let's get some answers from cnbc contributor ron insana and cnbc's eric chimney who is in upstate new york where people are lined up to try and file these things early. ron, let me start with you. let me start with the basics here. what is this federal deduction that homeowners are trying to take advantage of before it gets scaled back? >> as of next year, you can no longer deduct all of your state and local income taxes and your property taxes combined. you can only deduct a total of $10,000. so if you live in a high tax state where your income taxes, your local taxes and your property taxes exceed $10,000, you'll only be able to deduct that latter amount. so some people are trying to front load those payments in order to claim the deduction for this year. something that's been call noodle question the last 24 hours by the irs. >> so we're now hearing that some of these homeowners who are trying to prepare their 2018 property tax, it may not be tax deductible after all. why would that be? >> the irs said you need to have your house either assess order reassessed this year and then pa

joining me, ron insana, an old friend of are mine with whom i had this conversation earlier today. so much fun i wanted to have it again. ron, what am i missing? what is it that is intrinsically value about about bitcoin causing someone to invest in it? >> the proponents, enthusiasts, real diehard bitcoin traders and investors suggest this is going to be a knew currency that may well supplant the currency as it is now. because of block chain technology it will create an entirely new architecture, financial, for the world making other currencies obsolete and bitcoin, because it's not run by a government, extremely attractive, because of so many uses and the way it's created will not be controlled by, as they deem it, irresponsible central bankers over time. >> okay. give me a quick lesson into why bitcoin is not like the u.s. dollar? there are some who say no in -- inherently nothing underlying, underpinning the u.s. dollar because it's not tied to gold anymore, but we believe in the value of a dollar for a lot of reasons. not having to do with gold. >> correct. three properties, ali

thank you very much, ylan mui for us in washington >>> let's continue on tax reform and bring in ron insana morning to you. >> good morning. >> the market this week celebrated the hopes of tax reform this setback yesterday playing out in futures, but the pull back small relative to the gains of the prior two days. the market is taking it as a hiccup is that a fair generalization? >> it depends. the parliamentarian is stick on these rules about using budget reconciliation to pass tax reform if there are areas in there that do not allow republicans to pass it with 50, 51 votes and they need 60, they are sunk not a single democrat will vote for this it's an open question as to whether this is a hiccup or a snag and if they have to go back to the drawing board and rewrite large pieces of this to comply with rules >> let's say the corporate tax rate does take the stair step move, are we derailed? >> the average corporation is paying 22% now, you start to wonder what's the point? will you be status quo and is it going to be stimulative? will it be helpful to corporate profits? will it extend the

joining me now is ron insana, cnbc contributor, and ron, good morning. >> good morning. >> how significant is this gesture? >> well, i think if this were to spread wildly and like wildfire, if you will, across corporate america it would be significant insofar as the capital spending that a lot of companies are announcing new investment in plant and equipment for which there is a large tax break, dara. that could be important. i was talking to my colleague melissa lee the other day. every $1,000 spent creates -- i'm sorry, every billion dollars spent creates 7,000 jobs when you're talking about new plant and equipment investment. so if a lot of companies take advantage of this tax break for investment, particularly in the coming year, it could have an impact on jobs. >> and do you think there's a reason to believe that a lot of companies will take advantage of this? >> yeah, it's a big write-down. you're able to write off the whole capital investment in the first year. so that is effectively going to reduce your tax bill, your effective tax rate will fall below the 21% marginal rate where w

so far is that the white house was okay with that change >> thank you very much let's bring in ron insanaeat to see you when you talk about those kinds of details, 20% corporate tax rate versus 21%, does that make a huge impact on the companies of this nation >> i don't think so. that's the marginal rate and the effective rate will still be lower than 21% the average american corporation pays between 18.5% and 22.5% tax rate so 21% is good for companies that have a marginal value at 35%. >> does the slim margin for republicans have an impact on the tax debate >> they are supposed to finish this thing and have this on the president's desk before christmas, before they go on rece recess that would be before doug jones is sworn in as a senator >> chuck schumer was asked about it, whether they would try to stall the budget reconciliation. he said let's see. >> it's hard since it is going through the budget reconciliation process, which just requires the republicans to pass it. it's doubtful that they'll be able to stall that much. >> switching to the fed. everyone is expecting a 25 basis poin

turn to increase can revenue perhaps could be used to pay for other provisions >> let's bring in ron insana with us as well as part of this conversation many toomey speaks out to my recollection the first time we've heard from a senator and one on the finance committee speak out against something that suddenly has become so controversial, what our own larry kudlow said was the dumbest thing i've ever seen. >> the said and local income tax elimination i think is dumber than this and it does disadvantage individual investors who won't be necessarily able to arrange how they take capital gains and offset lossers and also it may be forces people into mutual funds. -month managers will be able to continue to sell what they want when they want and they want to make changes. >> nice to have a big lobe and they were lobbed into this as well until they get themselves removed from it. >> they were facing the same thing. so many things that i think disadvantage individuals in this, and this is a smaller component of that, but it's still in some ways patently unfair in a individual investors because th

we, tim, that this is actually good news for people who do this for a living because people like ron insanalot more than the average person about taxes work is nevertheless on the phone to his accountant. accountants all over the country are trying to figure out what this means. bottom line, obviously, republicans are on their way to their first big legislative win. but when you have more than half the people in multiple polls and in some cases probably close to three quarters of people who are either opposed to this or think it's not going to help them, is it going to have a political cost? >> i think it's going to be great for republicans because i think that through a combination of -- the bill was passed in a really bad way. the republicans have not figured out how to legislate. i think it's a good bill. i know that it cuts taxes for 70% of americans a cording to the tax policy center, a liberal group, only 5% of americans get a tax hike. and that -- i think you take the fact there's, i think, been a lot of misreporting on this bill where people make it sound like a tax hike for the mid

will 2018 will one as well let's take a look at the earnings expectations with hope greenberg and ron insana both i'll start with you in terms of your expectations for earnings optimistic or not, earnings themselves should continue to grow, but relative to expectations. >> well, that's a key question with respect to this year's relatively strong numbers, the one or two headwinds that exist next year for profits are going against what have been good numbers in 2017. so the comparables will be more difficult. but you do have some tail winds coming through with respect to tax reform greg was talking about the weaker dollar, global growth, all those are tail winds the head winds are strong comparison, possibly some other wrinkles that may emerge along the way. and the federal reserve might be one of them if it decides to raise interest rates rapidly next year. >> where do you stand in terms of what is already priced, things like tax reform, given it to yourself with such a strong quarter. >> we are not looking at the macros individually, we look at the individual companies but you take this into