robert frank explains. >> reporter: members of san francisco's brd of supervisors epproved an excessive salary tax. ax would apply to any company whose ceo makes at least 100 times the median pay of its san francisco employees. now, companies with pay between .1% and .6% of additional tax on theirhaross receipts,s on top of the current city tax of 1.3% on gross receipts. now, the authors say it would raise up to 1$140 million a yea, which would go to alnd a new me health program. this comes a year after the largest ever tax increase for companies in this city. that.as proposition that taxes companies to help pay for homeless services. the revenue from that tax is still tied up in legal challenges and hasn't been released. portland became the first city in the world to pass a tax on highly paid ceos. that raised a few million dollars a year. now, san francisco politicians blame the tech boom and highly paid ceos and tech workers for driving up housing costs and living costsn the city, adding to that homeless problem. but some say the tax could es change compani to lower tax more business

robert frank, morgan brennan andom chu, welcome, everybody. we have a not of nuggets that are relevant they also pointed to growth in china, india, southeast asia, russia and mexico, as growth drivers actually in the largest market, europe, the company is stockpiling goods to prepare for a brexit >> consumer staples companies in general have had a nice strings of these reports where many have reported organic sales growth. the idea you can grow your business without acquisitions, grow your business in sales without the effects of tail does that winds what's great about mondelez is they're place bets in the right emerges markets and getting it right with the right product mix. that's tough to do no matter where you are, mondelez is doing it right whether it carries the procter & gamble and into other product names. and they have pricing power. >> there you go. >> consumer have paid them >> it's almost looking frosty, but then there's earnings reports like this. >> and the argument have been the valuations have been looking expensive as of late

robert frank, please wear the double breasted. >>> coming up, former baseball commissioner bud seligrecord number of home runs hit last month but not a record number of seats 'lta aut so much more when "the exchange" rolls on >>> welcome back it's all star week in major league baseball and tonight some of the top sluggers face off in the home run derby the winner takes home a million dollars, not too shabby. last month a record number of home runs were hit in the mlb. despite that, baseball attendance is down slightly compared to last year. my next guest was the commissioner of major league baseball for more than 20 years, i'm thrilled to welcome bud selig, currently commissioner emeritus, author of the new book "for the good of the game. thank you for joining me >> a pleasure to be here >> it's all home runs and strikeouts is that alienating people? >> i don't think so. we go through trying to describe to people, in the '60s we had to tinker with the mound, bring in a designated hitter because we weren't scoring any runs and people were so nervous each degrcade seems to bring certai

here to break down the headlines are kate rogers, robert frank and courtney reagan. welcome, everybody first up the consumer is hot, hot, hot and some big names are reaping the benefits today starbucks, this is my number of the day. 7% gain in u.s. same-store sales and they're not the only ones seeing strength. mcdonald's up 5.7% in the u.s. mcdonald's, chipotle red hot as well kate, is anyone not doing well or was it just a strong consumer quarter which we also saw in the gdp? >> we did. so these were the three big names this week. chipotle up 10%. that's another huge number all three of these companies focusing a lot on digital innovation, making sure your experience into the doors is seamless, quick. no matter how you're getting to them is that it's going to be quick and easy they all have fairly new ceo staff. being the most established, been there about four years kevin johnson at starbucks and mcdonald's up 118% from easter brooks' start date in 2015 starbucks up 66% since 2017. chipotle up 144% >> how good does that feel if i were these ceos, i would just leav

admit we are wearing makeup full disclosure, we are wearing makeup >> it's not lip stick. >> a robert frank makeup kit, that should be next. >> i don't think the laida gaga colors would fit for cnbc's brand. some bright purple >> speaking of bright pufrple, the u.s. women's national soccer team has taken home their fourth world cup title from france. i've had difficulty following the contours of the argument here about are they or aren't they being paid fairly based on what >> they're paid differently. so they have agreements with their team so there is a national women's soccer league. it's like the nba but for women's soccer they get paid salaries from there. then they supplement them to the players that are on the world cup team the men do not get a base sal reed that's guaranteed they only get bonuses and it's based on if they win or lose so it's a totally different collective that's guaranteed they only get bonuses and it's based on if they win or lose so it's a totally different collectivethat's guaranteed. they only get bonuses and it's based on if they win or lose so it's a totally

ever sneaker auction this month but a single buyer quickly scooped up the entire collection our robert frankore on what the buyer paid. hey, robert. >> reporter: yes, i am wearing gloves to pick up sneakers sotheby's planning to hold an auction of the rarest sneakers in the world one buyer bought all of them this morning, about an hour ago, for $850,000 that buyer is the canadian marketing executive. he bought all 100 except for one pair, that's the 1972 pair of nike waffle sneakers, one of the first big breakthroughs for nike they only made 12 of them. this pair that was going to be sold was the only one that had never been worn. they're expected to sell, still bidding online up to $160,000. miles said he's not a sneaker head this is a huge new world as he learned he could buy the best collection in the world for under a million dollars he instantly wrote a check. >> i definitely think they're a collectible. i think they're a representation of art, and if you look at the athletes, the fashion designers, the music moguls, the rappers and other people who are now involved in the creation of t

. >>> plus new data showing that economic growth is not helping the inequality gap robert frank wille top of the hour, a big day for jay powell his prepared testimony will be released in an hour's time, 8:30 eastern time and we'll bring it to you as soon as it hits the wires. "squawk box" will be right back. [ dogs barking ] what about him? let's do it. [ sniffing ] come on. this summer, add a new member to the family. hurry into the mercedes-benz summer event today for exceptional offers. lease the glc 300 suv for just $419 a month at the mercedes-benz summer event. going on now. >>> welcome back to "squawk box. futures right now poised with some slight losses dow down almost 60 points and the nasdaq down 20 and the s&p down about 0.1%. two hours before the opening bell. >>> media moguls have gathered in sun valley, and julia boorstin is joining us with one of the players hi. >> hi, mike. i'm joined by david zaslav, ceo of discovery thanks so much for coming and talking us to so early. >> how are you >> i'm good. here in sun valley, people are talking about the streaming wars just y

today we take you inside the home of a tech titan and who else but robert frank to do it >> reporter: today's powerhouse is the home of hp enterprise ceo antonio neri it's located in delray beach underneath this unassuming roof is one room that costs more than $3 million to build. wait until you see what it is. the massive 12,500-square-foot florida estate is the homicide of hewlett-packard enterror price ceo antonio neri he purchased the property back in december of 2018. before he bought the place, we got a vip tour with the broker but what's even more impressive than the 125,000 gallon pool and waterfall in the backyard is just beyond the four bedrooms and five bathrooms past the kitchen and behind these doors welcome to the estate art game room it cost $3 million to build. >> you heard her 6,000 square feet. almost half of this mega residence is a giant gaming wing >> first area you have your video gaming cage. pin ball machines. air hockey table and racing games. also a racket ball court and hi-tech simulator. two lane bowling alley with your other wall of bowling shoes. right pa

inside the hamptons estate of a fashion icon robert frank has more. >>> today's powerhouse is the homen designer's beach front property located in the hamptons this mega home has a unique history because it used to be an old barn in vermont. check it out when fashion mogul elie tahari fell in love with a 200-year-old barn he saw in vermont, the multimillionaire uproot it had uprooted it. you're enjoying oceanfront on one of the most beautiful and serene beaches built in 1998 the fashion icon transformed the old structure into a 4,500 square-foot three-bedroom summer compound that overlooks a 60-foot-long heated swimming pool >> the historic barn has been reconfigured into the central living area of the home so you have a massive dining room table, a beautiful living room with a wood burning fireplace and a true chef's kitchen. >> reporter: up on the second level is the designer's barn house chic master suite. >> it has a beautiful spa bathroom, and you step out directly on to a private porch and viewing area that overlooks the atlanta ocean. >> reporter: now a days tahari says his work

. >>> well, san francisco is looking to slap a new and additional tax on highly paid ceos robert franknow with more on that story >> good morning, david you can call it the tax on the wealth gap san francisco's board of supervisors approving a, quote, excessive ceo salary tax the tax would apply to any ceo's who makes at least 100 times the median pay of its san francisco employees. now, companies would pay between 0.1% to 0.6% of additional tax on their gross receipts. so that's their total sales in san francisco. that, of course, is on top of the current city tax of up to 1.3% on gross receipts now, the tax now faces a vote on the spring overall voter ballot. the authors say it will raise up to $140 million a year, which they hope will fund a new mental health program now, this comes a year after the largest-ever tax increase in san francisco, that was proposition "c." that taxes companies to help pay for homeless services. the revenue from that tax is still tied up in a lot of legal challenges that money has yet to go to the causes it was supposed to fund now, portland actually beca

robert frank at hq. >>> oil prices are up on tensions out of iran. >>> later on, equifax's settlementd the company's $700 million fine ensqwk t see comes back. dow's gone red (soft music) - when i see obstacles, i create opportunities. - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu. . >>> time for our etf spotlight looking into oil this morning as it heads for the biggest gain in more than a week that's after futures spiked on friday following the news that iran had seized this british oil tanker joining us this morning is john, founding partner at agil capital. the point has been made a couple of times, mostly by cramer, that given domestic production, you have to go a long way before you get a supply shock is that true in this case? >> you really do i have been saying

it's time for rapid fire here are their -- dom chu, robert frank, contessa brewer. first up, shares of chipotle are high today after i ate a lot of -- after goldman sachs issued a buy, 28%, goldman says any negative investor sentiment is shortsighted and predicts that digital sales will drive the next leg of that rally stock already up more than 80% this year. >> we use group orders a bit around here. i'm not the biggest chipotle person, many viewers know i like taco bell. but i use the digital platform for the group orders we do around this office here. and it's probably -- >> doing delivery? >> i'm going pickup. >> online in a group, everybody gets their order, name is on it, pick it up from a dedicated rack and fly out the door, i'm done it really is an interesting platform to go with this and chipotle is capitalizing on all of this stuff here if they're getting that many more digital sales which is what the goldman analysts say are driving this, it's a record high. >> people want to know what dom chu does, he picks up lunch for everybody. >> stock to watch and l

the number of homes for sale in the hampton ss is at the heist level since 2006 let's go to robert frank more on what's driving the slowdown >> thanks, guys. well sales fall ng the hamptons for a year and a half straight now. it was the worst spring in eight years. prices down 2.5% compared to the same a year ago. that's accord tog a 234u report. now the hamptons under a lot of is is is same pressures that a lot of high-end market rs under. an oversupply of luxury homes. unrealistic asking prices. a lack of foreign buyers and the new tax law hitting the high tax states and it's unlikely to get better anytime soon. number of homes for sale jumped 84% in the quarter there is now a three-year supply soft luxury listings and the big houses are getting the biggest price cuts here's one house in montauk listed for a mere $34 million. down from 62 million when it was first listed a new years ago it's on 20 acres on the water six bedrooms, four baths and that gorgeous walkway to the beach. guys, back to you. >> robert, thank you > hamptons reality typically follows the rise and fall of the tok m

. >> leslie picker and robert franks >>> stocks surging on hope the u.s. china reach a trade deal as trump and xi agree to hold off on further tariffs. >>> welcome back there may be a truce in the trade war with china as talk continue but there's a lot of uncertainty about the actual deal joining me now with key takeaways from the g20 summit is didn't clifton, ahead of policy research dan, it's great to have you here especially because people are looking for any kind of clarity or certainty what do you think is first and foremost >> kelly, i would start off by saying that the dark period of drafd negotiatio trade negotiations that started may 4th, that period is over this is when both sides went back to the corner and tried to escalate as much damage as possible on the other side we don't have to worry about a future escalation at least in the short run. but by no means does that make anything that came out of this weekend better it just means that we're pausing to see if negotiations can come back together. and the goal would be to see if they can come up

powerhouse today we're taking you inside a medieval mansion once home to an academy award winner robert frankas more. >> that's right. today's powerhouse was owned by actor mel gibson, who sold it to finance executive richard lichter of newbury partners. now the 76-acre estate is located in greenwich, connecticut, but even though a famous movie star once lived here, lichter is having a bit of a hard time selling it check it out this 76-acre estate in greenwich, connecticut, was once the home of actor mel gibson >> mel bought this estate when he was starting to film "braveheart. i think this room in particular sort of had that feel. >> reporter: back if 2010, private equity executive richard lichter paid mel around $24 million for the property >> put the braveheart sword over the fireplace. >> i tried to buy the sword, but that was one thing that mel absolutely would not part with at almost any price. >> reporter: every inch of the 16,000-square-foot residence has a middle ages feel, from the great room with stained glass windows to the library's oak paneling that dates back to the 1600s. even

about the lengths some people will go to help their kids pay for college including giving them up robert frankere to explain >> tyler, another example of gaming the system here the u.s. education department investigating a legal loophole that has allowed affluent families to receive financial aid for their children's college. now propublica and the wall street journal both reporting on a strategy where parents give up legal guardianship of their kids to a friend or relative. the children can then declare themselves financially independent reporting only their own income and therefore qualifying for federal, state, and university financial aid critics say they're benefitting at the expense of truly needy families, but the lawyers consultants involved in guardianship say it's perfectly legal and it's in the best interests of the children. the journal found that most families who sought financial aid for their kids in suburban illinois lived in homes valued at a half million or more with several over a million dollars the education department considering new language requiring students under guar

prices hitting an all-time record our wealth editor robert frank is here with more on what is behindhe numbers and the little turnaround. >> not quite as good as it looks. manhattan real estate posting the first gains in over a year and a half sales jumping 13% in the second quarter. the median price of an apartment in new york city hit an all-time record of $1.2 million many brokers and developers cheering what could finally be a recovery for this market that has seen falling prices in six straight quarters of declines. a closer look suggests maybe another reason, taxes. buyers rushed to close deals in the second quarter to avoid the new tax on real estate sales over $2 million in new york city, that's called the mansion tax. that tax was probably the main reason because the strength in the quarter came mainly from sales over $2 million. homes selling between $2 million and $5 million jumped 37%. the big question now, how bad would the fall off be the rest of the year? inventory at the highest level in seven years sellers of existing apartments offered their biggest price discounts

robert frank here to tell us what the irs is doing to collect, how does it know. >> it's been a goodr bitcoin but not a great weekend, fell 5% saturday after the irs announced it is sending letters to as many as 10,000 bitcoin owners over the next month warning them of potential tax liabilities. the letters which the irs calls educational say the agency has information that you have or have had one or more accounts containing visu contain virtual currency, and failure to pay could result in civil or criminal activity, it won't say how it received the names of bitcoin holders last year, the currency exchange notified 13,000 customers it was releasing information to the irs after it was ordered to do so by a court. the irs last year launched what it calls a virtual currency compliance campaign to deal with nonpayment of taxes and the agency is saying that virtual currency is an ongoing focus for irs criminal investigation the irs published rules about crypto saying it is a property, not a currency, some asking for information on transactions going back to 2013 even if you are trying to

in luxury markets are looking for some creative ways to lure in high net worth home buyers our robert frankexplains. >> reporter: one way developers in l.a. are upping megamansion curb appeal is by adding eye-popping amenities. this hollywood hills home upped the ante with a two-story wine elevator broecker mauricio umansky shows us how it works. >> you can access any bottle of wine from downstairs or upstairs right next to your bedroom >> and the pool includes a subterranean surprise. >> we have a peekaboo window and you can see the pool from the gym as well. and check out this party pad in l.a. to grab the attention of a super rich bachelor, developer don bowland built not one but seven cocktail bars. >> one, two, three, four, five, six, seven >> reporter: and designed a 12-foot waterfall that cascades down theroof into the 80-foot long infinity pool it lured in infamous instagram and marijuana entrepreneur, dan billzarian who bought the place for about $65 million. and a simple garage just wouldn't do for the developer who built this $88 million estate in l.a. >> this is one of the coole

robert frank, seema mody, and dominic chu, and we are going to talk beyond meat let's just wait tillget there. but first let's talk irobot. tariffs from the u.s./china trade war will weigh heavily on revenue. the company lowered its expectations for 2019, guys and the real question is, is this a barometer telling us something about the economy? or is it, hey, the company looking for excuses type of story? >> well, this is a company that is a classic u.s./china trade war loser. not only did it talk about the tariff-related cost but tariffs are also, they say, pushing the economy in china to weaken even further. so that's hurting demand for a lot of their products. this is one of those companies that is taking a proactive approach to move some production out of china they're diversifying moving production to malaysia by the end of 2019. but here's the catch moving production is expensive and they say expect prices to go up >> and prices to me is the key here i wonder to what extent it is an excuse their new model of the roomba is $1,100 >> but in a way. >> that is a lot >> and big inno

loophole that is beloved by the wealthy and considered one of the biggest abuses in the tax code robert franktory. >> good morning, david it is one of the favorite tax breaks of the wealthy and it costs the government more than $30 billion a year so democrats want it eliminated. it's called the stepped up basis. it basically allows taxpayers to inherit assets without paying any tax on the appreciation during the owner'sowner's lifetime joe biden has made getting rid of step up a centerpiece of his tax plan and maryland senator chris van hollen is about to propose legislation killing step up, calling it a major loophole that wealthy households use to shield their investments from income taxes so here's how it works say an investor bought $2,000 worth of apple stock in 1999 say it's worth about $200,000 today. if the investor would sell it today, they would pay a capital gain on that consider 198,000 difference so the total tax would be around $40,000. if, however, the investor holds on to the stock until he dies and passes it to his family, they would never pay any tax on that gain. the tax ba

elizabeth warren's wealth tax sparking a bill war in the democratic party robert frank has the detailstarted when larry summers, the former treasury secretary and obama economic adviser, published an op-ed in "the washington post" criticizing warren's wealth tax. he said that revenues from the tax would, quote, likely disappoint and would probably raise 25 billion to 75 billion a year rather than the 200 billion projected since the rich would find ways of avoiding the tax. now, the two economists who helped create that tax fired back at summers saying, quote, he's just assuming the wealthy can't be taxed they said most wealth today are in stocks, which are easily valued and proven and taxed. and the irs enforcement would be strengthened under the war on tax. the fight then moved to twitter, summers saying he's always for taxing the rich but would rather do it by fixing loopholes, appropriately taxed capital gains, and tax compliance. then, very cool to attack young academics for doing policy relevant research and offered summers a bet. if the wealth tax yields 80% of our estimated reve

robert frank has more. >> joe biden, bernie sanders, cory booker, beto o'rourke and amy klobuchar allr a higher rate on capital gains what would the impact be right now rate on capital gains is 20% rate on income tax 30% many candidates want those rates to be equal. the two rates were equal in 1987 investors rushed to sell before that tax then revenues fell by 50% in 1987 most of you show no connection between capital gain taxes and economy and market but 70% of capital gains go to top 1% you see why this is popular for democrats. >> makes sense capital gains tax is lower than income tax when people take risk with their capital. it's different when it's a back seat tag a long type of investment >> there's an argument that because you can also write off your losses from capital gains that you're not really taking entire risk with that capital and so, therefore, you don't need that incentive. plus there's so much capital in the world right now. do you really need a push from taxpayers to subsidize investment >> on a practical level that's different when you first initiated capital gains

>> julie and frank, robert mueller is a rather reluctant participate. he never wanted to testify but is complying with subpoenas from two congressional committees. we talked with a law professor who knows mueller about what we can expect. >> reporter: robert mueller is scheduled to testify on capitol hill wednesday, spending three hours before the house judiciary committee in the morning and two hours before the house intelligence committee starting at noon. he is a reluctant participant, stating in may he felt his special counsel report was sufficient. >> the report is my testimony. >> he's not a guy who likes to talk doesn't l talk on camera. >> reporter: law professor rory little spent time with mul ner the justice department. >> i don't know anybody more controlled than bob mueller in terms of both being honest about his reas but also being closed mouth about things. >> reporter: the u.s. justice department has told muler to limit his testimony to what's in the report. and little says mueller likely will stick to it. >> some people would be trying t

the irs warning more than 10,000 cryptocurrency holders they may have broken federal tax laws robert frank news that i think came out on friday, right >> it did, it came out on friday and caused instant reaction saturday morning bitcoin plunging following that announcement from the irs that it was putting bitcoin holders on notice for possible failure to pay taxes part of the concern is the tax liabilities the irs plans to send what it calls educational letters to as many as 10,000 holders over the next month warning them of potential tax liabilities, including of course any capital gains they may have acquired during the holding of bitcoin. there are three types of letters. one of them is pretty mild, it asks them to review their returns. the second a little stronger, warning of possible non-compliance and the third says that for one or more tax years from 2013 to 2017, we have not received a return reporting your virtual currency transaction, and that letter requires a response now, the irs won't comment this is the most interesting thing, on how they received the names of bitcoin holder

thanks, brian >> thank you >>> real estate in the hamptons, typically tied to the stock market robert frankels all on sale now >> the stock market up 30%, the hamptons has posted six-straight quarters of falling sales. the second quarter was the worst spring in eight years. it's unable to rebound there's a record number of homes with inventory up 85% over the last year. the weakest segment, the very high end there's a three-year supply of luxury homes for sale. and 10% to 20% price cuts are becoming increasingly common the ten most expensive homes last year, spent an average of two years sitting on the market. brokers say, there's a few signs of hope. that remains strong. the rental market is holding up. and there's buyers out there they are sitting on the sidelines until prices become more realistic and bargains in the hamptons, as i mentioned, all relative. the average sale price in the hamptons, 1.7 million. >> for city dwellers if you have a place here, you need a place out in, you know, where you're not in the city but if you have a beautiful house around here, you don't need a house i

city is taking aim at ceo pay and others could follow robert frank joins with that story now. rew. members of san francisco's board of supervisors approving an excessive ceo salary tax the tax applies to any company whose ceo makes at least 100 times the median pay of its san francisco employees. now, companies would pay between 0.1% and 0.6% of additional tax on gross receipts in san francisco. that's on top of the current city tax of up to 1.3% on gross receipts the tax face as vote on the spring ballot. authors say it will raise up to $140 million a year which will go to fund a new mental health program. this comes a year after the largest-ever tax increase in san francisco. proposition c taxing companies to help pay for homeless services the revenue from that tax is actually still tied up in legal challenges portland actually became the first city in the world to basically tax highly paid ceos and, of course, many people in san francisco blame the tech boom and highly paid ceos for driving up housing and living costs, of course adding to that huge homeless problem in san fr

. ♪ >>> the irs announcing plans to go after some cryptocurrency investors for back taxes robert frank more details i guess some are long-term games. >> did you get -- >> not yet the irs sending letters to as many as 10,000 bitcoin holders over the coming weeks warning them of potential tax liabilities. the letters which the irs calls education, says the agency has information that you have one or more accounts containing virtual currency and failure to pay the proper amounts could result in civiland criminal enforcement. coin base, the currency exchange, they notified about 13,000 customers it was releasing information to the irs after a court order. the irs launched last year what it calls a virtual currency compliance campaign to deal with nonpayment of taxes, the agency saying that virtual currency is an ongoing focus for irs criminal investigation the irs did publish rules on crypto in 2014, saying that crypto is not a currency but it is a property and therefore subject to capital gains tax but crypto holders saying the agency failed to release specific guidance for taxpayers. irs

calling for a specialized tax on the ultra rich but some on the left aren't agreeing with her call robert frankning, scott well it all started when larry summers the former treasury secretary and obama adviser published an op-ed in the washington post saying that the revenue estimates for warren's wealth tax were likely to disappoint he used the estate tax model saying that the tax would only raise about 25 to $75 billion a year since the rich would find ways of avoiding the tax and hiding a lot of their wealth now the two economists who helped create that proposal both at the university of california berkley fired back at summers saying, quote, he is just assuming that the wealthy can't be taxed most wealth today is in stocks which are easily valued, easily proven and the irs enforcement would be strengthed under the warren tax fixing corporate taxing, closing loopholes, appropriately taxing capital gains and the audit and enforcement of tax compliance. now rather than a wealth tax which he said could be unconstitutional and had been abandoned by most other countries he favored those other iss

candidates for president are taking aim at income inequality and abuses they see in the tax code robert frankne of the biggest targets. >> good morning. it is one of the favorite tax breaks of the wealthy and democrats say it's a costly give away to the rich that needs to be eliminated. it's stepped up basis. basically allows taxpayers to inherit businesses without ever paying tax on the appreciation during the owners' lifetime. joe biden has made getting rid of it a center piece of his tax plan and maryland senator crist van holland is about to propose legislation killing it calling it a major loophole investors use. so here's how it works say an investor bought $2,000 of apple stock in 1999 if the investor sells it today they pay capital gain on that $198,000 so that's around a $40,000 capital gains tax. if that holds on to the stock until he dies and passes it to his family or anyone else, they never pay any tax on the gain. the tax basis for the stock would be $200,000. the same value at the time it was transferred. and the heirs would only pay gain above $200,000 if they ever sell it. so

robert frank joins us with more on that. >> good morning, becky manhattan real estate posting the firsta half sales jumping 13% in the second quarter according to data from douglas allen and sandler and the median price in north korewi a $1.2 million and many developers cheering what they say could be a recovery for a market that has seen falling prices and six straight quarters of declines. but a closer look suggests maybe another reason taxes. buyers rush to close deals in the second quarter to avoid the new tax on real estate sales called mansion tax that is anything over $2 million in new york city now we know the mansion tax was a main reason because the strength in the quarter came mostly from sales over $2 million home selling for between $2 milli$2,000,005,000,000 jump. if you look at homes under a million dollars they've fell big question now is how bad, if at all, the fallout will be for the rest of the year inventory now at the highest level in seven years. severals of existing apartments offered the biggest price discounts in nine year as cording to brown harris. the biggest

and eliciting some joyous tweets from president trump and some joyous millionaires in new jersey robert franks cheering for blocking the new millionaire's tax. quote, congratulations to legislators in new jersey for not passing the millionaire's tax. he tweeted new york and others should start changing their thought processes on taxes but while the new jersey legislator blocked phil murphy's hopes for a millionaire's tax, others are making good on the democrats on the campaign trail to tax the wealthy massachusetts the legislature is taking steps towards the first ever millionaires tax. they voted to impose a 4% surtax on those making $1 million or more it will require a second vote in two years because the vote quirk that can be ratified by voters in 2022. in illinois led by j.b. print kerr, voters will decide on a new plan to abolish the state's flat tax in favor of a progressive tax where filers pay 8% on income over $1 million a year it will be on the broader ballot next year. and in connecticut, they scrapped plans for raising the tax on the capital gains we talked about on this show for

another legal shot fired in the so-called salt war robert frank joins us this morning.mplications of this big battle. >> good morning, andrew, new jersey, new york and connecticut filing a lawsuit yesterday against the trump administration to roll back the new rules on state and local tax deductions the suit is actually the second filed by high tax states that have been hit hard by the new $10,000 cap on state and local tax deductions known as salt it's a work around states were trying to use to get around those cash they set up charitable funds where taxpayers have pay for school and local governments, get a state tax donation and take the deduction for that charitable do nation from their federal taxes. new york collected 93 million in its charitable gifts trust fund treasury said last month those funds are illegal. the lawsuit saying that decision is arbitrary and outside its authority. what the three governors are not saying is that 96% of the benefits of repealing the salt cap would go to the top 20% of taxpayers. new jersey governor phil murphy telling cnbc yester

robert frank has been looking into that. >> good morning, becky over $30 billion expected to pour intoe become a favorite investment of the welgty but rather than rescuing distressed neighborhoods, they're often going to luxury hotels and projects in big cities that probably would have been funded anyway if an investor sells a company or stock or asset for a profit, they can put the proceeds into an opportunity fund without paying a capital gains tax the fund then invests in an opportunity zone, which are supposed to be in disvangd neighborhoods. now the cape tal gains tax is deferred depending on how long the investor keeps their money in the fund. there are no reporting requirements, no dollar limits on how much you can put in, no transparency and no basic oversight. a study found that a quarter of the more an 8,000 opportunity zones in the u.s. are in areas with already high investment like new york city, miami, l.a., san francisco, and boston. opportunity fund projects currently include a luxury hyatt in one of l.a.'s fastest growing neighborhoods, luxury apartments in downtown den

frank figliuzzi, former fbi director for counterterrorism who worked for robert mueller during his career in law enforcement. we welcome you both. frank, i would like to start with you. has time given you any more, any further perspective on what our friends, the historians, will take on, the degree to which this attorney general gave the man who hired him, the president, the air cover he needed during those first crucial days before we had seen the report? >> brian, as the calendar collection by it becomes more and more apparent that this attorney general is essentially aiding and abetting concealment of what the special counsel actually found. and he is in conspiracy with this white house to disguise the findings of the special counsel. we have a special counsel who played by the rules because that's what we expect special counsels to do. and we have an attorney general who pulled those rules like a rug out from under bob mueller. it felt like a sucker punch to the american people. but now we're a nation wrestling with that question, what to do with substantial evidence of wrongdoing ag

but democratic leadership is also looking ahead to next week where robert mueller will testify. and jeremy and frank saw nancy pelosi earlier today sort of downplaying the impeachment vote. obviously, she's spent a lot of time and energy. that's just what we've seen in public but also in private trying to keep her caucus together around the question of impeachment. what are the stakes next week for the mueller testimony? >> she's been very clear she thinks this vote is way premature and sends the wrong wreckage and substantively is not correct. i do think the mueller testimony going to be important. number one, just to hear it in his own voice in a very just the facts kind of presentation that marine, that nonpartisan, nonpolitical official i think will be very powerful. and then i think there's a lot of new information about the way the attorney general presented the information. and also about what really motivated bob mueller's ultimate decision not to charge the president. i think that's going to make for a very compelling hearing, and it's going to really define the contours of the way forward

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robert: i don't think and the banking system. dodd-frank can be thanked for that. for trouble, which you always have to do if you follow this industry, i don't see anything within the banking system that is worrisome in terms of risk. i really doubt there will be at the end of the cycle, whenever it happens, any kind of mass loss issue. it is a different industry in psychology. the largest banks have been moving out of lending. tom: the commercial aspect. robert: look at their capital ratios now, much higher than they used to be. for lendingooking opportunities, -- you don't run a bank like that if you are looking for lending opportunities. you are looking for fee opportunities. francine: there are questions whether deutsche bank will meet their target and whether they need to raise capital. how well this and? -- end? seen for all of that sector, all of wall street, solid double-digit trendline growth. it was substantial. it is no longer. goldman sachs is a good example of ingesting for that -- adjusting for that. the bankers trust combination with deutsche's pushed

committee who you just saw questioning robert mueller earlier today, congresswoman val demings of florida and congressman raja of illinois. you focused on the franknessers he gave. do you feel like you learned something new about the process by which robert mueller came to the decision to ultimately not seek a live interview? >> yeah, i mean, you know the special counsel tried almost a year to get the president to sit down. he refused to do that. and so when we asked today about the president's written responses, special counsel was really loud and clear that the president's answers contradicted much of the other evidence in the case and also that his answers were not always truthful. and so i do believe that that was something additional that we did here, the special counsel today. >> i think you're right about that. i think that was one sort of piece of genuine new news today, his characterization under your questioning. the other thing that i thought was new news came out of congressman, your questioning about the ongoing fbi investigation as regards counterintelligence. i want to play that exchange and get your response to it. take a listen. >> s

desjardins: for more than 100 pages, robert mueller lays out scores of russian contacts with the trump campaign or the trump presidency. from the start, mueller is frankbout why, to see whether those contamps constituted atd russian interference or influence on the election, and whether these contacts o resulted in coordinati conspiracy with the trump campaign. brangham: and mueller's conclusion about this conspiracy comes right away. xt in the very line, mueller writes, "based on the available information, io the investigdid not establish such coordination." mueller reached that conclusion even though, he writes, "there were numerous links between the campaign and the russians, that several people connected to the campaignli to his team and tried to obstruct their investigation into their contacts with the russians." desjardins: ok, let's talk heabout specifics with contacts, starting with the trump business and a big event in russia. group: welcome to moscow! desjardins: in 2013, donald trump takes his miss universe pageant to moscow. the mueller report points out, this is how the trumps got to know aras agalarov,a ssian billionaire and ally of vlad

figliuzzi pointed out, and i think frank is back, donald trump may have revealed and rachel maddow pointed this out as well -- i'm sorry, i have been here a long time. robert mueller may have revealed or even let it slip that there is an ongoing and open counterintelligence investigation. frank, set that up for us. >> yes, again, i want to see this clip because we only saw it live but i believe it was representative christian mirthy who asked for a response and mueller said they're looking into the multiple aspects of the investigation continue. and he said currently? and mueller said yes. if i've got that right in any way, shape or form, there's still an ongoing inquiry, in fact the original russian counterintelligence case that started this whole thing off, that andy mccabe added trump's name to and then it became the special counsel inquiry, that aspect of it may still be going on. >> let's watch the tape. we will come right back to you, frank. >> it was outside the purview of your investigation, your report did not address how flynn's false statements could pose a national security risk because the russians knew the falsity of those statements, right?

. >> by now you've heard no bomb shells from robert mueller but he did have things to say. good evening. i'm julie haener. >> i'm frank somerville. the president was not impressed by mueller's appearance. the president called it a great day for republicans. mueller's testimony was mostly dry and dispassionate during more than six hours of questioning. as promised, he stayed close to the statements in his written report, and he distanced himself from topics of presidential crimes and impeachment, leaving that to congress. >> i think looking at this there was political grandstanding, followed by short one-word answers from mueller. clearly one of the big messages he had today that was very important and also irrespective of party is he warned his investigator did find foreign election meddling. it's real and a grave threat to our american democracy. >> reporter: robert mueller was sworn in wednesday at the house judiciary committee hearing in the morning and the intelligence committee hearing in the afternoon. he gave guarded answers about his report on russian election interference and the trump campaign, declining to

we had a frank exchange of views and a strong, strong commitment to going back to the negotiating table. robertse negotiations and as we speak plans are being made to reengage with the chinese both in china and here in the united states. what we prefer to do always is negotiate behind closed doors in good faith and not in the newspapers. >> but is it realistic to get china to make any accommodation at all on the base of the way it structures its economy? that's the core of the objections -- it's a top-down economy with subsidies and various special arrangements between the government -- is it realistic to have any movement on that at all? a of course it is, and we had 150-page plus agreement that dealt with the seven structural toues that we are trying resolve, including forst technology transfer, electoral the state owned enterprises. there is a recognition within china, particularly with the ones leading the negotiations that in order for china in the chinese economy to get to the next leg of growth and prosperity they need to make these fundamental structural reforms. there's will in china t

robert f. kennedy's side when the call came in that jfk had been shot. he's survived by his wife lucinda franks and his five children. >>> oregon is adopting a new law that excuses absences from public schools for mental health days. the measure treats them like sick days. the law is believed to be the first of its kind to address mental health and physical health equally. it's designed to encourage kids to admit when they're struggling. suicide is it oregon's second leading cause of death in the 10 to 34 bracket. >>> three of the inmates that escaped this weekend have been recaptured. 17-year-old davian baldwin, a fourth 16-year-old is still at large. they staged a fight and then attacked staff members who responded. they fled the facility in a car stolen from one of the staff. the car had van nilt at this plates. >>> a group of fathers and sons out on a weekend fishing trip on cape cod bay. >> good one. oh, no! >> oh, my god. >> i got it on video. i got it on video. >> that, in case you missed it, was a great white shark leaping out of the water next to the boat and stealing a fish right off

robert kennedy. nothing seemed to be getting done. fast forward 50 years, nothing is getting done. frankremind us that things can get done and there can be a focus and i always think, frank, good to see you a lot of those astronauts with whom we chatted almost had to have blinders on, focusing on getting to the moon and everything. the planet they left behind was going nuts. >> what they said was so amazing, looking back at the country at daybreak, you can't see any borders, violence, just saw planet earth. there has to be a catalyst that goes beyond politics and economics and says there's something special about being alive, particularly being alive as an american. we're missing that. >> neil: what i remember too about it, obviously 9-11 was a unifying event but in a tragic way. this was an achievement of incredible proportions. we realize what we're capable of when we set things aside. even as a war was ongoing, political divisiveness, it is a reminder that we can do bigger things in the midst of a lot of things. >> kennedy made the commitment in 1961 and we did it before the end of th

frank, let me start with you here. listen, the democrats seem to say, hey, not everybody has read the mueller report, so let's have robertk about this. do you think it will have the impact they're looking for? >> i think it depends on the degree to which americans want to hear directly from the man himself. if they do that. if they turn into replays of the day's testimony, they will be impacts by the report. i'll be keeping a score card at home. i will be measuring the amount and the number of times the republican members of the committee ask a question or make a statement that has nothing directly to do with the findings of the mueller report. keep track of that. keep track of how little they want to hear from mueller on his findings and how much they want to distract viewers and get them off on origins of the report and other issues. >> how much information, caroline, will be factually substantively new do you think we might get, if any at all? >> approximately zero, hallie. if there's anything we know about robert mueller, he is a reluctant witness. he does not want to testify. we already know based on his previous te