stuart: don't ferret, send in your friday feedback stuff. send us a video mail or send us anything you like, varney viewers@foxbusiness.com. that's where you will find us, okay? the we take any and all comments. keep 'em short, you might get 'em on the air. one thing i want to say is david asman -- [laughter] who is sitting in for neil today, may not contribute to friday feedback -- david: i was just about to! i love the way you and susan li have this love/hate thing going on. [laughter] my wife and i are always laughing at it. it's great stuff. that's our particular favorite. i just thought i'd throw that in there. stuart: oh, i'm in trouble now, lad, deep trouble. [laughter] david: good to see you, my friend, thank you very much. we'll see you tomorrow. welcome to cra suto coast to coast -- "cavuto coast to coast." the dow holding steady the, on

pace for a new record, but the nasdaq and s&p 500 getting hit by big weakness in big tech. our market wizards are here to break it all down for you. plus, a battle over the border. democrats try to move forward as the administration is pushed to allow more access to migrant facilities from the press. there is a big to-do about that. and suing over stimulus, ohio's attorney general says parts of the relief bill are unlawful because it affects plans for state tax cuts. he joins us coming up. our top story, we are following democrats pushing for inflation reform piece by piece. the house set to vote today on two bills that would provide a path to citizenship for dreamers and immigrant farm workers. chad pergram is live from capitol hill with the latest on this. hi, chad. >> reporter: good afternoon, david. well, the house majority leader,

steny hoyer, said the house will papas a comprehensive immigration bill in the coming months, but they lack the votes to do that yet, so democrats are doing narrow bills for you, one grants a roadway for dreamers. >> it fails to address the real need for additional security measures on the southern border. and above all, it's not the kind of comprehensive and bipartisan solution to immigration that the nation so desperately deserves. >> reporter: the democratic whip, dick durbin, concedes problems at the border come complicate efforts to do any sort of immigration bill in the senate. >> it's challenging. and the new administration deserves an opportunity to respond to it. but i think we need to deal with this reality at the border. i've said to the administration come forward with your plan. >> reporter: the bill up today in the house provides legal status to my farm workers --

migrant farm workers. it's notable that the gop is. whipping against the dream act but not against the farm worker bill. expect some members of the gop to vote yes on the farm bill. david: that is very interesting. chad, good to see you, thank you very much. well, all this is coming as the biden administration is reportedly covering up the full extent of the border crisis by limiting what border patrol can share with the media. listen here. >> is the white house struckinging border agents to refuse ride-along requests from reporters? because that's what a lot of our folks on the ground are hearing. >> it's coordinatessed through the department of homeland security, and i'd point to them -- >> but, i mean, our reporters used to get ride-alongs, and you all came in and promised to be the most truthful and transparent administration, so if you all wanted to grant access to the press, couldn't

you just tell dhs to do it? >> again, we fully support transparency, and i would encourage you to talk to department of homeland security about press access at the border. david: it's them, not us. let's get to former acting deputy secretary of homeland security, a man who would know about this, he's already shaking his head, ken cucinelli. [laughter] so, ken, if the -- >> oh, my gosh. david: -- president of the united states called and said can you get some members of the press to accompany border patrol on some of these missions, could you possibly say no? [laughter] >> no, not really unless there was some operational reason to do so. i mean, this is consistent with -- jen psaki is, i mean, i hate to say it about her, but she's just lying from the podium in the white house. david: well, specifically tell us why. that's quite a charge. >> sure. well, but, i mean, you just said

it yourself, they -- the department of homeland security implements the president's policy, and she's in charge of communications for the executive branch. and so it is absolutely -- can you imagine if we didn't let, for two months didn't let the press into our facilities? can you imagine what that press room would have been like every day? it would have been a madhouse. a madhouse. and yet their supine, little docile biden-supporting, you know, press officials who just sit back and do nothing, but even they're getting a little bit fed up with it. what jen just said is an absolute falsehood. she absolutely can grant that access. they've decided that they don't want to, and so they create this bureaucratic run-around. and it's, you know, that's not a new tactic. but it just looks a little embarrassing coming from the

podium at the white house. david: well, and again, even the media that is favorable to this particular administration -- >> right. david: -- that would comprise, i would say, about 95% of the media -- [laughter] even they are beginning to have some serious questions about, you know, how serious the crisis is. and very few people fail to call it a crisis even in the mainstream media. i'm just wondering why do you think democrats willing to absorb the political pushback of this crisis down at the border? what is in it for them? >> sure. so there's two things in it for them. one, this is appeasement to their radical left base, and they came in with this in mind. we told them during the transition that if they opened the border like this and they gave these sorts of messages, that they'd be swamped. this is not only predictable, it was predicted. we told them it would the happen. and they knew it. i that had a system in -- they

had a system in place that we had built. they systematically, in a matter of weeks, destroyed it. we were just talking about jen psaki. she says we inherited a broken system. that is exactly the opposite. they inherited a system with lots of pieces in place to deal with illegal immigration, and they ripped every single one of them out. they destroyed them. it's easy to destroy, it is the hard to build. it took years to put all that in mace. it was effective -- in place. it was effective, and they destroyed it in a matter of weeks, and the consequence is a flooded border. that's point one. point two, they want all of these people coming over the border so that they can give them amnesty in these amnesty bills. it'll be sad to see any republicans cooperating in that, but i think your reporter, chad, is probably right. there'll be some of those. and they also in the voting bill, the corrupt politicians act, h.r. 1, they're going to register then all to vote as they go get services in states by mandating that every state

agency of every state has to register these people to vote. even if it's illegal for them to vote. once you've registered them, it's awfully hard to -- kay they'd just to be clear about what you're saying, part of h.r. 1 says that you immediately can register to vote, excuse me, if you are getting a driver's license, for example. and driver's licenses in many states are given to immigrants without papers -- >> right, illegally. david: yeah, illegal immigrants. so, in fact, there is an opportunity there. but on the other hand, states have not legalized voting, most states anyway, have not legalized voting for unregistered immigrants. >> well, david, h.r. 1 passes, fundamentally what h.r. 1 does is wipe out your tate's election law. -- state's election law. it replaces it with what's in h.r. 1, and you're right about

dmvs, but it's virtually every state agency, and it's an automatic registration. for those folks not to be registered to vote, they have to pull themselves out. and that is not what the democrats expect to happen. they expect lot of these people to be swept on to the voter rolls, and at that point it's very hard to stop the voter fraud. they're building a system in inment r. r. 1 that builds in vr fraud. david: ken, we've run out of time, but you used to also be acting director of citizenship services, and one of the proudest moments of my life was watching my wife become a u.s. citizen. >> i'll bet. david: she had to jump through a lot of hoops. >> yepment played by the rules. david: testifies an immigrant from -- she was an immigrant from central america. it was so worth while. it would be a shame for this country to bypass those rules -- >> absolutely. david: and we've got to leave it

at that. very interesting discussion. >> boy, it is a moving day for all those folks. david: it's one of the best days of my life and my wife's as well. thank you very much. well, the biden administration also facing down tensions with china today. white house and chinese officials are meeting in alaska this afternoon where the chinese are expected to seek the rollback of trump policies. rich edson is at the state department with more. rich. rich edison. >> reporter: good afternoon, david. secretary blinken is on his way to alaska. this is going to be the first high-level meeting between officials during the biden administering. the secretary of state has said sol of the purities he wants to bring up, he's been talking about while traveling in east asia consulting with senior officials in japan and south korea. the secretary says the united states is focusing on addressing china's assault on democracy in hong kong and taiwan, wights

abuses -- human rights abuses, and aggressive action in the south china sea. a campaign to compel kim jong un to surrender his weapons. >> china, so it has tremendous influence. ill hope that whatever happens -- i would hope whatever happens going forward, china will use that influence effectively to work on moving north korea to denuclearization. >> reporter: the chinese government has its own demands. foreign ministry officials have been pushing the u.s. to roll back sanctions and trade restrictions. the chinese government says the should stay out of its internal affairs especially regarding hong kong and taiwan. government officials say china will refuse to compromise in safeguarding its core interests. just ahead of this meeting, david, the u.s. greeted the chinese government by sanctioning two dozen officials for the repression ongoing in hong kong. back to you, david.

david: rich edson, thank you very much. what will the chinese want from this meeting? let's ask gary locke. ambassador, thank you for join us. appreciate you coming in. let me start with their business goals because it's kind of hard to separate buzz and political goal -- business and political goals sometimes in dealing with the chinese in particular. they are desperate, as you well know, to get huawei in the united states. they're trying to get huawei in everywhere in the world, but particularly with regard to the 5g picture, having huawei control 5g in the world is one of their long-term goals. i think you might agree. will they push in this meeting for that? >> well, they'll obviously push for companies like huawei, but also to try and make sure that other chinese companies are not somehow forced to be sold off in the united states whether it's tiktok or wechat, things like that. but they're also going to be pushing for the lifting of the tariffs on chinese goods coming

into the united states. they're going to meet a lot of resistance from secretary of state antony blinken and jake sullivan, the national security adviser. the biden administration is going to maintain a tough attitude toward china. obviously, they want to be very, very firm and state their goals, their values to the chinese. it will not come as a surprise to the chinese, but it's important to have these face to face meetings indicate the priorities -- to indicate the priorities, the values of the administration, whether it's democrat or republican. these face to face meetings are very, very important. and also to outline potentially the way in which some of these tensions can be reduced as your reporter anticipated. the united states very much wants china to pressure north korea in terms of its development of nuclear weapons. china has a big interest in making sure that north korea does not develop the nuclear weapon as well.

so this'll be an opportunity to talk about ways in which the two countries can collaborate on issues of mutual concern whether it's stopping terrorism around the world, stopping the proliferation of nuclear weapons, but at the same time being very frank about each other's concerns. david: right. well, one of the things that the last administration was pretty frank about was spying here in the united states. they closed down the consulate in houston which a lot of people said was just known to be a nest of spies, of chinese spies that were operating out of there. it's likely that the chinese are going to try to lift restrictions not onlien on reopening the consulate in houston, but getting more members of the state press which is essentially the propaganda arm of the communist party into the united states, more students, etc. do you think the administration will budge with on those accounts? >> well, i'm sure those will come up. but we also need to understand that some of the policies of the

prior administration have actually hurt americans. i mean, yes, america businesses and governments and policymakers have very deep concerns about the trade and economic policies of china, the lack of strong enforcement of intellectual property. but i believe that most people, including very conservative outlets, would say that the trade war was the wrong tactic, wrong strategy. because, for instance, many of our european a allies wish us well in this fight with china on these trade and economic policies, but by imposing tariffs on chinese goods coming into the united states, the chinese then retaliated and imposed tariffs on american goods going into china -- david: how do you -- forgive me for interrupting -- >> -- defend the europeans is less expensive, and so our european allies who wanted us to prevail in this tug-of-war with china, however, they benefit --

david: ambassador, forgive my interruption, but how do you press your points? we saw a list of very legitimate points of the secretary of9 state, affairs in taiwan, what's happening with the uighurs, very important points, but how do you press that? what is the stick that you use if not tariffs? >> tariffs could have been imposed be by other countries in addition to to the united states. that's my point. david: gotcha. >> united states imposing only tariffs and then having china retaliate against only american goods benefited the italians, the germans, the british, the french, the canadian goods which then hurt our manufacturers even more. i'm not saying that we don't need to -- i'm not saying that we shouldn't attack the policies of china, but we should be doing it with our allies in concert with our allies so it's a united, worldwide front against china. david: well you would.

ambassador gary locke, good to have you in. thank you very much for being here, appreciate it. >> thank you. david: coming up, more americans could get a tax hike under president biden's plan than previously thought. it may affect your bank account. that's next. ♪ we don't have to rush when you're alone with me. ♪ i feel it coming, i feel it coming, babe ♪♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot.

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♪ >> it's a tale of two cities in the market. a big green jump for the dow, up 186 points, but look at the nasdaq down at the bottom of your screen. it's down more than 1%, it's 159 points off to 13,365. and the s&p, which is a broad index,es has 500 stocks, a lot more than what the dow has, the dow 30, that's down as well. there's some big stocks in the dow like boeing that are up, for example, and all of this is kind of secondary, if you can believe it, to what's happening with the 10-year treasury. look at this. the yield is up nine basis points, a big jump in the yield. of course, that many people say is forecasting rising inflation that perhaps, just perhaps, the fed is incapable of dealing

with. joining us now, the cow guy, scott shellady, and fox news contributor phil flynn. gentlemen, great to see you both. you're both well prepared to talk about this. scott, first to you. jerome powell came out yesterday suggesting that, you know, he had things well in hand, that he, you know, the fed was capable of dealing with rising interest rates, thus capable of dealing with inflation. but i'm wondering if the fed is actually helpless to deal with rising interest rates. it seems to have -- the markets have a mind that even the fed can't control. what do you think? >> well, i think that everybody's worried about the pace of rises that we've seen as of late. i think the market's comfortable with that 2% in the 10-year, but not overnight. to a man or woman, the talking heads that everybody's listening to have been talking about this roping trade, we're going to grow 6-12%, right? if okay, fine, i get that. that's nothing to talk about.

what i want to talk about is when we're on the other side of that sugar high and we've spent $6 trillion we don't have, we've got corporate taxes higher, or personal income taxes that are higher, estate taxes that are higher, we might have a wealth tax. talk about a hangover, and then we spent $6 trillion we don't have. that's the key to be talking about here. david: i think you're right. >> and i think the fed's worried about that too. that's why they're going to take the short-term heat. they feel like we've got some stuff to worry about on the other side. david david phil, a lot of so-called progressives want to to to monetize that debt by having the fed print money to buy up all the treasuries that exist. that's not a progressive idea, that's regress i. we have tried that. different governments have tried it for the past hundred years. every time it has a bad ending, no? >> it absolutely does. and i agree with scott, he's absolutely right. these are the worry signs down the road. you know, the problem is the fed isn't acknowledging that. they're saying exactly the opposite.

they say they're encouraging inflation, they're encouraging money printing. now, they might get away with it, they might have gotten away with it if it weren't for these tax policies coming down from the biden administration. david: i just want to get -- >> if you're going to raise taxes, you better -- [inaudible] david: i do want to get a tax question in because both you guys, and you have to respond quickly because biden's proposed tax hike could hit people making $200,000. remember, first it was going to be millionaires, then over $400,000. white house press secretary jen psaki clarifying the tax hike threshold. listen and i'll get your response. >> i was saying that if you're a billionaire, you're going to pay more in taxes than somebody making 425, over 400. i was just -- >> oh, okay. >> sorry, wasn't trying to change the threshold. david david this has to be really short responsings, but how many times, scott, have we heard this before? it affects the average guy. >> actually every time, and this

is no surprise. and if you are surprised, go back and read a history book. the 400,000 threshold, obviously, we've gone way through that. if you spend $6 trillion you don't have, look out, everybody. david: and, phil, these million million -- millionaire taxes, we saw it with the amt, first it's only going to affect 12 people, then it affects millions. [laughter] >> it's called trickle down tax economics, people making less and less money. people like scott shellady do not bet as much on march madness, because -- [laughter] david: i hadn't thought of that. terrific point, phil. scott and phil are coming back, thanks, guys. ohio's attorney general is mad as well x he's here to explain why he is fighting the biden administration's attempt to prevent states from cutting your state taxes. that's next. ♪ ♪ one more time -- ♪

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♪ david: welcome back to "cavuto coast to coast." many states were hoping to cut their state taxes in order to stimulate growth after all their lockdowns, but the u.s. treasury department now says, hold on. states that want to cut taxes are going to have to pay back the federal government for covid relief that they've received in order to do so. this has a number of states crying foul saying the feds are trying to blackmail states with billions in covid aid. blake burman is at the white house with exactly how states are reacting to all this. >> reporter: hi there, david. 21 states attorney generals, all republican, were concerned that language in the $1.9 trillion american rescue plan would actually prevent states from being able to cut taxes should they choose to do so. so those 21 a.g.s wrote a letter earlier this week to the treasury secretary, janet yellen, asking her to clarify

this. a treasury spokesperson sent me the following statement just little while ago, quote: states are free to make policy decisions to cut taxes, they just cannot use the pandemic relief funds to pay for those tax cuts. montana's attorney general was among the signatories on that letter. >> we don't want to grow our government. we're republican controlled, we want to live within our means, and we'd love to provide some tax relief to our taxpayers. i think we can do that very easily here. >> reporter: over here at the white house, they say the money from the plan directed to states in part was to keep essential workers employed and not for tax cuts. but republicans have argued the funds are not needed in many cases and could be used, instead, for example, for tax cuts. senator rick scott is saying some of the money should be sent back to washington. >> my view is any money in excess of what you need to cover covid expenses, send it back. we're all american citizens. don't waste the money. >> reporter: david, several state legislatures are

considering going forward with tax cuts at some point this year. david? david: well, the whole question of i paying for tax cuts is called into question. some people say that's the wrong way of looking at it. thank you very much, blake. ohio's attorney general is now suing the biden administration over its $1.9 trillion coronavirus relief package saying the bill unlawfully restricts the states' ability to cut their own taxes. republican attorney general dave yoest joins me now. general yoest, treasury's using what i consider to be a tired old argument that tax cuts cost when a lot of times it increases economic activity whether it's in the state or the federal government, so much so that end up with more revenue rather than less. is that the argument you're making? >> well, that can happen, and that's a policy argument that ought to belong to the states. states ought to be able to decide what think want to do.

the federal government is trying to dominate this and dictate the outcome of that discussion in every state of the union, and that's unconstitutional. it's a violation of federalism. this is the united states of america, not the people's republic of d.c. david: so you think they're holding the covid aid above your head in kind of a blackmail fashion to force you to do what they think needs to be done at a fiscal level on the state level are. >> that's exactly what's going on here. and, look, the supreme court's already held that that's unconstitutional in the nfib v. sebelius case over obamacare and the medicaid expansion. you'll recall that they said that can't be mandatory, you cannot coerce the states to adopt policies that you want. and this is co, straight and -- coercion straight and simple. david: it's at a question of

mathematics. how are they going to decide how much a tax cut costs? again, i think there's plenty of evidence that tax rates, that's very often bringing in more revenue, or it's an analysis that has to be made beforehand so that if you want to cut taxes by an amount that they say would equal $2 trillion finish or $2 billion, you have to pay that back to them, that's all a guess. nobody knows for sure until the revenue begins to come in, right? >> absolutely. and even looking retrospectively, it's sometimes difficult to come up with a concrete answer because a great deal of modeling's involved, assumptions, what other factors go into that. but there's more important -- not more important, but an equally important issue. this is going to impact every state's economic development and job creation strategies. look, if you're trying to attract a new factory or a new job-creating company to your

state, the way it is in this day and age is you've got to offer some kind of incentives, tax credit, tax a abatements. this bill, which talks about directly or indirectly, those things are going to be off the table. this is just bad policy, and it's unconstitutional. david: well, and the reason it's unconstitutional is because we are a remix, and every -- a republic, and every9 state has different circumstances guiding its own policy. you cannot guide a republic by what happens in the federal government. every state is different. some states may not need tax cuts. other states, i mean, florida and texas have zero income if taxes. other states may decide, gee, we see all the people flooding into florida and texas, maybe we should do what they're doing, but they wouldn't be allowed to under these new rules. >> that's exactly right. and the key is the federal government's not allowed to do this.

they're only given the powers that are enumerated in the constitution, and the tenth amendment says anything that's not enumerated to the federal government belongs to the states or the people. and there's nothing about dictating state the tax policy -- state tax policy in the united states constitution. david: yeah. it looks like a power grab from the federal government, and in a republic that's a very dangerous thing. we wish you success or at least good going in terms of your lawsuit. it's going to be interesting to see how it works out. please come back and tell us, okay? >> i'll look forward to it. david: dave yost, attorney general of ohio. meanwhile, the crypto craze breaking into big banking, find out which bank is the first to offer clients to invest in bitcoin. that's next. ♪ and you're making the typical me break my typical rules -- ♪ it's true, i'm a sucker for

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usaa. what you're made of, we're made for. usaa. ♪ david: the crypto craze hitting a major milestone in terms of a mainstream breakthrough. the bank of new york mellon is investing in crypto start-up and morgan stanley is now the first u.s. major banking institution to offer wealthy clients access to bitcoin funds. back with our panel, scott shellady and phil flynn. phil, i'm interested in knowing what the traders, your buddies in the chicago pits are saying about cryptocurrency. do they think it is a currency, that it sort of burst out of that investment category into a currency category? >> yeah, it's too big to ignore. you know, in fact, the cme group was early on in the bitcoin craze by creating a bitcoin futures contract. and they were one of the first legitimate exchangeses in the world to really get behind this.

you can't ignore the digital dollar. but i do have some concerns about bitcoin in the big picture. it's dirty money, dave, that's the problem. the technology behind bitcoin uses too much energy, and unless they solve that problem, that the currency is going to fail at some point. david: well, and, scott, i think that's, frankly -- of course, central banks don't like competition, there's also that, but they're concerned about money laundering and things like -- is there any way to really stop that from happening? frankly, money laundering happens with real currency, paper currency as well. >> right. it's just an easier form of money laundering. and, you know, all the licenses that myself and phil hold, anti-money laundering's a big part of how we keep those licenses. we're supposed to be on top of that, and this is a place where that's absolutely going to happen. while we're talking about it more and more today here in this country, there are other countries that have got other bans and restrictions like

india, russia, china. so we still have a ways to go here, i think, in the beginning. david: and then, phil, there's the question of whether or not you can use it to pay for things. if i can use the currency to pay for things, i could actually make money as it goes up in value because it takes less bitcoin to pay off my bills and, therefore, i'm actually making money. now, do i, do i count that as an investment gain or, i mean, you know, there are all kinds of questions that need to be answered here. >> yeah, this really is. and, listen, i think this is in its infancy when it comes to regulation, but you can't ignore it. it's coming right now. and i think when you talk about, you know, the technology, you know, is the blockchain that backs up the bitcoin, is that sustainable? full disclosure, i'm invested in a different technology called rate of technology that is much more energy efficient. so it's coming. you can't ignore it, but there's

going to raise a lot of questions as far as access and everything else. david: okay, full disclosure, very quickly, do either of you own cryptocurrency itself, not the platform, but the cryptocurrency, either one of you. >> yes. david: okay. what kind, phil? >> i own cloud coin. that's the one i own. and i've been in the market to buy bitcoin. i'm going to wait for it to pull back. david: all right: and scott says no to all cryptocurrency. >> it's still in the pioneer stage for me. thattived david it is -- david: it is for me as well. thanks, guys, good to see you both. john kerry caught with his mask down. we'll bring you the full story after the break. ♪ sunlight in my face. ♪ i see the dark cloud disappear without a trace ♪♪

♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217 ♪ david: fox biz alert, one of the most controversial nominations for the president's cabinet, javier becerra as hhs secretary, has passed the senate, but it appears to be a purely partisan

vote, 50-49. apparently, one republican senator did not chime in. but every democrat in the senate voted in favor of javier becerra. many people thought that perhaps joe manchin would say no because of the liberal leanings of becerra but, in fact, he said, yes. javier becerra will be, as soon as he's sworn in, the hhs secretary. all right. well, china is a focus in alaska, and in washington today house minority leader ken mccarthy -- kevin mccarthy is calling on democrats to remove eric swalwell from the intel committee over his former ties with an alleged chinese spy. mike emmanuel has the details. >> reporter: good afternoon. the house republican leader offering a resolution against democrat eric swalwell of colorado, it reads: removing a certain member from a certain committee of the house of representatives, whereas representative eric swalwell has

not denied public reporting that a suspected chinese intelligence operative helped raise money for representative swalwell's political campaigns and facilitated potential assignments of interns into representative swalwell's offices, resolve that the the member is hereby removed from the following committee of the house of representatives, permanent select committee on intelligence, mr. swalwell of california. republicans have been concerned about swal we've's ties to an alleged chinese spy named christine fang. she left the country in 2015 of after she had built relationships in california political circles. mccarthy addressed the matter a short time ago. >> if you cannot get a security clearance in the private sector, you should not be a appointed to the intel committee. eric swalwell, based upon everything in public that you know, cannot get a security clearance in the private sector. but only in congress would he get appointed to learn all the secrets of america. >> reporter: swalwell

responded on twitter writing: meet the new mccarthyism. swalwell has not denied, it fails to include multiple fbi statements of no wrongdoing and did nothing but cooperate. all this deflects from gop leader's support of qanon. it's expected the democrats have the votes to reject it, but it does force democrats to be on the record defending swalwell. david? david: that charge of mccarthyism and then bringing up qanon at the end of his attack on are republicans. all right. thank you very much, mike. meanwhile, john kerry caught maskless. a passenger snapping a picture of the climate czar not wearing a mask on a private flight from boston to d.c. even though it is required by american airlines. republican senator tom cotton saying this is just the latest example of kerry saying one thing and doing the opposite. listen. >> john kerry has a long record of imposing one set of rules on americans and not following

those rules as evidenced by his jet setting around the world to try to save it from climate change when he's burning more carbon than one person does in an entire year. david: kerry tweeting out, quote: feels like there's some st. patrick's day ma larry afoot on twitter. let's be clear, if i drop my mask to one ear on a flight, it was momentary. i wear my mask because it saves lives and stops the spread. it's what the science tells us to do. of course, unless you're john kerry. here now washington times opinion editor charles hurt. charlie, you can't parody this stuff, you can't make it up. it's like "saturday night live" has become the regular daily news broadcast, right? [laughter] >> sadly, yes, that is true. and i also love how in his twitter, his malarkey twitter feed line, whatever, he says if i drop my mask. look at the picture. you dropped your mask to one ear. so i guess he's also a conspiracy theorist.

but here's the thing, you know, americans are, if not else -- and it all stems from our belief in equal justice under law -- americans believe in fairness. they think everybody should, the rules should apply to everybody equally whether it's an actual federal law or it's a rule on an airline. and people have been, whether john kerry likes it or not or knows it or not, people have been banned from flights, from flying, some potentially for life, people have been thrown off of flights because of exactly that -- david: well, and, charlie -- >> something like this -- david: i'm sorry to interrupt, but i just wanted to show, we have a specific example that was caught on tape of what happens to an average american, not one of the political elite who goes into a private space without a mask. there was this woman in texas who went into a bank, i think we can show the video of it for those who haven't seen. there she is on the left. of she's 65 years old, by the way, and she was in a state that has removed the mask mandate. she was in a private space like

john kerry was on american airlines. she was wrestled to the ground and handcuffed. that's what happens. that didn't happen to john kerry and the american airlines flight. they didn't land the plane so that he would be forced to get off in handcuffs the way it would happen to this woman had she tried to do the same thing. so it is just the arrogance of the political elite that is so frustrating. >> yeah. and, you know, the thing about it is, you know, it's a pandemic. it is a hard time for everybody. there is not a soul in america who has not had to go through enormous hardships. and, obviously, many people have gone through harder hardships than others. but it's a time when everybody, whether it's the cop cops enforcing rules in a bank in texas or airline people or, you know, the president of the united states. everybody has to have extra forbearance and sort of -- you try to deescalate these situations, and you try to be

very respectful of other people. and that's what i see every day. and i would like to see a little bit more of that from our public leaders. david: well, at least you have to adhere to your own dictates. it's bad enough that we're treated like we're not represented in government, but we have commissars telling us what to do, but then they go ahead and do something against dictates. like gavin newsom, for example, eating at the fancy restaurant, or recently there was a zoom school parent in a recent interview, even though his kids reportedly returned to their private school classes months ago, he was talking about the fact that he was a zoom parent. total lie. wasn't -- apparently, wasn't true. his kids are in private school, and they've been going to in-person classroom teaching for a while now. >> it's amazing what a little bit of common sense and decency, the kind of common sense and decency that you see every day in regular america, people, you

know, interacting in small towns across america. it's amazing how far that can go to solving problems in washington, in our political sphere seem intractable and impossible to solve. a little common sense, a little decency. david: yeah. it seems like we are close to a tea a party moment in this country where the -- tea party moment in this country where the public is fighting back. they've had it up to here, they're mad as hell, and they're not going to take it anymore. it's about time. charlie hurt, always a pleasure to see you, my friend. thank you very much, appreciate it. well, robinhood looking to get a slice of your stimulus check. what the company is offering right after a short break. ♪ ♪

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into one low monthly payment. they make you feel like it's an honor for them to help you out. i went from sleepless nights to getting my money right. so thank you. ♪ ♪♪ david: welcome back to "cavuto coast to coast." i'm davids asman in for neil cavuto. the money is here, tens of millions of stimulus checks starting to hit the pockets of americans, and some of that money might be going right into the stock market. let's go to fox business' susan l are i with the latest and, super, some of it very speck la tiffly into the market, right? susan: yeah. we're talking about 90 million americans who have gotten their $1400 checks already in direct deposits by wednesday, and we know that a lot of that money

will be spent and, yes, investedmented. deutsche bank says over a third of that money will go into investing, but you have to wonder exactly where in the market it'll go. $40 billion of $380 billion, roughly 10% or so, will be put into the stock market and also cryptocurrencies. $40 billion is a lot of money. in fact, this is really surprising, a majority of that $40 billion, around 60% or so, will be invested in bitcoin itself. 60%, that's more than what's going up and going into the stock market, and that could drive up the value of bitcoin as much as 2-3%. and, of course, we know that trendy stocks like tesla, gamestop, amc and the reddit brigade, they usually get a lift when there's more stimulus money around and when investors get their checks. who exactly is investing? research shows that millennials, on you gen-z investors are making up a sizable portion of retail traders these days, and they've become a sheer force

when it comes to the stock market accounting for roughly 20% of trade flows and volumes at ubs. as a whole for retail trading, credit suisse says now they account for 30% of daily volume. that's a lot. also retail investing app robinhood, obvious, offering traders up to 5% for cash bonuses for new deposits just in time for the arrival of those stimulus checks. david, i think the question is would you spend your money on robinhood after what happened during the height of the gamestop saga at the end of january? david: no, no. but i'm not dave portnoy. that's where the similarities end, first name, as far as our investment strategies. i'm closer to the retirement than dave portnoy is. let him do that kind of investing. how about you? susan: well, not in robinhood because i think we've all learned our lessons. [laughter] and they're better, obviously, applications out there. i would say roughly a lot of that stimulus money will go into

the stock market. david: that cryptocurrency figure is extraordinary, 60%. thank you very much, susan. tech stocks have been plummeting. joining us now i is fox news contributor liz peek and jared levy. good to see you both. liz, i get a sense that the market is beginning to price in some of what's going to be happening on the fiscal front; that is, taxes going up, etc. do you get that sense as well? >> well, look, david, i think you're right. i mean, let's look at the tech stocks. they were up 45% last year, 35% roughly the year before. people had huge gains in these stocks, and they're beginning to wonder if they could take advantage of currently low capital gains rates and maybe take some money off the table or move that money into companies and industries which are now

really much on the forefront of reviving thanks to covid receding. i mean, we've got airlines and restaurant chains and hotels and all kinds of businesses that have been flat on their backs over the past year, and those companies are doing pretty well in the market. but i think this natural rotation follows, yes, higher interest rates, the implications in pe ratios have to come down. but also just exactly what you're saying, people are beginning to worry about capital gains rates going up. david: yeah. and not only fiscal in terms of taxes, but fiscal in terms of spending and how that's going to affect inflation and what happens to interest rates. jared, i want to ask you about what susan was talking about, the fact that a lot of people receiving these checks from the covid relief bill, 60% by some estimates, going into bitcoin? is that healthy for the economy? [laughter] >> i, you know, i was actually a little stunned to read that, but it kind of plays into, you know,

again, the type of mindset we're in right now. it also says one really important thing, we're good with risk right now, david. there's two stories playing out right now and, yeah, the bottom line is i actually do think it's a good thing. i think people are going to play around a little bit. there's a short and a long-term story when it comes to tech. the short-term story, yeah, a little bit of selling and reaction to interest rates, but the reality is, david, if you've got a good tech company, right? the story's there, everything's there, the growth potential's there, does a change in the 10-year yield of, you know, a quarter a percent really make a difference in that company's, you know, future? david: right. >> and long term it does, but in the short term i think it's a knee-jerk reaction. a lot of these tech companies that have good stories still are good stories, and i'm buying some of them right here. deaf david okay. i tell -- david: i tell you, a 9 basis point increase in rates in one

day is -- you can't look cross-eyed at it, you have to deal with it straight on. i just want to switch to another subject. the treasury department big9 footing states that want to cut their own taxes saying that states that cut their own tax rates will have to pay a huge fee to, quote, pay for the money they're getting from the feds. i raised the issue with the ohio attorney general, dave yost, last hour. >> policy arguments that ought to belong to the states. states ought to be able to decide what they want to do. the federal government is trying to dominate this and dictate the outcome of that discussion in every state of the union, and that's unconstitutional. finish it's a violation of federalism. this is the united states of america not the people's republic of d.c. david: so, liz, there are two parts to this. one, it is a dictate from the federal government, the federal government telling states what they can and cannot do, essentially using blackmail from

the covid relief bill to do it with regard to their state a taxes. but the other point is, is that yellen -- who, frankly, i think, should know better because she's seen the same statsment sometimes when you lower tax rates, you increase economic activity, and a lot of these states could use that. and that leads to more revenue, not less revenue. so the whole idea that you have to pay for tax rate cuts may be wrong. >> david, i'm really horrified by a lot of the things that the democrats wanted to do that are really unsettling to sort of the basic structure of our government and our country. but one of them is an attack on federalism. and this her -- issue of them telling states what they can and cannot do with fiscal policy is absurd. by the way, they're also doing it with federal voting laws which, again, i think is unconstitutional from what i read, and also labor laws. imagine the federal government saying to the state that you can't be a right to work state.

i think these blue state governors are so behind the 8-ball, they've done so poorly in managing their states that they are now trying to make sure the red states don't overtake them. and guess what? they're losing that battle. david: yeah. well, jared, sticking on the tax cut thing, you know, everybody said the trump tax cuts were going to cost a fortune, gonna cost trillions of dollars. in fact, in 209 -- i think -- 2019, i i think we can put up that chart that we had, in 2019 the cbo, congressional budget office -- not the trump administration itself -- came out with figures showing that tax receipts after the tax cuts increased 4%. so we actually had an increase in tax receipts after we lowered the tax rates across the board. >> yeah. if you, if you look, david, at states that have lower or minimal or no tax rates like my great state of texas i live in now, we have activity.

you look at states like california, look at states like pennsylvania, like new york that, again, democratic-led, heavily tax thed. look at their activity except in times of downturn. so again, it kind of goes against the line of thinking, right? consumers, listen, we came to america to be free. we have a certain, you know, way that we look at the world. and if we feel burdened by a state the or a federal government, you feel cagey. you're not going to spend. so, again, the data's there that shows it. i'm very uncomfortable with the fact that the federal government is trying to impose, it is a seasons of blackmail on states that are trying to get themselves out of holes and trying to propel themselves into a better financial, fiscal future. look at california, perfect example. very high taxes, and they're always going back to the federal piggybank, please help us, please help us, please help us, and people are exiting the state. david: we are a republic, and we learn from what each individual state does with its own finances. if it's dictated from inside the

beltway, we're no longer a republic. it's that simple. liz and jared, thank you very much. well, all eyes are on alaska right now as senior u.s. and chinese officials get ready to meet for the first time under president biden. no publication follows china more closely than the south china morning post and its u.s. bureau chief, robert delaney, joins me now. robert, great to see you. thank you for coming in. you know, the chinese are expert at following the political psychology, if you will, of what happens in the united states. they must see that this new administration is trying to undo practically everything that the trump administration did with regard to immigration, with regard to tax policy, etc. are they feeling the same about the china, what happens in our relations with china? are they playing on that? will they to so today in alaska to try to get what they want from the u.s. delegation? >> well, i think what they're seeing is that while biden,

while the biden administration might be trying to undo many of former president trump's policies, on the china front there's no change. the biden administration has been every bit as aggressive as the trump administration was. in fact, we even saw earlier this week, excuse me, we saw additional sanctions that the state department announced on chinese officials with regard to what the chinese government is doing in hong kong. so i think the chinese government sees that the, that while many things about the biden administration differs from the trump administration, the biden administration is carrying on these aggressive policies. so that would explain -- david: that's very interesting. >> yes. why they're happy to, why they're willing to come to the u.s. for talks. david: well, what about a specific issue, huawei, which the trump administration made

very clear huawei, tiktok and a couple of other companies but particularly huawei because they have such power with regard to the 5g transformation of the world, are the chinese thinking that maybe they can change u.s. policy in that regard in terms of the way huawei is received in the united states? >> there's no indication at this point that the biden administration wants to ease up with respect to huawei. in fact, the entire approach that the administration's taking towards chinese companies that are in the telecommunications or information technology space has, is, in fact, marching forward. just yesterday we saw that the commerce department had sent out subpoenas to an unspecified number of chinese companies in this space just to determine whether or not they're national security threats, to get more information about this. they didn't name the companies.

i would fully expect that huawei would be among them. in addition to other -- sorry, at the same time the sec ruled that they are not going to allow companies like unicom, their u.s. unit, to continue offering services in the u.s. david: how about security issues like, for example, the houston consulate which was a ebb depp of thieves, z -- a den of thieves, as i mentioned before, at least a den of spies, and it was shut down by the trump administration. i'm sure they'd love to get that back open again, or the confucius institutes or the so-called journalists that work for state-run media in china, getting they can back to the u.s. are they going to try to pressure the u.s. in any way on that front? >> i think that might be the one area where we might see some agreement. i mean, you have you have to consider that these talks that are about to take place in

anchorage, first of all, they've already said there will be no joint statement. that says a lot about the degree to which they'll come to con consensus. but there are some areas where there might be some progress and, yes, the consulates might be on the table. it's possible that, of course, the trump administration shut down the houston consulate. china followed by shutting down america's chung du consulate. so perhaps they could find a way forward by agreeing to open them. there are other areas, obviously, climate change is a big issue on the table, north korea is another issue that's potentially on the table. so there are some areas. but no one is expecting any progress in terms of, let's say, punitive trade tariffs, any pulling back at all on the part of washington and other issues. david: robert delaney, good to see you. thank you very much for coming

in, appreciate it. coming up, the white house throwing more money at schools to open even though officials say it is safe to go back in right now without all that money. we'll dig into the plans coming up. ♪ get ready, baby, 'cuz here i am. ♪ get ready 'cuz here i come. ♪ get ready 'cuz here i come ♪♪

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♪♪ >> we're fighting for our rights to go back to and a school because science says that it's safe, and the utla won't let are us. >> i miss that i don't get to learn as much because at home there are more distractions than at school. david: whoever thought, kids demanding to go back to school. [laughter] as students push to get back to class, the white house claims that they are pushing forward with their efforts to reopen schools in the spring. david lee miller is live in new york city with the latest. david, we're only a couple of weeks away from the spring. >> reporter: indeed, we are, david. the binden administration says it is going to -- biden administration is going to pledge $10 billion of the $1.9 trillion stimulus aid to be used

for schools to screen for covid. now, that money is specifically going to be spent testing not only students, but teachers and staff, local and state health departments should start receiving this $10 billion by early next month. the head of the american federation of teachers says although testing is crucial for getting kids back in the classroom, many school districts simply do not have the financial resources for a testing program. the department of health and human services says testing is critical to saving lives and restoring economic opportunity. meanwhile, a recent study shows that reopening of schools does not meaningfully contribute to community transmission of covid. the biden administrations has made it a priority to get kids from kindergarten through the eighth grade back into the classroom, and the cdc is considering changing the social distancing requirements in schools from 6 to 3 feet. federal officials tell fox that that change based on current safety data could be announced as soon as tomorrow. and next wednesday the

department of education going to hold what it is billing as a virtual national safe school reopening summit. one of the goals according to the secretary of education is sharing information that will allow for in-person learning. >> so we know students learn best from students, teachers learn best from teachers, and states will learn best from states on how to safely reopen schools quickly. i'm really excited that dr. jill biden will be offering opening remarks. >> reporter: and according to the secretary, he said that mandatory testing of teachers is not going to be a requirement to reopen classrooms, but it was underscored it should be a priority. and across the country there has been, as you've mentioned at the beginning of this piece, a growing pressure to reopen schools. and joining that chorus, david, now the governor of new jersey who says it is now the time to get kids back into the classroom. david? david e david some people would say way past time.

david lee miller in washington. is so we paid -- we've had three covid bills, ladies and gentlemen, and k-12 spending in those three bills has come in at $193 billion. that's three times the full department of education budget. three times. and we still don't have kids in school because the teachers unions say the classrooms aren't ready. so where has that money been going? we're going to be asking republican congressman dan meuser right after a break. ♪ ♪ come on, come on...yes! hey ava, how's my bracket looking? um, i'm trying to find a nicer word for dumpster fire. um, you're not ava. yeah, this is gary, i invested in invesco qqq. a fund that invests in the innovations of the nasdaq-100. like this artificially intelligent home system. you don't have to be an ai voice architect to help dictate the future. any other questions?

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david: so the biden administration says they're working towards getting students back into the classroom. now allocating $10 billion more of the american rescue plan towards covid testing, but our next guest says democrats denied his request to immediately

consider the reopen schools act. pennsylvania congressman dan meuser joins us now on what's really going on in d.c.. congressman, i defy anybody to tell us what's really going on, but let's just talk about money for a second here because we've a had three covid relief bills that have allocated a lot of money to schools. the total of those three bills including the last one that was just done is $193 billion for just the k-12 schools. that is three times the budget of the department of education. and they're still not ready? i mean, this is, this is an enormous -- we have never spent anywhere near this amount of money for education in the country, and yet the kids aren't in school. what are they -- where's that money been going? >> well, i will tell you the bill that we passed in december as well included $70 billion which, as you stated, is equivalent to the entirety, more than is the entirety of a year's

worth of department of education funding x. as you just is stated, over $150 billion for the, in the recent bill. the money is there. you know, many mistakes were made during the course of this pandemic. but the idea is to learn from the mistakes quickly and respond. ironically, our schools are where the learning is not taking place. very sadly almost 50%, 45% of the public schools in pennsylvania remain fully remote. yet the private schools, over 90%, are in-person. we have a problem here. people need to address it, and we need to fix it. it's not a state-by-state thing either. rhode island, rhode island has been open since the fall. a blue state, if you will. texas and florida are are in, are in just as good of shape. they've been open since the fall. yet in my district, i have some districts -- one adjacent to the other in a relatively suburban,

rural area -- one district has been fully in-person since the beginning of the year, the other one there's been barely two or three days in person. david: yeah. well, what's happened is we have a breakdown of our funding system of schools in the united states. if three times the budget of the department of ed, almost $200 billion, is not enough to open the schools, we'll never have enough. and where is that money going? you know, there's a lot of suspicion that it is, a large part is a payoff to the teachers union was the teachers union is so generous, they give that money back in political cricks to democrats, and that's why all this money has been going to department of education. so, you know, where finish can you explain to us how we would spend $200 billion to schools that are not open and where is that money going specifically? if. >> yeah, no requirements in the current bill for the schools to be open yet receive all of this funding. we are so grateful -- i'm a

father. many people have children, of course, in schools, and we are so grateful for the teachers, well over 50%, and school districts that are open and teaching and working hard in very, very difficult circumstances. but when you have 45% or less that are not, that is where the troubling part is. and the funding is there. we have to be smarter. we have to lean forward. we've got to do this. the trouble that is being caused these children, that 45% is being left behind. we have to recognize this is a crisis, it needs to be dealt with asap. david: so-called virtual learning does not work. i was a schoolteacher in chicago. we tried that kind of teaching, and it didn't work back then, it doesn't work now. but charter schools, just as one example of schools a that have been open, cost half as much to educate a kid per year as regular public schools, but they're non-union. that's why people don't want the

charter schools to have any kind of competition with the public schools, because they'd win flat out. one, they're open and, two, they cost half as much to educate kids. don't parents deserve and taxpayers deserve to be able to choose between the schools they like expect schools they don't? >> they sure do, and we owe it to our children -- of course the parents matter, the taxpayers matter, but our next generations matter and our future generations. and, yes, this is certainly showing that the idea and concept of school choice is something that's very important. david: absolutely. >> and will be more so moving forward. david: maybe that's one good thing that will come out of all this, is that we will realize that school choice is vital to the future of our country and is necessary for responsibility in terms of the money we're spending for education. congressman meuser, we appreciate you coming in. meanwhile, there are now three investigations into the sexual assault allegations against new york governor andrew

cuomo. this as one of the accusers is pushing back against the state's impeachment probe. bryan llenas has the latest from brooklyn. bryan. >> reporter: david, good afternoon. let's run down through those three investigations into governor cuomo's sexual harassment allegations. there is the state assembly impeachment investigation, there is the attorney general's independent investigation, and now cuomo's office is conducting a review into the allegations. and there are concerns really with the latter two issues. the first one is democratic state assembly speaker carl hasty hired davis, poke and lordwell -- polk and lordwell to lead the investigation, and it turns out the firm had ties to the cuomo administration, and new york 1 is reporting that hasty selected this firm on his own and, by the way, notably, he is not demanding cuomo's investigation. lindsey boylan, who was the first to accuse cuomo publicly,

says she will not cooperate with the assembly's impeachment organization. she's saying do not trust carl hasty, his impeachment investigation is not designed to be transparent or to move fast,ing and there's nothing cuomo wants more than time. this as the cuomo administration is conducting its own investigation into claims the governor groped an employee if, and the "wall street journal" reports that cuomo's office has hired outside lawyers to represent employees in his executive chamber. and deborah katz, who is an attorney for cuomo accuser and former aide charlotte bennett, she is criticizing these moves writing: at best, these actions will have a chilling effect on potential witnesses or accusers who want to come forward without fear of retaliation. at worst, a deliberate attempt to interfere with the attorney general's investigation. cuomo's office says they fully informed the attorney general's office of their review of, you know, of their own office review, but you can see that there are some questions here from the accusers and concerns.

david: one thing there's no question about is andrew cuomo's a politically well-connected individual. has been all his life. bryan llenas, thank you very much. former dhs official ken cucinelli blasting the white house over reports of restricting media access at the border. >> if you were back at homeland security and the president of the united states called and said can you get some members of the press to accompany border patrol on some of these missions, could you possibly say no? >> that -- no, not really unless there was some operational reason to do so. i mean, this is consistent with -- jen psaki is, i mean, i hate to say it about her, but she's just lying from the podium in the white house. david: this as texas governor greg abbott is now directing more staffing and resources to the border. casey stegall has the very latest from mission, texas. casey. >> reporter: hey, david, good to see you. we can also sort of dovetail off

of that and tell you our own experiences on the ground here. and it has been difficult to track down certain information, in particular the most recent numbers when it comes to the total number of unaccompanied minors that are currently in custody by the federal government. we know that this is a fluid situation. we're putting these requests in every day, but it has been a challenge reporting from the front lines. it's either no comment from some of of our sources and staff within customs and border protection and federal law enforcement, or we're referred to web site which has dated information on it. the reason for all of this unknown, of course, there's the speculation. however, local and state leaders are sure eager to talk like this texas mayor. listen. >> the shelters that operate here day in and day out, year in, year out are full, and we also have seeing and being told

by the border patrol that they're going to be releasing as many as 400 families into our communities perhaps each day. >> reporter: meantime, the first wave of buses filled with at least 200 migrant teen boys arrived at the dallas convention center site which is designed to house up to 3,000 while other locations reportedly bursting at the seams. we're told that the additional federal sites are being examined such as military installations possibly to open additional facilities for the overflow. david? david: well,, keep at it, casey, you're doing great reporting. we do need some cooperation -- >> reporter: thank you, sir. david: thank you very much for your reports. after the break, why goldman sachs' ceo david solomon seems to be softening his stance on getting employees back to the office. ♪ ♪

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♪ david: plotting a path back to the office, charlie gasparino getting new insight at how goldman sachs is looking to get employees back into the office or how soon they will be back in the office. charlie joins us now with the details. charlie, the ceo before had said, you know, we're going to come back soon, this is an aberration. but maybe he's changing his views a little, huh? >> yeah. i mean, i think he rubbed a lot of employees the wrong way. david solomon is all over the news lately are, the ceo of goldman sachs, you know, that he's gruff, that he's demanding, that people have to work long hours. for some reason when i was covering wall street and working as long as some of these kids working now, no one complained. they just wanted a shot at the

prize which, to be honest with you, it's becoming a partner and making a lot of money. so anybody would do that. but, again, we have a different generation now, and it's starting to show at goldman. so when he announces -- announced that he wanted to bring back people sooner rather than later, the impression was this summer goldman sachs would have much of its 38,000 work force back at the office particularly in new york city which each as the pandemic recedes, it's still here, it caused a stir inside the firm. marley as we were hearing that -- particularly as we were hearing that he was using his corporate jet, a really interesting story, how he would work from his mansion in the bahamas using the corporate jet. what we understand now is that solomon is dialing back some of this stuff, and at least this timetable that looked like to be the summer everybody in. and lydia moynihan, my producer, has done really good reporting on this, and she's found the following: that, essentially, they're walking it back, they're talking to consultants now about the best way to bring people

back in, integrate some at-home working with some office working. a lot of employees like working from home because they're near their families, and they believe they can be, they can be very productive working at least some days at home while going into the office others, and that's a commute which they'd like to avoid sometimes. so they're talking to consultants, and they also took an employee survey to figure out next steps, and that should be interesting. so they are, they are walking back some of mr. solomon's more aggressive comments. they still tell me over there that he's a big believer in office, being in the office at least much of the time. you just can't replicate the productivity at home. we shall see -- david: he's not the only one, jamie dimon has sellerly said -- essentially said the same thing. they're dealing with millennials now -- [laughter]

who are not as hard-nosed about these things as the old-timers are. >> yeah. i think the other thing is though i think there is a reck nation broadly, just taken away from this story, that you can save money as a company -- david: that's true. >> -- lower real estate costs, a lot less traveling by integrating the sort of experience of work from home, remote work with the office work. and i think that's going to have a, i mean, that's a whole other story the, david. that's going to be a huge issue for new york city and commercial real estate. but i think that's, there's also part of that is being looked at by goldman sachs and all the firms. so a good story by lydia. it's on fox business. david: i don't think we'll ever get back to normal, it's just that simple. this has changed everything, this pandemic. charlie, thank you very much. coming up, how the cryptocraze could lead to massive confusion when it comes to reporting americans' annual incomes. we'll explain after this. ♪ -- one of a kind.

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david: legalized not pushback in the gn state, critics are now warning of an adverse domino effect after new jersey opened the doors for legal recreational

marijuana sales. to fox business' lydia hu on why some say the lows outweigh the highs of all this -- [laughter] forgive the pun, lydia. >> reporter: the puns are okay, david. hi there. new jersey is the 14th state in the country to legalize recreational marijuana, and there's a growing trend that we're seeing across the country. but the law's provisions about minors using pot, well, that is catching criticism. reck raying -- recreational use is legalized for 21 or older like alcohol, but under this new law police who catch. minors with marijuana or alcohol are prohibited from notifying parents if it's a first offense. state lawmakers had drafted legislation to reverse this, allowing cops the notify parents. jon bramnick is the assembly's minority leader, and in a statement to fox business he calls the original law the dumbest piece of legislation in the history of trenton.

governor phil murphy has said he would support this new measure to notify parents. now, while lawmakers work to reverse course on provisions of that law relating to minors using pot, other critics of the policy say that this new policy will just make the substance more widely available to minors. listen to this. >> listen, it's still illegal for kids under 21, but they're getting it at much higher rates because it's just so normalized. and drug dealers are thriving. the black market, the underground market for marijuana hasn't just withered away in states like california or colorado that have legalized marijuana. >> >> reporter: now, regulations controlling the sale of legalized recreational marijuana in the state of new jersey, those are still forthcoming. there are about 100 centers in the state that already sell medical marijuana, and some are expected to expand into the recreational market as well.

but the first recreational sale is not expected to happen for about six months. mean while, the tax foundation is expecting it'll generate around $180 million a year for the state, really just a small drop in the budget when you expect the annual budget for the skate is around $40 billion. david: wow. lydia hu, thank you very much, i appreciate it. from taxes on marijuana to taxes on cryptocurrency, while americans now have until may 17th to file their taxes, there are new questions over how cryptocurrency investments are taxed and whether that income could be underreported. let's bring in america's accountant, cpa dan geltrude for more on this. dan, thank you very much. you know, one of the ways in which clip to can to currency -- cryptocurrency came about was as a way of kind of disguising transactions. i mean, let's be honest about it, it has a certain cover because it's all done

electronically. that appealed to many people for many different reasons. some legitimate, some perhaps illegitimate. so that's one of the reasons that the tax man is going to have so much trouble with this, right? >> yeah. there's a lot of issues related to cryptocurrency. so to start with, as you just said, it's the new underground economiment it was kind of like what -- economy. it was kind of like what used the happen with cash and paying things under the table. what's different here, david, and what creates so much confusion is every time you use, let's say, bitcoin you're actually potentially triggering a taxable transaction. because when you use that bitcoin if you're getting value -- david: yes. >> -- greater than what you pay concern. david: bingo. >> -- what the basis was, it's like a stock. you have a gain and it's tack taxable, so it's got to be reported. david: you hit upon exactly the

point that i think most people are missing. it's not so much -- okay, if you hold it and wait for it to go up and then sell it, then it's obviously an investment and something has to be taxed as a capital gain. but if you use it and more and more companies are allowing you to use cryptocurrencies to pay your bills, and if it goes way up in value, that means that you're actually getting a gain. you're getting what could be considered a capital gain, and do you then have to report it as such to the tax man? >> yes, you do. david: wow. >> and the irs is hot on this issue, david. the fraud enforcement office of the irs has started what's called operation hidden treasure. and what they're looking for is these transactions of unreported income. and just to make sure that people can't plead ignorance on this, right on the new 1040s for 2020, right after where your

name and address is, there is a question related to do you have cryptocurrencies, were you transacting in clip to currencies -- david: incredible. >> -- yes or no. and then you sign that return under the penalties of perjury. david: wow. wow. >> so it's right out there. david: so you could go to jail if you answer that wrong. let me just ask specifically what happens if i get paid in cryptocurrency and, of course, the value of it fluctuates related to the dollar? >> well, as you get paid, whatever product you sold for that amount, that is now your basis in that cryptocurrency. to answer your first question, when you got hate, it's no different -- paid, it's no different than getting paid by credit card or cash, so whatever profit you had in the transaction, you pay there. now you've received the bitcoin. now you have to track what your basis is as of that transaction

because when you go to use the cryptocurrency, you are creating potentially another taxable event. it's going to be nuts. david: wow. well, there's very -- by the way, we don't have more than 15 seconds, but very rare that the irs gives us a break, gives the actual taxpayer a break, but we did just get a break last night. we heard that may 17th is now the deadline for filling out our tax forms. that's a pretty good deal, right? we get an extra month. >> you get an extra month. but let's look at it this way, the irs right now is overwhelmed, so they need the extra time. keep in mind last year irs paid to taxpayers $3 billion worth of interest because they were late in delivering refunds back to taxpayers. david: interesting. they had their own reasons for doing it. dan geltrude, thank you very much, appreciate it. well, mortgage rates being

propelled by higher bond yields. the 30-year fixed rising to 3.09% this year. more "cavuto coast to coast" right after this. ♪♪ that tonight i'm loving you. ♪ oh, you know that tonight the i'm loving

>> we got an interesting question and answer from john saki about when the president instituted the text changes, she was asked does he intend a way economy is out of the recession and she said well he talked about it on the campaign trail and reiterated as you noted earlier this week, so looks like that taxes will be coming sooner rather than later. charles, was not too pleased to hear that news. >> no absolutely not and much more difficult than they think it will be david. david: i think you're right. >> think so much and good afternoon everyone and this is making money and breaking at this moment wall street is digesting comments and questions around jerome powell. but what else could that that offer. meanwhile stock investors continue to lease the big growth names without reopening trade and chasing the performance. that continues to be the cake characteristics of us valley. the manufacturing