tv On the Money CNBC September 30, 2017 5:30am-6:00am EDT
it would have to be somebody in the nba. narrator: if sold, a big chunk of change will go to charity, and the blinged-out basketball shoes will go down as the most expensive ever sold. ♪ hi, everyone welcome to on the money. i'm becky quick. there's no such thing as a free lunch unless you're a student in new york city's public schools everybody gets one is it a good idea? if you're buying a house, a trend that can save you cash. the president's tax plan what it might mean to you and will it pass. warren buffet's a real doll. literally? now a cartoon. you can get advice whenever you want "on the money" starts right now.
from learning the abcs to taking the s.a.t.s, many factors come together to help a child succeed, including one we may not think about too often, and that's food. some children would rather go hung fwri. what's the solution? that's our cover story. >> getting good grades can be challenging enough, let alone doing it on an empty stomach new york city is the largest school district in the country educating $1.1 million this child every student is eligible for free lunch. boston, chicago, dallas, detroit, chicago, and philadelphia have similar programs new york city school system. 75% of the school children were already eligible for free or reduced lunch. the criterion was an annual income of 37,000 jz for a family of three 1/3 of those kids who qualified
chose not to eat it gets worse as the children grow older advocates hope the new free lunch program will end the stigma supporters say this will help families save $300 a year. joining us now to talk about whether universal free lunch is the right approach is ben calos. he is a new york city council member welcome to both of you ben, why don't we start with you. this was a program you were in favor of and tell us about your experience, too. >> new york city is one of the wealthiest cities in the world and it's hard to imagine that we still have hunger. i wanted to take that on i grew up in the city. i went to a public high school, and i grew up on the upper east side i grew up with a single mom and we lived with my grandparents which made me a little bit different than a lot of the other kids from the upper east
side that were going to the bronx high school of science i came from a single parent household and multi-generational household which meant that i was eligible for free or reduced school lunch every day when it came towards lunchtime all the kids would go out and buy lunch and i had to choose between food and friends. i would go with the other kids, not buy lunch because i didn't have any money to buy it and i would tell them i wasn't hungry because the truth is i was starving >> so, jim, let's weigh in on this i'm not going to tell you to come out against free lunch, why do you think it's going too far? >> i like the school lunch program. the research we've done backs up research elsewhere it's a great program in fact, you know, i would like it to even be a better program i would like it to be a program that gave tastier, more
nutritious lunches to kids who need it. i think primarily a parent should pay and create lunches for their own kid. if they can't, that is a burden, i think they should be subsidized as you mentioned earlier, 75% of the kids in the new york school system already get a subdid i diezed lunch that is not a group that is in the minority that is most kids. i think that argues against the stigma argument. there are other ways to deal with that issue to the extent it is a stigma. >> such as what? >> try some things out in other places like san francisco. you give kids debit cards. every kid can punch a code into a system i want to focus on the kids who need it and make it better than them rather than expanding it to kids who don't need it. >> ben, would have that solved
the stigma for you >> no, that was something that folks did consider what we still ended up with is a lot of the management problems, administrative costs and when we looked at how much money we were spending trying to chase parents down for forms, managing a credit card type system, having a point of sale, having people doing that enforcement, when the federal government said if you have 75% of your city that qualifies, we will cover it for everyone. >> so the federal government is picking up the funds for this? >> absolutely. so it's fully covered. every single child will be treated the same no one will have to worry about whether or not their family can afford it. we will no longer have two lines, one line for kids on free and reduced and one line for kids who can pay we will give them an even start in life. >> jim, let's talk about that.
just the idea that we're going to get rid of the administrative and overhead costs any time you're trying to figure it out there's a decent argument for that. >> things like two lines, to me that sounds like a solvable problem. kids don't like to eat lunches there is a tremendous problem there with kids not eating these lunches. that is where the focus should be and making sure these are lunches that aren't being thrown out. i want kids to be well if he had, have nutritious lunches i just don't want kids who are eating two lunches, substituting the school lunch or breakfast in some cases for what they fet at ho -- get at home. make it better and use it for people who need it. >> ben >> we both agree about trying to make the school lunch better
if i was running for class president, i would be running on that, too. using the scientific method, having evidence-based governance this wasn't just rolled out willy-nilly. we tested it in grade schools. we saw an increase in uptake we rolled it out in middle schools and we saw an uptake now that we have rolled it out to everyone, i expect to see an uptake once we see the numbers, my full intent is to start focusing on school/food quality and environment and whatever types of economic nudges we can create to get kids to participate. >> the number was 31% of high school kids that are willing to go ahead it shows you the stigma attached. >> i was one of those high school kids. >> it will be interesting to watch how this plays out thank you for joining me. >> thanks a lot. now here's a look at what's making news as we head into a
new week "on the money oimpt ameri." the final reading of the gross domestic product, which is the broadest measure of the size and scope of the u.s. economy increased at an annual rate of 3.1% that is slightly above the previous number, 3%. stronger business spending led to the revision. s&p 500 hit a record high on early trading on friday. dow and nasdaq climbed on friday no escaping modern technology. dealta is offering free texting alaska airlines started offering free texting in january. "on the money," selling or buying a home? there's a new pricing plan that is gaining traction and could save you thousands later, big tax changes we'll get an early look at the numbers. right now a look at how the
may be in the driver's seat in today's real estate market, but that doesn't mean they are exempt from paying real estate agents what if there was a flat fee it's something people are betting is the wave of the future and the present diana olick reports on a sign of the times. >> reporter: the signs of everywhere competition is fierce for real estate agents. with the number of listings historically low, agents are doing all they can to lure sellers, and that means changing the business model >> for purple bricks, what's great about our model is it's new in the u.s.
>> reporter: london based purple bricks with $60 million in investor backing it is a flat fee brokerage charging $3200 to sell your home the traditional broker fee is 6% of the sale price. for a home that sells around $250,000 which is near the median sale price in the u.s., that means a commission of $15,000. >> i think what made it successful abroad and here in the u.s. is the true hybrid nature of the model. we use technology but we believe the real estate agent can be sound in the technology. >> it uses all of the technology, 3d home tours, appointment portals but there is a local agent working closely with each seller and purple bricks is enticing those agents offering them exclusive territories. >> we're going to assign you a group of territories as an agent, you own that market >> purple bricks is not alone.
really launched with a similar model in the san francisco bay area its flat fee is higher, just under $5,000 but home prices there are higher, too. really as the ceo says as it expands to other markets, it may lower that fee, but the model is still very new last year 2% were paid as a flat fee. >> getting paid $3200, they're not working for something. >> we would have thought about it, sure you'd look at a $6,000 commission versus 3200 you'd have to say what am i getting for that money. >> one thing is for sure, the longer of the supply of homes remains so very low, the more the competition among agents will increase and that could mean more models to save consumers money. >> you point out it's different in different areas san francisco, real estate starts higher. what happens when you get into
high end homes, $1 million or more cutting a $60,000 fee down to $6,000 $5,000 it seems hard to imagine you can cut it that much. >> i spoke to the ceos about that in california they're keeping that flat fee the same because of the varying prices of homes across california. they did say as they move out into other states where the median price of homes is far lower, california is the most expensive in the nation, they'll consider lowering that flat fee in order entice sellers. >> it seems ripe for problems. up next, we're "on the money." your tax bracket could be changing we'll look at how your tax bill and deductions could be different in the new gop tax plan. later, what if warren buffet could give your kids advice. the wisdom of warren where you might not expect it. it's not just a donation.
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president trump released the republican tax reform plan this week while short on details, the overhaul promises a simpler tax code and big tax cuts but for whom scott hodge is the president of the nonpartisan tax foundation scott, good to see you thank you for joining us. >> thank you. >> let's talk about this i know this is still pretty much the bare bones we don't flow every single detail it does talk about personal income tax rates being cut from seven brackets down to three 12%, 25%, 35%. probably also 0% falls in there,
too. is this a viable plan? >> it certainly is i think it's a step in the right direction. it's one that's more conducive to economic growth that's the key, getting the economy going again and the tax system is simply holding us back in so many different ways. >> how is -- i understand simpler by making it fewer tax brackets that you're talking about. how does this unleash tax growth a tax cut for more people? >> the big changes are on the corporate or business side of the tax code calling for reducing the top corporate rate from 35% to 20% and reducing the tax rate on smaller businesses, what we call pass-through businesses down to 25% our economic approach shows big cuts are the most pro growth you
can do they boost productivity and wages and that makes workers standard of living much better off in the long term. >> if we cut the tax rate though, are we going to be missing the revenue? will it have to be made up somewhere else >> they'll have to work to broaden the tax base eliminate the loopholes in the code, make some other modifications such as limiting the amount of interest companies can deduct from their taxes. all of that will help reduce the revenue loss but maybe not entirely. >> let's go back to personal taxes. what does it mean to me? what will i be paying? the plan as it's proposed eliminates all itemized deductions except for mortgage interest and will they be saving more money >> that's the balance here how far can we reduce tax rates
to make up for some of the deductions that we're going to lose at the bottom they're making big changes. standard deduction, zero sbrookt that a couple will not pay any income taxes up to $24,000 a year that's great even when you reduce some of the deductions that we get and lower rates, the combination of these things will make most people much better off. >> at the bottom of the scale and the top of the scale the people will be better off. i have heard grumbling particularly when you get to blue states, new york, new jersey, connecticut, california, those states where you. >> dewayne: duction for your state taxes, that's going away will people in middle income in those states pay more or less? >> it's possible some people who earn between 100 to $250,000 a year may be slightly worse off remember, they're paying very high property taxes, very high state taxes in those districts
it's possible that even by reducing tax rates and helping at the bottom with that zpeer bracket, that they may end up paying a slight increase in taxes. >> it will be interesting to see this move through congress thank you for joining us. >> you bet thank you. up next "on the money" a look at the news and the oracle of omaha. warr warren buffet with tips to help kids think likes entrepreneurs
here err the stories coming up that may impact your money this week. on monday we'll see how busy factories were in september with the ism manufacturing index. on tuesday, auto sales are released for the month on wednesday we'll be getting a read on the services sector with the ism non-manufacturing index. it marks the anniversary of t.a.r.p. that's the $700 billion plan looking for dinner ideas guess what, thursday is national taco day even though it's always been taco tuesdays in our house. on friday we'll see how many jobs were gained or lost billionaire investor warren buffet is quite a character. now he's also a cartoon character. >> it's always easier to look back at something you've done than to see what path you should take next. >> that's great. but we need some financial advise. >> that's from warren buffet's
"secret millionaire's club." andy hayward is the genius brand's chairman and ceo thank you for being here. >> thank you. >> how did you wind up in a kids cartoon? >> well, warren has always been concerned about teaching people, promoting financial literacy we went to warren and proposed to him that we would do a show together that would teach kids lessons about business and finance and he loved the idea. he wrote a curriculum. he records his own voices and we had a lot of fun doing it. >> what does the curriculum entail we're talking younger kids not necessarily high school kids. >> one of warren's favorite quotes is established. he felt it was important to start with young kids and teach them positive lessons and values about money. >> one of the dolls that goes along with it, yeah, the more you learn, the more you earn
>> the best investment you can make is an investment in yourself. >> what type of feedback do you get? >> the shows are all about positive values and we have conflict in prices, humor, jeopardy positive good story telling. they're competitive with any other cartoons that one would see. the idea of having a cartoon on this channel is all about content with a purpose, things that are positive value that is not another 1,000 empty calories but kids take something away from it. >> this is part of the broader channel on amazon where you can get a lot of other things. this is the kids genius channel. why partner with amazon? >> you couldn't get a better partner than amazon. we have a streaming service, a multi-year deal with amazon. we're in the 80 million plus amazon prime households that's being offered to them. the beauty of that is amazon is
on such a growth trip of its own. they'll be at 200 million subscribers forecast in three years. we'll be participating in that the channel has all kinds of things for kids. if you're interested in science, we have thomas edison's secret lab where a group of scientists have adventures in science if you have a toddler, we have baby genius. developmental values are put forward. you're a mom, you know it's hard to find shows that kids are getting something out of. >> as a mom you do get concerned about the amount of screen time. you're competing with television but also with the computer and all the games that are kind of pushed at them how do you say that this is one that's okay? >> well, we have an ethos around the channel. everything is of positive value. nothing of violence. no inappropriate language.
no negative stereotypes. there is no behavior you would be troubled by as a parent and there's no commercials. >> good time to be a content creator with all of these different ways of getting content out there? >> absolutely. we're very fortunate to have a.mazon as a partner it will start in 2019. excited about that. >> want to thank you for the time appreciate that. >> thank you, becky. >> my pleasure. >> that's the show for today i'm becky quick. thank you so much for joining us next week, the robot tax if a human worker is replaced by a robot, should there be a snacks have a great one. we'll see you next weekend my name is jeff sheldon, and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of ,
hey there, we're live at the nasdaq marketplace the guys are here getting ready behind me. here's what's coming up on the show. >> there's no place like home. there's no place like home >> there's no place like home. >> and there's no hotter trade than home improvement. and there's one stock flashing a major buy sign we'll break it down. plus, how would you like to buy shares of surging intel for less than a buck >> i'd buy that for a dollar. >> we'll show you how to do it for less and --