we have robert frank with more on the story good morning, robert >> good morning, frank 43 states provided tax relief which put tens of billions of dollars in the pockets of consumers. what happens when the tax checks run out? of the 43 states with some form of relief, 21cut income tax rates. iowa is one of the biggest cutting from 8.5% to a flat tax of 3.9%. big cut for them georgia going from top rate of 5.75% to flat tax of 4.99% a dozen states are considering new tax cuts just this year. connecticut governor lamon it is p-- lamont is pushing up o one percent. most of the tax cuts were one-offs like rebate checks or gas tack x holidays since they are not likely to be repeated this year, that tax windfall may fade. california would send out checks over $1,000 last year and now projecting a deficit of over $30 billion. frank, this was easy when states were getting hundreds of billions of federal aid. now the aid is running out and the question is what happens if is there a slowdown and the money that helped consumers so much starts to fade. >> huge swing for california sending a check to

." >>> coming up, robert frank weighs the millionaire migration as thousands look to flee the country>>> and michael jordan donating $10 million to make a wish for his 60th birthday. the largest gift ever received in the organization. jordan has supported make a wish since 1989 and named chief wish ambassador. >>> and mcdonald's has mcplant nuggets. you can try it later this week it is unclear if u.s. customers get a chance to take a tasty bite >>> a uk man pleaded guilty to stealing 200,000 cadbury creme eggs police don't waste a chance to fire off egg puns in the man's arrest they helped save easter from the atoustealer. wh wld he do sell them on the black market? "worldwide exchange" is back in a moment tomizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. ♪ ♪ a cyber-attack can grind

the rent in manhattan continues to break records robert frank is here to tell us how much it will costs are stupid >> especially, brian, after the record rents in manhattan last fall and summer. everyone expected they could start falling in january now that record may be the new normal in manhattan. the median rent hitting $4,100 a month. up 15% last year that marks the highest january for manhattan rents ever the average rent for a one bedroom is above $5,000 a month. more renters are actually paying it the number of new leases in january jumping 8% over december and 9% over last year. real estate brokers say new york's strong job market is helping to keep up demand. then we have low inventory which means you don't have a lot of choice the vacancy rate in manhattan is 2.5% that is below the typical average of 3%. corcoran saying the high prices are the new quote equilibrium i manhattan. the healthy buyers are staying in rentals until they see sale prices lower nearly 1 in 5 luxury rentals saw a bidding war in january brian. >> you know, you were at the top and i thought maybe i got wa

ta we have robert frank with that story.s >>> welcome back tax season gets under way and one is a thorn in the side of many the s.a.l.t. tax one group of americans found a way to make it disappear robert frank is here with more this is one you want to hear >> they do, frank. you are right. the $10,000 cap on state and local tax deductions does not expire until 2025. a growing number of taxpayers are getting around with a loophole the pass through entity tax. allows owners of pass through of s-corps to get a full and state deduction of the business tax. the biggest beneficiaries are private equity partners and lawyers and doctors and car dealers. critics say this is unfair and expensive. the policy center says taxpayers in new york and california have channelled $40 billion of income through the loophole daniel hemmel estimates the federal government will lose $50 billion of revenue by 2025 because of the loophole. with most benefits going to those earning $1 million of more of income. this practice is a scandal and the irs s

robert frank joins us with the latest robert >> well, david, this is taxpayers who own pass-throughsh entity tax. it pays an extra state tax, passes the deduction onto the owner. the biggest beneficiaries are hedge fund managers, private equity partners, lawyers, doctors, car dealers, and other business owners. critics say this is unfair and expensive since the benefits go to those making more than $1 million a year policy centers say taxpayers in new york and california have already channeled more than $40 billion through the loophole daniel hemal, a law professor at nyu, estimates the federal government will lose more than $50 billion in revenue just by 2025 he calls the practice a, quote, scandal and says the irs should make it illegal. quote, the biden administration notwithstanding its professed commitment to tax fairness has acquiesced in this massive giveaway to the rich new york city became the first municipality to off the entity tax. more states likely to join this year. >> i know a number of people who are benefiting from that, whether partners at law firms, as you say, or

robert frank has more on how the layoffs are bringing workers back to the office i noticed the journal piece saying the boss is back in charge >> certainly a little more in charge than they were before since the first time since the pandemic, a majority of the nation's office workers are back in the office. office use for the ten biggest cities hit 50.4% last week that's according to cassel there are still big differences between cities, though austin, texas, you have 68% of the workers back in san jose, back there in tech land, it's only 41%. new york now at 48%. the actual number, though, could be even higher a survey of new york's biggest employers by partnership for new york city found that 52% of manhattan office workers are back for most companies that means three days a week, only 9% of new york employers are mandating five days a week back in the office they say the new normal for manhattan occupancy will be around 56% so, that's where it may level off. now, the industries with the highest office rates in new york are real estate, finance and law. tech among the lowest. though

thanks very much appreciate it, robert frank. >>> to contessa brewer for a cnbc update. >> happening now thousands of rescuers in turkey and syria frantically searching for survivors from two massive ea earthquakes. officials expect both numbers of deaths and injuries to rise. turkey's president declared seven days of national mourning. >>> in ohio officials plan control release of toxic chemicals s s from five cars o train that derailed reducing risk of explosion. release begins 3:30 eastern time and lasts we're told between one to three hours. >>> in minnesota an explosion tore a home in half. three people pulled the wreckage rushed to the hospital one of them by hospital. no word yet on their condition the house appears to have been under construction and then the garage section ripped away from rest of the house. that's also terrifying. >> yeah. >> kelly >> contessa brewer. >>> ahead on "power lunch" might be 99 red balloons only one went by the u.s u.s. and china tensions reaching new highs after the white house shot down the suspected spy balloon. discuss political and geopolit

and bring in robert frank for more on that robert, how are things looking office wise? we know people are getting back to work. >> you want downward pressure, here it is new york office still stuck at the new normal of under 50%. the latest occupancy at 49%. tuesdays are the peak day when about 60% occupied, friday is -- fridays are the new saturdays at 25% office leases in manhattan falling 47% in the fourth quarter. that's the biggest drop since the start of the pandemic. there's over 100 million square feet of empty space in manhattan. that's up 70% from pre-covid the defaults we're seeing those now, a default on a $54 million loan for a partnership they're part of backed by fifth avenue r retail space in miami, a new office tower there just had a new lease at $100 a square foot that's the same as some of the offices in manhattan >> wow 25% occupancy on fridays let's focus on robert's bigger picture point. do you see more pain ahead for commercial office buildings? >> i do. new york we're seeing the beginning. new york, san francisco, los angeles, washington d.c., th

the median rent now topping $4,000 robert frank here to discuss $4,000 is the median >> that's the median average. >> what size apartment >> well, that's the average apartment. the average for a one bedroom is over $4,200. the average citywide is over $5,000 what is interesting about january is we had these record highs in october, november, but everyone said, well, come january, things will come down because nationally things are coming down. new york is not budging. and in fact we had the highest median rents in january of any january on record. seasonally, this is supposed to be a very weak time. and in fact we had a large increase not just in rents, but in the number of people signing new leases that was way up, not just over december, but way up year over year and so the question is, where are all these people coming from new york did increase its population since the pandemic. so more people live here today than prepandemic you wouldn't know that by reading the headlines. maybe return to office, now that people have to be back in the office, they want to live in the city the real is

us now with more robert, how big of a jump are we talking? >> frank, this is a meaningful milestone. half of the nation's office workers are back in the office on the average weekday office use for the ten biggest cities hit 50.4% last week the first time that it passed the magic 50% mark since the pandemic there are big differences. austin, texas is at the top at 68%. san jose at the bottom at 41%. new york is now at 48% the actual number could be higher the survey of new york's biggest employers for the partnership of new york found 52% of manhattan office workers are now back. only 10% are fully remote. that is down from 16% this fall. most of the new york office workers are in at least three days a week now. the new normal for new york, say employers, is 56% of office workers back the industries with the highest office rates are real estate, finance and law. tech is among the lowest la labor experts say it is driving more back to the office and ceos are cracking down. starbucks are saying if you can be back in the office, be back three days a week

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ed ellington: first question, frank? robert f. kennedy: if you say it, then we can repeat the question. frank thackston: mr. kennedy, who, in your opini, is the person primarily responsible for the ole miss riots, a why? ed ellington: the question was, in your onion, who was the person primarily responsible for the ole miss riots and why? [laughter] [music playing] [film reel] speaker 6: oxford is a town with a population of 5,200, spread in the rolling fir- and pine-covered hil of north mississippi. ole miss haseen at oxford for 114 years and is more noted r thbeauty of its women and the strength of its football tea rather than for high academic standards. but 29-year-old james redith married the father of a little girl who wanted tattend ole miss. speaker 7: studio. hagan thompson: this is gan ompson athe state fice building in jackson. james meredith has just arrived and is apparently making his way up to the 10th floor to register. [jeering] and the national press view this as the most critical time in its 114-year history. spe

of focus on the consumer and their durability can they keep supporting the economy these days robert frankwith a look at one reason consumers have extra spending power now states are cutting taxes and the fed shouted it out yesterday. >> the fed did it was in the minutes. the states have so much surplus money they're giving it back to consumers. that's been a huge tailwind and underappreciated for why consumers are holding up 43 states have passed some form of tax relief, in the form of gas tax holiday, grocery tax holidays some of them are one offs but a lot of them are rate cuts. some states looking to eliminate the entire tax rates this year, mississippi and arkansas looking to go the way of florida and texas -- >> permanently >> permanently phased in over time but permanently. there's this race to the bottom, it's tax cut fever putting tens of billions of dollars in the pockets. it's a tailwind for consumers that may continue in part as long as the state fiscal situations hold up that's the question. >> is it making it harder for the fed to do its job? >> a little bit. >> you have that

welcome back layoffs have shifted more power to employers, and they want workers back in the office robert franknow with a look at how that is shifting the real estate land scape robert >> reporter: dom, you are leading by example you are in that office five days a week, inspiring all the rest of us, and the closes of starbucks, disney and other companies are saying be more like dom, get back to the office more, and the workers are listening. for the first time since the pandemic, a majority of office employees in the ten biggest cities are now back in the office office use now at 50.4%, so just a slim majority there. it does vary by city in austin, texas, 68% of workers are back in san jose, california, still only 41% you look at new york, we're at 48%. and amongployers in new york, it could be higher a survey by the partnership for new york city found that 52% of office workers are now back. for most workers, that means three days a week. only 10% are fully remote now. that's down from 16% in the fall employers say the new normal for manhattan office space will be 56%. so we may not get much b

joining us now to discuss, cnbc's robert frank, and i mean, robert, those states i just mentioned are are already suffering about migration, have already struggled to keep wealthier residents in-house i suppose it's not an automatic easy trade to say they're going to get that revenue. >> you're right. that's why i think it's important for investors to really keep an eye on this, because even though it's not imminent, certainly at the federal level, as you mentioned, probably not even at the state level, the democratic party certainly wing of the democratic party is just captivated by this idea of taxing wealth and now taxing unrealized gains, so you have proposals in california to tax wealth over $50 million. in new york, you've got a proposal to tax all unrealized capital gains over a billion dollars, and a lot of those unrealized gains are stock, so if you own a lot of apple stock and it went up during the year, even though you didn't sell any, they would like to tax that. these states, as i said, some of the governors are going to oppose it so it doesn't necessarily mean it's going

robert frank with the story. >> it has been tax cut fever in the state capitals 43 states have providedthose 43 states, 21 have cut their income tax rate. iowa cutting its biggest from 8.5% to 3.9% georgia going from 5.75% to 4.99%. a dozen states are considering tax cuts this year connecticut governor ned lamont is pushing the biggest ever tax cut, $600 million, cutting rates for those making less than $100,000 mississippi and arkansas considering plans to eliminate their income tax all together. the federal reserve saying in its minutes released just yesterday, quote, participants noted that some states could return part of their sizeable budget surpluses to households through tax cuts or rebates, which would provide support to consumption. david, of course, the big question is what happens if this economy slows? then we have a decline in tax revenue. it's already happening in california california, which had sent checks of $1,000 each to people last year, is now projecting a deaf deficit of over $30 billion. new york and california the exceptions here. everywhere else is cutting, giv

louie vuitton is tapping the music star pharrell williams as the brand's next men's wear de design robert frankabout this >> shareholders are clapping along. the stock is up 21% this year. and that makes the riches ft ma of the world over $200 billion and their strategy is to become a culture company. so they are partnering with musicians, with artists, where treat wear designers to not just create stdesigns but cultural moments. so louie vuitton just the label itself has doubled sales over the past four years from $10 billion to $20 billion last year and their previous minute's designer chief passed around last year and pharrell will be replacing him. and you look at the designs, the sneakers that he did with lmvh, those sneakers have auctioned or sold for over $350,000 a pair. so literally pharrell has some big shoes to fill here but he also has a great history of designing himself >> well, i guess the question is, do we have a great history of celebrity partnerships. because the last couple weeks we've seen problems at adidas, even reports that at salesforce celebrities had too much influenc

robert frank takes a look at that story next. >>> and later, the cfo of fintech company block on thew pay later service industry and much more. >>> and a reminder for you, you can get the best of "squawk box" in our daily podcast, just follow squawk pod on your favoriteodst pca app and you can listen anytime we'll be right back. atter your , at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >>> welcome back the futures the dow up 131 pointings, s&p 500 up 18, 19 points nasdaq up 72 points. we've got a programming note tomorrow morning we're going to

>> robert frank, all right >> we're going to continue this conversation now our next guest has a fronthaimer, cochair of the problem solvers caucus, and the solve caucus you're like on the court, congressman. what's really going to happen here the honest truth >> on the debt ceiling or are we going to -- i'll discuss whatever you said. >> we can talk about -- i was going to start with the debt ceiling, but we can talk about whether you think s.a.l.t. is even realistic you've been talking about it, what, how many years now six years? five years >> listen, we passed it three times out of the house i've got to get the guys in the senate to actually come through here >> what do you think are the chances? what do you have to do >> in 2 1/2 years, it all comes back, a full deduction back here in jersey and across the country. the republicans obviously, and some in the red states will want to stop that so it puts us in a great opportunity right now to negotiate to get it back now, or we wait 2 1/2 years to get it back fully we've started to have conversations, you know. >> what about the inev

robert frank joins us right now with more. and, robert, this is pretty interesting.tates to lower tax states this sounds lukes like a reallyd way to keep pushing those policies. >> yeah, exactly this would sort of turbocharge that migration and they're calling it fund our future it is a coalition of lawmakers from eight states all getting together to push for wealth taxes on a state level new york, california, illinois, hawaii, they're among thestate advancing bills to tax wealth along with income. in washington state, the proposal is for an annual 1% tax on wealth over $250 million. in california, it is a 1% tax on wealth over $50 million. and 1.5% on wealth over $1 billion. new york has multiple bills. one is calling for taxing unrealized capital gains for those worth more than a billion dollars. then you've got another tax that would impose an extra fee on capital gains that would bring the combined city, state and federal capital gains tax to over 50% now, lots of these bills face pushback from the state governors, connecticut governor ned lamont wants to cut tax

robert frank joins us next on what is driving the in-office push i have a guess bosses. >>> and a bigt pebble beach executives from delta airlines and chevron and waste management and at&t "squawbo wk x"ill be right back. jimmy dunne will be here, too. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. (♪ ♪) how do we demonstrate our helunmovable strength?ades (eagle call) nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh... not lions. (lion rumbles) we do it with our people. people who've been looking after people for over 170 years. ♪ ♪ a cyber-attack can grind everything to a halt. cisco security keeps your company moving forward. because if it's connected, it's protected. cisco. >>> well come ba

robert frank has more with the wealth migrating out of china. s an increase in chinese wealth flight. the number of chinese asking for migration spiked 600% in the three weeks after china lifted the lockdowns. that is according to the advisory firm henley and partners last year, 11,000 chinese m millionaires left the country. this year, the number is expected to be even higher >> vast majority of clients are looking for plan b but now it is plan b and plan c and plan d what we see is a lot of them looking to develop a portfolio or at least geographical diversity in terms of where family can go. >> capital flight could be even larger the chinese wealthy expected to move more than $150 billion out of the country just this year. there are growing concerns of the chinese economy and the government, those are the main reasons. president's xi crackdown on tech and real estate and the common prosperity campaign against big wealth officealso creating new threats. the favorite destination for wealthy moving in europe portugal and greece topping the list a

robert frank, thank you.tion and more, joe, with someone who knows something about taxes. >> joining us now on what congress intended to do with the salt cap and whether congress will review state workarounds, former u.s. congressman kevin brady. he served as the lead republican on the ways and means committee. and congressman, it's good to see you. this really benefits even a higher level of income earner than i think of with salt, and i don't know -- you're from texas. i think that the idea was that states that were viewed as profligate in their spending, that they shouldn't be able to have their constituents, you know, sort of enable the legislatures to overspend by being able to deduct it. but then when josh gottheimer and other people want to get rid of the salt, it's, you know, he's supposedly a democrat it's just rich people are the ones who benefit from getting rid of the caps, right now in this case it's the super rich that are able to get around it that can't be something you are supporting >> yes,

robert frank is here to explain all that robert, good morning. >> good morning, becky the president gettingwants to make sure that billionaires no longer pay lower rate than teachers or firefighters in practice, however, this is a 20% tax on all unrealized gains, those worth more than $100 million. so, anyone with total assets of $100 million would pay a taxon annual gains on their stocks, bonds, private business, and their real estate. if a tech entrepreneur has stock worth, say, a billion dollars, they would pay a one time tax of $200 million on that billion dollars in stock, and then a 20% tax every year on any gain after that. so if it goes to $1.5. the next year, they would fpay $100 million minimum tax if that declines they get a credit since taxpayers have five years to pay this tax, they could smooth out the payments and credits over volatile markets. all the tax is paid on unrealized gains would be deducted from the capital gains once it is eventually sold and if you look at illiquid assets, private companies, real estate, you could delay the payment until death, though they would

frank did. >> reporter: robert kennedy jr. eventually apologized.e. >> you know, we can look back at a time in history where people were told to wear a gold star. they were put in trains and taken to gas chambers. >> the use of the holocaust, people walking around with yellow stars or yellow masks or things like that to compare to covid is a form of holocaust distortion. it's degrading of history. >> reporter: when we come back, a new, growing form of antisemitism from the political left . or are allergic to it. serious allergic reactions and low blood calcium have occurred. tell your doctor about jaw bone problems, as they have been reported with evenity®. or about pain in your hip, groin or thigh, as unusual thigh bone fractures have occurred. don't let a break put you on a shelf. talk to your doctor about building new bone with evenity®! get refunds.com powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i w

robert de lee held a strategic initiative in the eastern theater until may 4th, 1864. it is now frank pointed it out. you can look at joe coker and the four days or so his union opponent might have had step on in the army. norfolk, virginia. but as a rule, does not lee dictate the contours of a campaign and he really does. but this changes when grant crosses a river with the army of potomac. so by june 12th, 1864, the overland campaign is over. lee is there cold harbor? he doesn't know. but the initial step is being taken in the crossing the james river. he had said to one subordinate before that. if it ever becomes a siege, we're doomed. and then he received word david horner with another federal army is moving in lynchburg and. lynchburg, in turn could not be seized by the federals because it is a vital crossroads. surprisingly i guess, if you think about it, how was surprise? what was braxton bragg, who i never thought had a good thought his mind anyhow, he comes up with he writes to he's now davis, his military advisor, and he writes to davis, you know, we have to address this iss

caller: investing for the long term -- >> as wonderful frank said, the forecast is the forecast i like snow flake. he is a moneymaker let's go to roberton. question z scaler ticker symbol -- >> the stock is all the way down it can bounce. ford reported an amazing quarter tonight. people will take that for three days and you might have to go. all the stocks are coming back right now. let's go to sam in colorado. sam? >> caller: the question is about world class companies out there, they reported today alumna. >> they missed again if you're going to be in the business, there is only two. there is thermo fisher and cramer fav danner but i like thermo fisher. pulled down by alumna tomorrow and when it happens, let's go to michelle in new york, michelle >> caller: hi, jim it's michelle from texas. >> oh, fantastic what's happening >> caller: nothing much. just surviving the huge winter storm that came through. >> excellent >> caller: jim, my question today is about sun. >> look, i like the limited partnerships but i am going to send you to -- i would rather see you in oh my god i'm going to recommend -- i can't believe it e.t. yes, energy