on bank accounts the backlash from banks, payment companies, and consumers alook has been swift robert frank will the irs be spying on us robert >> kelly, this white house plan would require banks and payment services to submit more information on accounts over $600 bank lobbyists and opponents say this is an invasion of priorsy the irs wants to monitor every deposit, withdrawal, and atm transaction. they say compliance wlb costly and burden shom, they say the irs can't be trusted with sensitive data and they say the irs wants to tax your venn mo and cash app payments here is what is being proposed the white house plan requires two numbers, the total deposited and the total withdrawn for the year not every transaction. as far as the payment services, american rescue plan, that was passed in march. it requires merchants to report transactions over 600s on, say, venmo or paypal that takes ekt effect january 1st 2022 the biden administration expands those to individuals again, gifts to individuals or friends are not being specifically taxed the house plan hasn't included this in its early draft

robert frank is here with that story. >> kelly, a record number of taxpayers are using location appsgh-tech state at least half the year. the app called maneo says access has doubled in the last year. >> moving from high tax states to low or no tax states. the biggest corridors are new york down to florida and california down to texas >> but new york, california, new jersey, already sending audit notices to those who claim they have moved the rules state in order to change your tax resident you need to meet more than the 180 day rule you have to establish domicile severing ties with your old state, selling your house or apartment, moving your dog, your dentist, your kids' school, your office all to the new state. high earners are automatically audited with collections reaching over $1 billion those who skip out of town or a year or so and then return will also get caught because new york has three years just to inform you of an audit. you may not know you are being audited until 2024. >> if you move out of one of those states, you automatically get audited? >> sort the hotel californ

robert frank is here with the details and how some may already be trying to avoid it. bert. >> reporter: kelly, we are still waiting on the details of this tax proposal to raise revenue for the social spending plan democrats are looking at a special billionaire's tax. it would apply to marketable security, so that's stocks or bonds, rather than owing a capital gain tax when the stock is sold. the government would tax the annual increase in a stock's value or unrealized gains regardless of whether you sold so elon musk, who gained $120 billion in paper wealth this year but hasn't sold any shares, he would actually owe a tax of $30 billion. illiquid assets like property or art would be taxed retroactively after they're sold billionaires with an annual loss would get a credit against future taxes as you mentioned, accountants and tax attorneys for the wealthy already looking at potential loopholes here some are looking at trusts to hold their stock, others looking at perhaps putting assets into their foundation or gifting to charity to put them under that $1 billion thresh

our robert frank that does it for "the exchange," every.me to "power lunch. we've got a busy hour ahead. here's what's on the menu. chipotle, for one. higher prices for food and delivery they are not turning away customers. digital sales are up, profit more than doubling the ceo will join us to discuss his strategy for the months ahead. >>> plus, new threat a shortage of magnesium could threaten t

robert frank joins us with what could be a super salt deduction for the welty. >> good morning, davidte or local reductions or maybe adjust the time horizons but with talks of a smaller reconciliation package in the works, they need to cut costs and repealing salt would cost over $85 billion a year in lost revenue adding to those complications are questions over two tax provisions that are tied to salt whenthe $10,000 cap was create the tax cuts and jobs act got rid of most of the alternative minimum tax and the pease limitations. those two programs effectively served as limiters to salt deductors. high earners could deduct from their federal returns unless those are also restored simply repealing salt would create a super salt windfall for the wealthy, according to the tax foundation repealing salt by itself gives the 1% a tax cut of $25,000 a year if they repeal salt and bring back the two other limits, the tax cut would only be around $7,000 a year. so far none of the supporters of s.a.l.t. repeal talked about the two other programs which could help reduce the benefits to the wealt

robert frank >>> coming up when we return, crude prices higher again this morning.wti energy watcher john kildof is going to join us next and then tom fanning is going to tell us why we could see sticker shock on gas and electric bills this winter you can watch, do it anyimon te the cnbc app we're back after this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones at cdw, we get how to achieve calm i'm amidst the chaoshis. of a hybrid workforce. google chrome os orchestrated by cdw brings you built-in proactive security with no reported ransomware attacks ever and simplified management with fast deployment and zero touch enrollment, so that nothing disturbs your peace. for built-in security and fast deployment, trust chrome os and i.t. orchestration by cdw. [ eerie music playing ] michael myers survived that fire. after what he's done to my family... i will kill him. tonight we hunt h

robert frank has that story for us hi, robert >> reporter: hey, morgan it someone of the mysteries ofg to those at the top. robinhood alone added 10 million accounts during the pandemic now at over 22 million part of what the company calls the democratization of the market. but according to the latest fed data, the top 1% now owns over 54% of stock wealth. the top 10% owns nearly 90%. both just reaching all-time records. now, market economists say there may be three reasons for the growing concentration. first of all, you have the new retail investors, they're large in number, but may be small in account size the average robinhood account is now about $4,500 smaller and younger than those that say schwab or vanguard new investors came into this market at higher prices so their upside may not have been as large. and they're more likely to trade rather than buy or hold, especially with the most volatile stocks, so their returns generally have been lower. the 1% saw stock gains of 43% over the past year and a half. compare that with about 33% for that bottom 90% of investors morgan, we s

there are moves being made already to game the system and robert frank joins us with the a breakdown. through here. we hope to get the details of the tax maybe today or tomorrow but as you nementioned, accountants already looking at loopholes. the first set of work arounds is focused on trusts so billionaires could set up trusts to reduce our eliminate their tax. they would likely give up some voting power in that structure but the beneficiaries could be family members so the ownership would still be protected then there's charity the tax applies to those worth $1 billion or more, since half of billionaires in the u.s. are around 1 to $2 million, they could gift assets to their foundation or a charity to get them right under the threshold, they get the tax deduction and avoid this annual tax. and then there's staying private. the annual tax as we've heard about right now would only apply to marketable securities like stocks or bonds, closely held assets like private companies, art, gold, property would not be subject to an annual tax, subject to the tax once it's sold so you can see p

lyrics, and check out these kicks, one of the first pairs that michael jordan won as a pro cnbc's robert frank is tracking it all tonight report >> well, kelly, sotheby's making a big bet, now both digital and physical, sotheby's is not as dependent on new york for its sales. they're hoping in auction blitz will attract a whole new crowd of west coast and younger buyers. >> las vegas, we found, is a convenient hub for people from, say, texas, as well as california, to travel to, so that's a lot of the clientele who are going to be attending the sale, are people from the broader region. >> the art is integrated into you're daily existence. >> the first auction is at bellagio's it includes a famous portrayed of marie torrez, expected to go from 20 to 30 million. on sunday sotheby's brings out the bling with the luxury sale the star of the night last quarter michael jordan, or his old sneakers he wore this pair of 1984 shoes in one of his first games in the nba. the current bid, kellie, $1.1 million. >> robert, thank you so much. >>> ohio unveiled a new license plate. it features the wright broth

enough i would think to dissuade a lot of people from making that choice maybe that's the point robert frank thank you. >>> that does it for "the exch exchange", "power lunch" begins root now >>> move your dog, change your dentist, pick a different school you have got to do it. it is not just 183 days, folks you have got to move welcome, everybody, to "power lunch. here's what's ahead. as for you all my friends who have gone south to florida bitcoin's watershed moment price is $60,000 as the s.e.c. gets set to apparently allow a futures etf a potential step to opening the crypto market to a much wider audience. >>> consumer spending rose despite shortages rising prices, and the delta variant. >>> and it is not just shipping and trucking bottle necks. it is not just covid there are forces at play that no one is talking about, and they could really transform the globe economy. >>> quick check on the markets they are off the session highs the dow is up 365 right now. a 1rz gain, a strong two-day rally. jp hunt is on track for a record close with today's nearly 10% gain, this after reporting str

our robert frank that does it for "the exchange," every. "power lunch" begins right now >>> good afternoon, everybody. and welcome to "power lunch. we've got a busy hour ahead. here's what's on the menu. chipotle, for one. higher prices for food and delivery they are not turning away customers. digital sales are up, profit more than doubling the ceo will join us to discuss his strategy for the months ahead. >>> plus, new threat a shortage of magnesium could threaten the global auto industry it is a key ingredient in aluminum, which is a big percentage of today's cars and trucks what's the impact going to be on ford and gm and others a new report has light on this emerging risk. >>> the next frontier, trading baseball cards going digital and venture capital, kelly s pouring in. >> going digital i can't wait to see what that looks likes. >>> the dow is up 62 points. the outperformer the s&p down by nine the nasdaq, down 150 points, about 1% this, of course, the flip side of higher bond yields which we are seeing globally and higher inflation

to claim a new tax residency and many of you out there may be going to greet lengths to do so robert frank joining us now it's all about the 50% mark every minute, where were you every day of every year? >> that is the start many taxpayers who have not commuted to work or lived in a different state are now trying to change their tax residency. the so called 183 day rule whereby that's being away for over half a year does not exempt you from taxes state tax authorities especially in new york, california, and new jersey are cracking down on that accountants say many clients are already getting audit notices if they tried changing their tax status there are two categories of taxpayers, first nonstate tax residents who used to commute are now trying to claim exemption from earned income but if your former office is, say, new york state, you still have to pay new york taxes even if you didn't go there for a year and a half. some states may even add on their own income taxes so you get double taxed the other category is state residents who are trying to change their entire tax residency. say fro

. >> very interesting, very epful as well, robert frank. >>> that does it for "the exchange." we are just getting started. "power lunch" begins right now >>> welcome to "power lunch," i'm flank holland in for tyler mathisen here's what's ahead. the minutes of the last fed minute are out any second now. it could include key insights into what policy makers are thinking about inflation and the taper time line. >>> also breaking the bottleneck the white house attempts to ease the backlog at the ports are transportation companies already maxed out? a top analyst weighs in. >>> buy this, sell that. our monthly report of flames to own and the names to ditch in two sectors. >> frank, welcome. thank you. >> ahead of the fed minutes let's get a check on markets dow is down 15 s&p up 11, nasdaq 92 at session lows the dow was down 250 points the ten-year hovered around 176 early in the week, yesterday morning. and now at 1755. steve liesman has the key headlines for us he's digging through them right now. bob pisani at the nyse ethan harris and mike santoli join us. ethan, what's the bas

data showing companies paid a record amount of taxez last year we got more on all of this from robert franke. corporate income tax receipts hitting $370 billion that's in the 2021 fiscal year ended september 30th that was up 71% or i should say 75% over last year and up 61% in 2019 it was higher in the corporate tax cuts it brought it down from 35 to 21%. you had lower rates and more ref no. as a share of gdp, corporate taxes are high tore 1.63%. the reason for high ev rer news? record corporate profits many say this won't be repeatable since the surge in profits followed the shutdown of the pandemic, but if you look at revenue from the wealth years income tax revenue up 28%. expect it to top $2 trillion say much was from capital gains with the wealthy catching in on gains from stocks and other assets if you look at total federal taxes paid, in the fiscal year, they reached an all-time high in nominal terms of more than $4 trillion that was the highest share of gdp in taxes paid in almost 20 years, andrew. >> robert. was there any sense that we talk about the capital gains issue and people

robert frank joins us right now with more on what could create a super salt deduction for the wealthyble. >> so far, we'll see what happens, just lifting the salt cap, that will be the easy part, they will have to address two other tax provisions that could complicate any reform. that's because the tax custom jobs act made three big changes related to salt. first there was that $10,000 cap. it got rid of most of the alternative minimum tax and appeal the peas limitation those two programs effectively limited the amount of state and local taxes that high earnings could deduct from their federal taxes without restoring those, repealing salt could create what some are calling a super salt windfall for the wealthy that's according to tax foundation, repealing salt and restoring the amt gives the 1 percenters a tax cut around $700 a year if they repeal salt without the other two causes the tax cut is around $25,000 a year. now earners between 200,000 and 500,000 a year, they get a tax cut of 2,400 with straight salt appeal, a tax increase of $2,000 if you repeal salt and bring back those o

are due and many haven't worked in their previous tax state for more than one and a half years robert frankns us with a look at new data that shows how many high earners are using location apps to show they no longer owe tax in new york, new jersey and other high tax states the fight is on. >> it is on. many taxpayers who have not commuted to work are now trying to change their tax residency. look at location apps they track your movements for tax purposes they have seen business double since last year. the main patterns are northeast taxpayers to calflorida and cala moving to texas or nevada. but the so-called 183 day rule does not exempt you from taxes and new jersey and new york are cracking down already flooding with audit letters there's two categories here, one is nonstate residents who used to commute if your office was in new york city you still have to pay new york taxes some states may add their own income taxes so you're paying twice. state residents trying to change their tax residency say from new york to florida they have to prove a new domicile, that means severing all your t

for that, who else to bring us the story but robert frank robert frank, good morning >> reporter: goodlion traax hike on top earners and highest rates in over 40 years biggest change, the surtax extra 5% on income over $10 million, and 8% on income overs $25 million. all in all, top margin's rate goes to 48.3%. highest since 1986 now, look at new york city's top earners, combined city, state and federal tax would be 63. % california looking at 62.1% and new jersey, 59.6%. millionaires' surcharge also applied to capital gains sell a family business or investment you could face a top capital gains of 31.8% that is also highest in 40 years. since many states treat capital gain as ordinary income, if you look at new york and california, the combined rate per capital gains would be over 45%. there are only about 24,000 taxpayers who report income of more than $10 million. really just talking about the top 0 .2%. these account for more than a third of capital gains realizations are by those over $10 million. andrew >> do you expect a lot more moving among those folks that you just mentioned

horror of horrors, robert frank.t matter how much money you have, they have the same problems as us >> yeah, they do this is now a big industry problem, joe a record number of travelers are now flying private you combine that with supply chain and labor issues and you have growing delays, cancellations and a lack of available flights. july was the busiest month ever in private jets with 300,000 flights. normally business wouldtaper off in the fall but september and october are now also set to surpass those records. there are waiting lists for new planes inventory of used private jets is at an all-time low. there is a pilot shortage, a crew shortage, a parts shortage, even a private jet tire shortage, net and ascension have suspended sales, net jets also pausing sales of light jet cards, fractional sales and leases the company saying the demand is the highest in the 57 year history and taxing the air travel infrastructure in ways we haven't seen for years wheels up saying it is uniquely positioned for this capacity sh

. >>> corporate tax revenue is at all time highs thanks in large part to record profits robert frank enue hitting a new record in the latest fiscal year that's according to the congressional budget office. corporate income tax receipts topping $370 billion in the 2021 fiscal year, that ended september 30th that was up 75% over last year and up 61% over 2019 it was also higher than the period before the trump tax cuts which, of course, brought that corporate rate from 35 to 21%. so we have lower rates and hire revenue. and now the reason for this record revenue is record corporate profits. many say the numbers may be a one-off since the surge in profits followed the shutdowns from the pandemic. now, if you look at revenue from the wealthy, that was also approaching records, income tax revenue up 28%, expected to top $2 trillion. tax experts say much of that was from capital gains with the wealthy cashing in on their gains from rising stocks and other assets if you look at total federal taxes paid in the latest fiscal year, they reached and all-time high in nominal terms of more than $4

. >>> sotheby's is changing up the traditional strategy and heading to vegas robert frank is here withal and the wealthy spread out around the country the houses are following the money. sotheby's opening pop-ups in monaco, the hamptons and now las vegas. traditional bidders can still bid online and the company hoping to atraktd a new client base there on the west coast who may not have attended the new york sales first auction at the bellagio on saturday with a collection of 11 picassos they could fetch over $100 million. the paintings are sold by mgm resorts including a famous portrait of marie teresa and then on sunday sotheby's brings out the bling with a luxury sale with jewelry, handbags, cars and watches, and a signed pair of michael jordan sneakers the size 13 of 1984 nike air ships, a first pair that jordan ever wore in a nba game. bids have already hit $1.1 mil million. that could become the most expensive sneakers ever to sell at auction sara, when sotheby's is selling sneakers in vegas you know it's a new world of collecting. >> i was going to ask you if the air ships would

visit indeed.com/hire >>> as the wealth tax proposal continues to gain momentum, our robert frank iss. they're already trying to figure out how to get around it, huh? >> yep, david. they're already at work on that. now, we don't have the details on this tax yet, but accountants and lawyers for the wealthy already working hard on potential loopholes. one tool for avoiding this tax could be trusts. billionaire founders like elon musk or jeff bezos could place their shares in a trust so they're no longer the official owners they would lose some voting power likely, but the beneficiaries could be family members so the ownership would still be protected then we have charity this would apply to those with 1 billion in wealth or more. right around that 1 the $2 billion level, they would create a foundation, contribute some assets to bring them under the $1 billion threshold, get the tax deduction and avoid the annual tax and then there's staying private. this annual tax would only allow to marketability securities like stocks or bonds. closely held assets like private companies or property

and then william of douglas next year and frank murphy next year and robert jackson james burns next year and about the employees, they are just one after another. >> there was so many opportunities there was a compromise and they came to him, customers coming true believer but others, they came to him repeatedly with montana and with offers to compromise and he just would not have it in the state said in moving ahead and he wouldn't even recognize the reality of what is happening in his own allies were coming to him with stories of what was going on out there and now he was losing support and constituencies buried it was boneheaded on that antics extraordinary and again this is a timing and credit him and his exquisite sensitivity to political winds and he just was dead set on this. >> is a little parallel in this that i think that is maybe an explanation of that predict the attorney general was really the draftsman or the proponent of this and part of the problem on the supreme court was justie mcreynolds, one of the four horsemen, was an appointee, and then a wilson administration

douglas, frank murphy the next year, robert jackson and james burns the next year, and those eight roosevelt a appointees are just, you know, one after another in the wings starting in the summer of '37. >> and there were so many opportunities for him to compromise, and they came to him -- not so much cummings he was a true believer, his attorney general, but others came to him repeatedly with -- [inaudible] wheeler from montana, with offers to compromise, and he just wouldn't have it. i mean, he was dead set on moving ahead. you wouldn't even recognize the reality -- he wouldn't even recognize the reality of what was happening. his own allies were coming to him with stories of what was going on out there and how he was losing, you know, support in his constituencies. but he was very bullheaded in that, and it is extraordinary, again, with his sense of timing we created him with and his exquisite sensitivity to political winds, he just was dead set on this. >> there's a little kernel in in that i think is maybe an explanation of this. homer cummings, the attorney general, was really the draf

robert wood foundation. dr. morita, good morning. thanks for being here. >> good morning, trevor. >> to be frank, dr. morita, this is a time of a lot of health warnings, and we remember last year health officials were warning about the collision of covid and the flu, and then the flu season never really materialized, so why would this flu season be different? >> yeah, trevor, last year was a different year, we had an unusually low influenza season with very few people getting sick, very few people being hospitalized and very few people dying because of influenza. we can't necessarily assume that just because last year was like that that this year will be the same. influenza season is unpredictable as covid has been. it's really critical that we have effective tools for preventing influenza, that we have effective tools for preventing covid, and we need to take advantage of them. the vaccines is what i mean, really. >> does the fact that not a lot of people got infected with the flu in the past couple of years mean we don't have a lot of natural immunity. >> there's a potential for that. because we ha