there is the number i thout when you saght when youy $12 million, well, he's a bargain at 12 million. at $102 million, he's getting paid of what he's earned >> josh, before we let you go. >> businesses in saudi arabia, they sell to saudi arabia but they just don't operate there. >> melissa, this is apparently part of muhammad's to give the make over, he's looking to amazon and apple to make

mission. that could be bad news for some local players that provide the technology right now and amazon, of course, dominating the market for cloud infrastructure which allows companies to off flow their competing, amazon did not respond for request for comments apple, reuters are reporting that tim cook's company could soon have a direct footprint there that a licensing agreement for apple and investment authorities could come as soon as february and that official retail store could open there as soon as 2019 sources are familiar with the situation are tell me that time line at least for the store opening is too aggressive. guys, back to you. josh, thank you very much. should you be one of those people rushing out to your town hall today, tomorrow to prepay your property taxes before the tax law takes in effect, january 1st. will it save you money

we'll get an advice from an accountant coming up nfl rating starts to slip in 2017 nba have seen a big boost. just in timeor f the buy of rockets. we'll talk with sports tillman and more, coming up on pouchb. "power lunch." so, they get their shows... let's go, girl! you're gonna love this bit! and you get yours. watch however you want. on your phone, tablet, or tv. for just forty bucks per line. with no extra charges. let's rock this joint! all on america's best unlimited network, t-mobile. when the founder distill needed to raise money, they

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i am melissa lee, to prepaid or not prepaid a lot of confusions across the country surrounding the new tax laws the nasdaq is on track to do something it has never done before it is up 11 of the 12 months tech have been super hot the nba is on the rise while the nfl is still struggling. will the playoffs bring football back in a big way. we'll go inside the number the second hour of "power lunch" starts right now and welcome to hour two of "power lunch" everybody. i am tyler mathisen, glad you can tee wibe with us today u.s. market is trying to make some gains on the next to last trading day of the year. there is the dow of 35 points

and s&p 500 of 500 of a quarter of a point nasdaq is higher by 3.5. >> nasdaq splits between games and technology between a apple and facebook.n netflix is on a tear, it is up 3% today up $6 or so. two energy stocks leading the s & p at this hour chesapeake did not have a great year and a range of resources up to 3%. >> bitcoin, the crypto currency is now trading near $14,000, melissa. many homeowners are lining up to prepay their property taxes. homeowners are opening into lock their 2017 deductions before the cap due is for the new tax law

eric chemi is live with the story. >> reporter: i am in the county of the highest property taxes in the entire country there is hundreds of people in line here all day long seems like the entire town have been here paying their taxes here is the thing. it is complicated. it is village taxes and town taxes and state taxes, not all of them. do you know what those numbers are assessed for 2018. it is a partial payment of the things that they know. we talk to a lot of the people who's been waiting in line today. here is what they had to say of their experience >> to get the deduction which we are not going to be allowed to get next year. >> does that make sense to save money? >> everyone is trying to get it in so we can write it off in our taxes next year. once january 1st, comes that opportunity is loss. >> we are trying to save money not complicated. a lot of the people that i talked with, i asked them have you talked to a tax plan before

coming here? a lot of people say no, we are going to come and see if he will pay. a lot of people here pulling out their checkbooks this line is behind me, if you don't know what your bill is, you will go there and get your bill and you go to another line and that's where you pay at the tax collector's office have complicated >> eric chemni, thank you. >> should you consider prepaying your property tax. jeffery, welcome, it is complicated and depends where you live and whether you itemize or don't itemize it significantly depends on whether you have been or subject to the tax and whether prepaying this would throw you into the amt. that's right you maybe online today in cold weather waiting outside for no

reason because that additional state and local income tax deductions may push you into amt where you were not subjected to before >> the amt is a whole shadow tax system that people don't understand it is like a second tax code >> and when you prepare a return, you are really preparing two returns. you are preparing the regular tax return and the alternative minimum tax return people pay the higher of the two. it does not take into consideration. so even if you make those payments now, you are not going to get benefits for it if you are the amt. is this a simple call for your accountant >> did i pay amt last year or not? >> unfortunately, not. you may not have been an amt last year and that's a good start. that additional payments now could throw you into amt and we don't have enough time there is not enough time if you have 500 tax return that you do in a year, you cannot do

500 projections that you don't know yet it is deductions that we are not sure it is difficult and there is a lot of best guessing going on right now. >> let me ask you this of the new tax bill, is the amc better for people or worse for people >> new tax bill eliminates the amt for the individuals. it has such a high exemption and a high phase out of the exemption. this is the last year that most people will see that of course, it phases out and we'll go back to the old one that amt goes away for the individual largely in 2018 >> yes >> if you think of prepaying four taxes this year, what matters is you will be subjected for the amt. if you do itemize and are a high property property taxpayers and

high income payer, you should not be paid, should you? >> the answer to that is yes most people should be online in the cold weather prepaid >> the wrinkle here is, i understand because i did it yesterday. >> i did mine. >> but, anyway, you are only going to be able to claim the portion of the tax that has been billed or assessed and not the second half of the year where they don't know what the final bill will be what are the odds if you claim the whole -- >> i was going to say something foul there but i won't >> the whole thing that the irs would never catch you. >> that's a tough one. the answer is a small likelihood very few returns today get audited and the irs have been gutted there is not enough of resources to do this on an ongoing basis they have bigger fish to fry in most instances i don't think that's going to be if you have claim a property tax

write off of $20,000 >> sure. >> in 2017 you claim $52,000, that may flag your return. >> how much are they going to do of what's assessed. i think importan things >> just not the people to do this >> the administration is not lining up to fund the irs. >> how many clients have been audited the last couple of years? >> such a small percent. >> that's where you can get money. >> sounds loo i caike a man whon

audited. >> let me ask a separate question, if i pay estimated state and local income taxes. >> sure. >> should i prepay my first quarter's income tax this year to be able to claim? >> you should not pay the first quarter income tax if you do have a free quarter estimate for 2017, that would be beneficial to make before the end of the year. >> even though it is not due until after the first >> the provision of the law who says you cannot deduct income taxes. it was specific of income taxes for 2018 that are paid in 2017 so, the property taxes, okay, income taxes for next year, no good, wait until next year to pay it >> clear answers, thank you, jeffery. really, really good, helped me

>> we were asking for friends here >> thank you, jeff >> here is what's coming up. the bowl will keep roaring in 2018 there is one under performed sector a check up on the healthcare sector heading into next year. >> the nba seeing a bump while the nfl is stumbling. all that and more is coming up on "power lunch. cannot live without it.

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all right, stocks are up a second day with the dow on pace

to post. it is six straight weeks, lets head to bob pisani, roberto. >> hello tyler, happy new year here is what's important you heard for some of the txdot, we are seeing a lot of stability for the last few days. what's more stable in the last few days nvidia and broadcom or sky works. right now stable is important. elsewhere, remember the big move up in retail that we saw unusual in december to see retail stocks to go through the roof they're starting to crack a little bit they are down again today, not big. this is starting to move to the downside and this is a little bit more than normal behavior than i would expect for the

month of december in retail business not that it is moving any where, the home builder just had a terrific this group is up about 20% of the last few months. and a lot is better of tax issues for them. there is an itfs of this and it is mostly home builders and it is up 55% or so on the year of big accelerations for the end of the year it is not just tax cuts for these companies. we had low rates and we had unlimited supplies we have been talking about that all year diana olick have been all over that >> it is happening and do remember the public builders of a large part of the market 27% or 28% small groups control a huge amount of construction bitcoin here you heard south korean government talking about maybe new rules to regulate

crypto currency. >> no now 14,000 for that. i want to remind everyone, much of these and almost 50% of bitcoin occurring in asia and japan and south korea. when south korea authorities thinking of cracking down, that has an impact of the last 24 hours and where it is coming from bear in mind, guys, back to you. >> thank you, bob pisani what are some top investment ideas. >> paul, great to have you with us. >> good to be here >> part of your thesis that you want to invest of energy for couples or different reasons this is a sector that's really been beaten up overall >> yes >> so i mean if you look at the energy sector from a long-term perspective of the long-term going back to the early 2000s. the sectors does well under

republicans and less regulatory burden so they're the biggest bi beneficiaries and biggest spread of the tax rate. the new corporate tax rate under the tax reform bill. there is some positives there. its gotten a little bit of a lift in the last two weeks we are looking to add exposure to the year ahead. >> if you add to energy, what do you take away from >> you know one of the sectors that we been under way and we continue to be under weight is the consumer stable sector we think of brands that are less powerful among younger consumers and the sector trade at which evaluations comparing to other sectors of the markets when you have average state consumer markets trading more

richly and a lot of txdot and a lot more growth in their business models and i think you have a better ridiculosk rewardn some of the txdot. >> do you think the emerging markets will do well next year >> i think as long as the dollar remaining weak, that's good for the emerging markets as you see global growth continued to do well, people are more just as people are bringing capital into the u.s. during the financial crisis, that capital is fleeing, dripping out of the u.s. economy now it is going to foreign markets so as you see the dollar continues to weaken, the markets will do well if you this onk of the under lie markets. you will do well >> you are right paul about bitcoin or i should say the crypto currency rates and not

just bitcoin >> interesting way of looking at it what do you foresee here, what really caught my eyes is that you write that all bubbles in the past lasted much longer than any one f's fix >> to try to time on top of a mania phase which we have seen the last two months of the crypto currency. it is thoord tihard to time it. if you look at any timing, but you know you are looking at any new technology, it is not always the first movers that end up doing well cars have been around for 15 years before ford came in. semiconductors and intel is a big name there semiconductors have been around for a few years intel. you had aol and you had yahoo, the first publicly traded to play the internet. and aol is gone.

>> and i think will bitcoin be the way to play this going forward, i don't know, it is still a very clunky technology it is hackable and transaction fees are high. >> wait a minute, what's hackable >> these exchanges in these accounts there is not a day that goes by where you don't hear about an online exchange being hacked into i think in that respect, there is a lot of things that need to be improved in the technology and in the space overall before it gains widespread uses transaction fees for bitcoin is about $32 in transaction you cannot tran sack business when it is that much money >> what are your thoughts in bitcoin? >> a lot of people have made a lot of money in it is it going to be around for a few years? >> i think it is here to stay. it is no different than anything

new. if everybody forgoets if you put dot-com at the end of your name 20 years ago, your stock goes up we have a lot to learn about it. it is not ensured by the government when you think of a dollar, go to the bank to drive a million dollars. they don't have money. that's all bitcoin is, it is paper. it is not ensured boo i ty the c today. until they are ensured, a lot of people are going to buy it >> can you see a day where you process payments and accept crypto currency? >> absolutely, there is already people doing it out there? >> it is real but it is just new. >> i remember somebody walking in my office and says the world is going to change and there is

this thing called the internet that's not long ago. it is something new and every moves at a quicker pace. >> paul, thank you >> good to see you >> paul hickey >> good to see you, too. >> take care >> healthcare up 20% what can we expect next year from healthcare. your 2018 play book is ahead and the new tax law is hitting state against state in the battle for business and workers, a look at which could win or lose under the new ground rules ♪ (news anchor) downtown traffic is still bad. expect massive delays. (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. for every hour that you're idling in your car,

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there are only two things in life that are constant and new change bertha cooms. 2018 is uncertainty for healthcare here is what to watch? >> m&a, front and center regulators blocked to the big merger consumers, will they

block the cvs $69 million deal to buy aetna nonprofit hospitals are gearing up for big deals, too. if approved, watch for more egg mergers as others are playing defense. amazon will impact the healthcare supply change, whether or not the online giant gets into the pharmacy business. the amazon threat and regulatory scrutiny over pricing will keep pressures over pharmacy benefit firms and holding down costs and prove their value. three, obamacare won't go away bough jones' win in alabama i cans makes it tougher for republicans getting a win. another year of uncertainty.

>> so far, obamacare enrollment is still looking strong. 8.7 million people are paid up for coverage on healthcare.gov >> basic changes are not going into january healthcare firm, the big question is, how the corporate rates stacking up against exceptions and cuts and other things tyler. >> all right, bertha, thank you very much. a big year for the sports world. declining nfl rating and soaring evaluations of franchises. the view from the inside, tillman will give us an outlook for the sports business as a new t e ug achise owner, hboht hoteam on the rise over cable for 17 years running. but some people still like cable. just like some people like pre-shaken sodas. having their seat kicked on an airplane. being rammed by a shopping cart. sitting in gum.

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i am kate rogers, here is your update at this hour an alabama judge blocked republican roy moore's -- moore lost after being plagued bisexual harassment allegations on charges he denied the city will pay more than

a million dollars to settle charges, causing customers to sell shares they would have bought citi did not admit any wrong doing. extra weekend helps retail stores showing foot traffic for the last saturday before christmas or so-called super saturday if you are not cold enough already, this video should help 500 swimmers across the world came together from across america for competition. that's perfect swimming weather, right? >> that's the update at this hour, back over to you, tyler. >> thank you very much the new tax law could shifts jobs and deductibletis and givig tax states a new edge and jobs

nowhere are they watching it closely than in california where we find scott cohns. >> reporter: hi tyler. >> california outside of fresno, you know we look at america's top states this year which states are vulnerable, california is among them, new jersey and new york, minnesota and ohio, these are states that are higher taxes and workers available. colorado and south dakota and new hampshire and indiana and low tax states with workers shortages. initiative food of where we are at and manufacturing production of the country they had their pick of anybody a little over a year and a half ago or so, this place was destroyed by fire, they have no shortage of companies luring them away, they decided the

rebuild. >> the ceo, you are staying in california but people are still calling you, are they? >> they are still calling. >> we looked at nevada and nebraska not so long ago >> reporter: why >> there is a lot of reasons one we compare of what we were getting from the state of california through fresno economic development corporations we looked at our materials are and of organic baby food we looked at our work force and we found that by putting off all three together, we have in the state of california and county >> reporter: now we have this huge tax law which is going to make it more expensive essentially for your employees to live and work here and creating a lot of issues any second thoughts? >> new york cio, not really.

our workers. they were not taking a stand we are focused more on automation and improving on people >> in a broader sense as a businessman here are you worried of california being less competitive because of the pressure? >> i think it depends on where you live for us, we live in central valley, the cost here is quite aly less from what you hear in los angeles and san diego. here we have moderate prices for houses we don't have a high property tax. i think we are a bit different. >> quickly, you said automation

is the key you are not hiring as many people as you have before? >> no, we had 150 people we are looking to add moranothe 50, doing the same amount of work that we have of 150 with that and what's really great about this is we'll train them they are hard workers and they'll go from being a skilled worker and their wage wills reflect that >> reporter: johnny, the ceo of nicinitiative foods'. thank you very much. >> tillman's taxes is one part of the puzzle in determines business costs you do business, i don't do it in all 50 states but certainly

in california and new york and new jersey and florida where your home basis how much hardier and costlier it is to do business in a state like california and new york. when you take everything together, real estate and regulatory burden than it is to do in a state where it is less punitive >> it is interesting because it is a lot more expensive to do business in new york and california and of course >> but, you are there. >> it is also where the money is and where the people are you do a lot more business there. >> in texas, you don't have a lot of 10 or $15 million grossing restaurants in new york and la, you do even though it is a lot more expensive to do business you make a lot of them >> do you make more money? >> not percentage wise >> some of the locations making

more money just because you do so much business population and money is like nowhere else in la and new york. it is just the way it is >> it is just the way it is. >> what do you think is going to happen as business as states compete more aggressively for businesses to domicile there, texas' governor is going back and competing with florida's governor and they have been successful at it with toyota >> it defepends on what kind of business it is if it is a heavy labor business that's not expensive labor you don't have to may as much in texas. number one, it truly costs 30% less to live in texas. >> if i transfer somebody from new york and la, i think it is like 37% salary increase that we have to give them. that's a fact. that's how much more it is to

live here. >> texas is very competitive because the minimum wage is different there. new york and la, are causing us to have to lay people off and find ways to bring more automation in because you cannot afford to pay, the cost is so high >> tilman, thanks. >> 2017 was a big year brian debrock, much more when "power lunch" returns. noon? eating. 3:45? uh, compliance training. 6:30? sam's baseball practice. 8:30? tai chi. yeah, so sounds relaxing. alright, 9:53? i usually make their lunches then, and i have a little vegan so wow, you are busy. wouldn't it be great if you had investments that worked as hard as you do? yeah. introducing essential portfolios. the automated investing solution

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prevagen. the name to remember. welcome back to "power lunch. what can we look forward to next year first, sports gambling legalized. after two decade battles, legalizing gambling across the nation creating a multi billion

dollars industry taking down big time schools and big time coaches the naacp tries again to institute reforms to make all the problems go away >> big baller throws up. lavar ball takes his kids public in 2018. ticker >> triple b. >> for more now on the business of sports, lets bring in mike weiss, senior writer, of the undefeated >> the struggles that the nfl has had and both in sort of the public squares and ratings, these are the nba, talk us through this, why has the nfl seems to stumble is there something fundamentally wrong with the product

>> there is a myriad of problems that's been caused by tone deaf owners and tone deaf commissioners, god bless roger goodell for getting a extension. a that he also, the concussion issue which they hid from players for year and they finally began to address you don't need to play tackle football to have a decent nfl career you see it in this and you talk to mothers, does not matter if it is the suburbs, there are parents who won't let their kids play tackle football the poll is going to drive up and it is a saturation of the product. you contrast that with the nba, the nba just feels like its got so much star power right now this is as popular as i can

remember the nba since it is been and michael jordan retires for the second time. >> when you think of the, tilman, i want you to jump in here one of the things that mr. silver and mr. stern have done, they have emphasized internationalization of basketball and the nba product tch that's a differentiator from the nfl. it is not the same american football is not the game internationally basketball. >> mike. >> no, i am in complete agreement that at one point, there was a time when david stearns spent all his time putting an end to international development. you see from palestine to israel to china, there are people

wearing jerseys of stephen curry and james harden and everyone else in between. so you think of what the nba have become and how it is becoming a global product and how frankly it is much easier to play than football internationally. it is the second most popular sports if the world next to football and soccer. it is a swing. in ten years, i will stake my job on it. the nfl will not be as popular in the nba in ten years >> that's a big claim. >> you are happy to hear that. >> tieing it together of the internationalization of the game >> the visibility of the stars

had a lot to do with it. name the big five nba stars. it is easy to name it. part of it is they know what it looked like. >> they can see them >> they seem to get more attention out there. the nba does not seem to have a lot of issues. ta it is a younger audience and everything is younger today. >> i was going to jump in tilman and say one of the great things of progressiveness of nba owner is their acceptance, it is okay for athlete to speak out and reflect their opinions in respect of how they feel about them there is an openness and willingness to understand that you do have a life beyond the court and not necessarily, everybody has to agree on things when they walk into the locker room together except for being a team on the court.

i think that adam silver and you yourself exemplify that in the way that the nfl can learn that's the way that the nba has created and built around stars in a way that's harder for the nafl nfl to do it when you look at the great stars in the nfl, they are older, roethlisberger, brady, carson palmer, big players there are getting older and the nba is bringing on the beats, the carl anthony and kyrie irving and they got brands that a lot of nfl guys don't have >> you don't have a lot of wide receivers are complaining of not getting the ball it seems right now a little

friend friendlier i don't know if the nba team is going to worth more of the nfl team i would own an nfl team tomorrow if i could, okay i would not give up my nba team though >> they're both just great sports >> the governor of new york is waiting. i want to come back and talk to tilman who's both in the nba and the gaming business of the potential of legalize gambling thank you very much, mike wise >> a legal battle maybe brewing, andrew cuomo says the state may challenge the law and raise the state's tax code andrew cuomo, thanks so much for joining us >> thanks for having me. happy holidays to you. >> happy holidays to you and happy new year you think this discriminates

against democratic states? >> um, well, it is not that i think,s it does, right >> look at the bill and they started by saying that they run and do a cut for the middle class and working men and women. that was a switch, it had nothing to do with the working me men and women. it gives a tax cut to the rich and corporations we hope corporations will pay in term of higher wages yes, they might or they may dividend it out or buy a house in the south of france if you wanted to help, the workers, you would have stipulated in the law and we'll give corporations of tax cuts but 50% of it has to go to higher wages the way they finance it was by rating the blue states, why? >> the senate does not have any senators from the blue states. so they came up with a

convenient rational will raise money from the blue states and we'll give it to the red states. so california and jersey, they are paying a penalty we lost the deductibility of our state and local taxes. which means, the taxes you pay to the state and to the local government are then taxed by the federal government >> all right >> it increases our property taxes for roughly 20 to 25%. i think this potential legal question on that, legal protection under the law if i pass the law under new york state that says republicans pay one tax rate and democrats pay another tax rate and the republican rate is higher than the democratic rate, it will be ludicro ludicrous. that's in essence of they have

done here. >> governor cuomo, we noel and all of us live in a blue state that's impacted and all of us are going to feel the pain of salt going away, at the same time, what you are describing sounds like a scenario of politics these are the rules of the game and majority wins and the republicans are in the majority. how do you put forth the case that this is unconstitutional. >> because politics does not trump the law, right you have the constitution and you have the law you have due process, you have equal production you cannot use politics just because the majority controls to over ride the law. i have, i am a democrat and i am a democratic state, i cannot say republicans pay a higher tax rate, too bad and democrats are in the majority. it violates due process and equal protection

the same applies to congress they're not above the law, right? we have a constitution of the united states, we have a body of law. you cannot violate that, you are not a king and you are not a monarchy you live withi >> yeah, i would -- let me ask you a couple questions, governor, i'm so glad you can be with us, and i'm really not taking a side on this, but i guess one rejoiner to what you just said would be that you would see it as de facto discriminatory against blue state residents, but the law that limits the deductibility of state and local property taxes or state and local income taxes applies across the country no matter whether it's a democratic state or republican state. that's number one, but i'd like to get -- i'd like to get your answer to that, then second, when we've debated this, people from low tax sort of heartland red states, whether it's indiana or whether it's iowa, or whatever, they would say that

there's a fundamental unfairness in allowing the taxpayer from new york or new jersey or california to deduct so that they, themselves, then on an equal amount of income pay more federal taxes than we do >> yeah. two points >> right. >> one, you can come up with a law that applies d disproportiona disproportionately i come up with a law that says, if you own a cadillac, you will pay a liar tax yes, but i know that 80% of the people who own cadillacs are republicans. so there's a disproportionate application of the law second, in terms of people in one state against another state, there is no state in the united states of america that pays into the federal government more and gets back less than new york state.

we send in $48 billion more than we get back. we subsidize every other state this actually aggravates that injustice by having us pay now $16 billion more in the loss of the deductibility of state and local taxes so we subsidize everybody else now, we are a richer state so we pay a higher level of federal tax, but it's not even close as to the equity among the states we are the number one aggrieved state by getting back less than we send in we subsidize every other state and this aggravates that injustice. >> governor? we're out of time. >> yes. >> i got one last quick question are you suing?

>> we're looking at the law right now because i think there are serious legal questions. >> all right governor, thanks so much for your time. we do appreciate it. >> thank you. >> governor andrew cuomo. >> happy holidays, happy new year. >> you come from one of those states that tyler was talking about actually, tillman. with what do you say to us who leave here griping about the elimination of s.a.l.t.? >> i think the governor has a good point okay and you have a good point, tyler, that why are you paying double but that's just the way it is. >> that's just the way -- well, i'm getting used to that idea, tillman, because the governor made the point about double taxation and that's the one that sticks in my craw, as my mother used to say. and that's the idea that very suddenly i am going to have counted x tens of thousands of dollars that i pay in tax to the state of new jersey, one way or another, i'm going to have that counted as income.

i can't use that income. >> right. >> it's gone it's spoken for. i owe it or they're going to throw me in jail so that's where the double tax gets to me is that my taxable income just went up by the amount of tax i pay to another taxing authority if i -- if i were lucky enough to pay that tax to a foreign country, i would get a credit. i would get a credit >> i would hate to think it was done to blue states, but maybe it was >> well, it's been a longtime issue that people have not -- have seen it as a subsidy to the high tax states. anyhow, we have to move on because we have so much -- this has been a fun hour. big push to legalize sports gambling under way rhtig now he owns a casino, owns a sports team we'll talk about that. [vo] when it comes to investing,

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a brand-new season of "billion dollar buyer" kicks off january 3rd, next wednesday, on cnbc the season premiere, tillman visits too pretty, an atleisure company withat packs a punch. >> full time olympic level boxing coach a few months ago i started never too pretty, athleisure apaparel line so god tod to see you. >> i didn't know i was going to

box today, i thought i was coming to buy apparel. i've never done real boxing before i'm just a street fighter. >> oh, woo okay the brand carries halter tops, sweatpants, leggings, boxing gloves, hand wraps good >> is i'm breaking a sweat >> don't forget, new season of "billion dollar buyer" premieres january 3rd 10:00 p.m. eastern time only on cnbc. >> what would the connection of a product that she has be to your business? why would you -- >> in my retail stores, you know, buying the athletic wear, athletic wear is so in right now. i mean, women put it on and wear it all day and it's just -- it's athletic wear today you know how -- >> it's true >> it's fashion. it is so huge. it is truly fashion today. she has this great little company in california and look to see -- >> we'll find out on january 3rd. >> can't wait.

>> we'll all be footballed out by then. we'll tune in on january 3rd to watch. let's talk one -- tie it off with a thought about gambling and a professional sports. you are in both businesses is it inevitable, new jersey is going to get approval to do it, is it inevitable that we're going to have a lot of betting on sports in this country? >> i think it's going to fall and it's going to fall quickly and right now, you can -- people don't understand, you can only legally bet on a sport in the state of nevada. >> yeah. >> okay? it's a federal law the states would let you do it, some of them, but it's in front of the supreme court, i think it's going to change and you're going to see new jersey, mississippi, you're going to start seeing -- >> you're ready for that, you're ready for that change? >> we are 100% ready for it because why are states and the government giving away billions to all these offshore companies where people love to bet people love to gamble. why not take that as tax income?

okay and do it legally. anything that's done illegally, and everybody does it, we need to make it legal and get the tax dollars. >> get some tax dollars, maybe they can help me with my property -- >> it's going to happen. >> been a pleasure, thank you so much. >> thank you, guys. >> happy new year. "billion dollar buyer" next wednesday. thanks for watching "power." >> rr >> all right "closing bell" starts right now. hi, everybody, welcome to the "closing bell," i'm kelly evans at the new york stock exchange. >> i'm bill griffeth time to sell your winners. i mean, technology has been the best performing sector this year the nasdaq, in fact, could post gains in 11 of the 12 months this year. that's something that has never been done before we keep saying that a lot this year, don't we >> yeah. we know it's been -- we know we've seen a lot of records. stats like that are the real eye openers. >> that's for sure we have a bull and bear on technology coming