Internet Blackout in Iran & Protests in Minneapolis 1/9/26

Summary

Squawk Pod Podcast Summary

Episode: Internet Blackout in Iran & Protests in Minneapolis
Date: January 9, 2026
Hosts: Joe Kernen, Becky Quick, Andrew Ross Sorkin
Key Guests: Senator Bill Haggerty (R-TN), San Jose Mayor Matt Mahan

---

Episode Overview

This episode of Squawk Pod examines three major issues shaping U.S. and global headlines:

1. Mass protests in Iran and an ensuing government-imposed internet blackout, with U.S. political responses in focus.
2. Protests in Minneapolis following the fatal ICE shooting of U.S. citizen Renee Good, and a debate over U.S. immigration enforcement.
3. The proposed California state wealth tax, with major pushback from Silicon Valley leaders, featuring an in-depth interview with San Jose Mayor Matt Mahan.

The panel blends on-the-ground reporting, live policy analysis, and spirited debate, drawing out political, economic, and social ramifications.

---

Key Discussion Points & Insights

1. Iranian Protests and Internet Blackout

[01:29 – 05:21]

• Backdrop: Iranian authorities have blocked internet and phone access across over 100 cities amid widespread anti-government protests, violent crackdowns, and mounting casualties.
• International Response: President Trump publicly threatens U.S. intervention if crackdowns worsen.
• Backdrop of Propaganda: Iranian authorities blame foreign interference, echoing past "Great Satan" narratives against the U.S.
• Causes: Sparked by extreme inflation and a severe crash in Iran’s currency against the U.S. dollar.

Notable Quote:

• "The only cameras on the street are from the government, but there are casualties... reportedly as many as 47 people." – Andrew Ross Sorkin (04:09)

• "This is the playbook. Not recognizing the desperation..." – Becky Quick (05:21)

• "It's their business, but I think it'd be good for the world, and for the Iranian people." – Andrew Ross Sorkin (05:23)

---

2. Protests and Immigration Enforcement in Minneapolis

[01:02, 10:37 – 24:29]

ICE Shooting in Minneapolis

• Incident: ICE agent fatally shoots Renee Good, a U.S. citizen, triggering a wave of protests.
• Political Fallout: Debate arises over immigration enforcement, public safety, and the optics of ICE’s tactics.

Senator Bill Haggerty Interview

[10:37 – 25:01]

• Elections & Midterm Politics

  • Congress is in a tense “game of back and forth.” Procedural votes see Republicans crossing sides, e.g., on Venezuelan policy and Obamacare subsidy extensions.
  • “Not unusual” for lawmakers to break ranks ahead of midterms, often for local political reasons.
  • Haggerty does not believe President Trump’s influence over Republicans is waning.

  Quote:

  • "The support for President Trump is as strong as you'd have ever seen." – Senator Bill Haggerty (14:50)

• Obamacare Subsidy Fraud

  • Haggerty claims “tremendous” fraud in zero-premium plans.
  • Suggests introducing even minimal monthly payments ($5) to ensure people know they’re enrolled, alleging brokers enroll unaware individuals for commission.
  • Example: “Rate of escalation of insurance premiums under Obamacare since 2014: 260% increase” (13:40).

  Quote:

  • "We're trying to eliminate the fraud. The program is clearly broken." – Senator Bill Haggerty (09:06, 13:07)

• ICE Tactics & Public Backlash

  • Sorkin presses on public discomfort with masked, unmarked ICE agents. Haggerty supports measures necessary for enforcement and agent safety.
  • Heated discussion about doxxing and safety: “I support whatever it takes to get these people that shouldn't be here out of our country, period, full stop.” (18:36)
  • Haggerty: “The greater tragedy... is when elected leaders and crime encourage non-cooperation with federal authorities.” (16:39)
  • The panel agrees the unprecedented visuals of ICE actions have fueled protests.

• Accusations of Political Motive

  • Haggerty suggests a political strategy to “backfill” U.S. population counts with undocumented immigrants, benefiting blue state representation.
  • Sorkin acknowledges the significant volume of new arrivals under Biden and the resulting tension in existing systems.

  Quote:

  • "It's a backfill. It's the biggest backfill ever to basically count these people and give disproportionate voting power to states like California, states like New York." – Senator Bill Haggerty (21:18)

---

3. California Wealth Tax Debate

[02:05, 25:06 – 36:58]

Interview with San Jose Mayor Matt Mahan

[27:43 – 36:58]

• Innovation & Economic Migration:

  • Mayor Mahan warns that a new wealth tax could backfire, hastening billionaire departures (“capital flight”) and ultimately harming middle-class taxpayers and the state’s innovation ecosystem.
  • Notes recent high-profile departures (e.g., Larry Page).
  • "I'm worried that the unintended consequences of this proposed wealth tax could be devastating for our innovation economy here in Silicon Valley." – Matt Mahan (25:22, 27:43)

• Policy Alternatives:

  • Advocates for closing loopholes and tackling government waste/fraud before raising taxes further.
  • Points out that the richest 1% already provide 40% of California’s income tax revenue.

  Quote:

  • "I think we ought to ask government to do better before we ask taxpayers to pay more." – Matt Mahan (30:46)

• Broader Socio-Economic Issues:

  • Mahan stresses that economic pain and cost-of-living worries are driving calls for steep taxes, not "billionaire envy."
  • Recommends targeting issues like housing and infrastructure, not disincentivizing job and wealth creators.

• Technical Concerns:

  • Questions around potential retroactivity of the tax for those who already left the state (Peter Thiel, Larry Page).
  • Mahan: The uncertainty alone has triggered a preemptive exodus.

  Quote:

  • "That very kind of uncertainty is destructive already." – Matt Mahan (33:59)

• Closing Loopholes:

  • Panel discusses tax avoidance via loans against stock and the need for federal solutions.
  • Mahan supports closing loopholes that let billionaires avoid ever realizing taxable gains.

  Quote:

  • "You shouldn't be able to indefinitely borrow against your unrealized gains as a way of avoiding ever paying taxes." – Matt Mahan (35:55)

---

Memorable Quotes & Moments with Timestamps

• On Iran’s crackdown and foreign perceptions:

  • "It's all about, you know, the Great Satan. And the Great Satan is involved..." – Joe Kernan (04:09)

• On the divisive ICE tactics:

  • Andrew: "Do you believe that agents that are oftentimes unmarked, wearing masks... that's something that you support?"
  • Haggerty: "I support whatever it takes to get these people that shouldn't be here out of our country." (18:18–18:36)

• On the wealth tax’s local consequences:

  • "The top 1% of income earners generate 40% of the income tax revenue in California already." – Matt Mahan (30:46)

• On billionaire departures and public envy:

  • Andrew Ross Sorkin: "I think billionaire envy is misplaced and stupid... If there was any group... to help with wealth inequality, it's job creators..." (31:18–32:21)

• On fraud and inefficiency in government:

  • "Credible sources estimate we've had 20 to 30 billion dollars in fraudulent unemployment claims." – Matt Mahan (30:29)

• On federal versus state approaches to closing loopholes:

  • "I think it has to be closed at a federal level. And I encourage Congressman Khanna to focus on that..." – Matt Mahan (35:55)

---

Important Timestamps

• 01:02 — Minneapolis ICE shooting & protests intro
• 01:29–05:32 — Iran: protests, blackout, international reaction
• 10:37–25:01 — Extended interview: Senator Bill Haggerty on Congress, immigration, ICE, politics
• 27:43–36:58 — Extended interview: Mayor Matt Mahan on California’s proposed wealth tax

---

Summary Table: Major Themes

| Segment | Topic | Key Points | |--------------------------|----------------------------------------------|---------------------------------------------------------------------------------------| | [01:02, 10:37–25:01] | Minneapolis, ICE, Immigration Policy | ICE shooting fallout, enforcement debate, fraud concerns, political implications | | [01:29–05:32] | Iran Protests & Internet Blackout | Widespread unrest, government crackdown, US warning, currency collapse | | [27:43–36:58] | California Wealth Tax Debate | Tech exodus, innovation risk, policy alternatives, tax loopholes, government waste |

---

Conclusion

This episode delivers a high-energy, multi-pronged discussion of pressing news at the intersection of U.S. domestic politics, social justice, and global affairs:

• The Iranian protest movement and global responses underscore the complexity of foreign policy and media control.
• Minneapolis’s protests and ICE enforcement reveal deep divides on immigration, policing, and public trust in authority.
• The California wealth tax debate highlights fault lines between progressive policy and concerns about economic competitiveness.

The hosts and guests maintain a lively, sometimes heated tone, continuously probing for policy nuance and real-world impacts—with memorable moments, sharp questioning, and an acute awareness of the 2026 election year climate.

Transcript

[Comcast Business Announcer]

Comcast Business helps retailers become seamlessly restocking, frictionless paying favorite shopping destinations. It's how nationwide restaurants become touchscreen ordering, quick serving eateries and how hospitals become the patient scanning data, managing healthcare facilities that we all depend on. With leading networking and connectivity, advanced cybersecurity and expert partnership, Comcast Business is powering the engine of modern business powering possibilities. Restrictions apply.

[Schwab Market Update Host Keith Lansford]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] Market Update podcast or find Schwab Market Update wherever you get your podcasts.

[Becky Quick]

Bring in show music please.

[Joe Kernan]

This is Squawk Pod and I'm CNBC producer Cameron Acosta on today's episode. In Minneapolis, protesters are in the streets after an ICE officer shot and killed U.S. citizen Renee Good. Republican Senator Bill Haggerty responds to the resulting questions about immigration enforcement around the country.

[Senator Bill Haggerty]

I support whatever it takes to get these people that shouldn't be here out of our country. Period. Full stop.

[Joe Kernan]

And in Iran, the government has restricted Internet and phone access as thousands of protesters there have taken to the streets across 100 cities. President Trump has threatened intervention as the Iranian government cracks down on its population.

[Andrew Ross Sorkin]

It's their business, but I think it'd be good for the world and for.

[Becky Quick (or possibly another host, but likely Becky Quick)]

The Middle east, for the Iranian people.

[Joe Kernan]

Plus, California's wealth tax debate is in national headlines. Billionaires are sparring with lawmakers and there's a growing wealth gap. San Jose Mayor Matt Mahan on the taxes his city relies on.

[Becky Quick]

Ironically, I think this may ultimately push the burden onto working and middle class families as this proposed tax generates capital flight.

[Joe Kernan]

Why he opposes the proposal alongside many tech leaders in the state.

[Becky Quick]

I think we ought to ask government to do better before we ask taxpayers to pay more.

[Joe Kernan]

It's Friday, January 9, 2026, and Squawk Pod begins right now.

[Andrew Ross Sorkin]

Stand best you buy in three, two, one.

[Senator Bill Haggerty]

Fuel, please.

[Becky Quick (or possibly another host, but likely Becky Quick)]

Good morning, everybody. Welcome to Squawk Box right here on cnbc. We are live from the NASDAQ market site in Times Square. Becky Quick along with Joe Kernan and Andrew Ross Sorkin. And on this Friday morning, yay. Friday, Friday, Friday. Couldn't get here fast enough this week.

[Andrew Ross Sorkin]

And then there's Venezuela. President Trump says that there won't be a second wave of attacks on Venezuela following the US Operation to Seize Maduro. Last weekend, in an early morning post on Truth Social, the president said another attack and his words looks like it won't be needed, but that US Ships around Venezuela will stay in place for security purposes. He also said large oil companies will invest at least $100 billion in the country. Marathon Petroleum told Reuters it's interested in bidding for Venezuela's oil. Chevron, two global trading houses and other firms are reportedly competing for deals to export Venezuelan crude. I'm just looking. I looked through the rundown. I don't think we're going to talk about Iran right now, but, man, oh, man, we will talk about it throughout the show. And there's, you know, it's hard to get exact information out of there. The only cameras on the street are, you know, from the government, but there are casualties. The regime finally admitted that. That's reportedly as many as 47 people. We have said that. And thousands may be injured. But it's been pointed out that they can be brutal to put down these. Oh, it looks like we are gonna use showers. What's crazy. And I've read some comments from Khamenei and others that you're ruining your own streets to try to satisfy Trump. So, I mean, it's all about, you know, the Great Satan. And the Great Satan is involved with what's, you know, it's not this organic move by the people of Iran. It's all we've got people in there supposedly, you know, stirring things up. Meanwhile, we are going to talk about Iran. Restricted Internet and phone access Overnight, thousands of protesters appearing to take the streets across the country in as many as 100 cities, reports say, follows this violent crackdown by the country's security forces that left dozens dead. The protests, sparked in part by soaring inflation and the collapse of Iran's currency versus the US Dollar this week. And then yesterday, President Trump repeated his warning that the US Would intervene if more protesters are killed. On state television, Iran's Supreme Leader, Ayatollah Ali Khamenei, referred to President Trump saying protesters are, in his words, ruining their own streets to make the president of another country happy. This is. This is the playbook.

[Becky Quick (or possibly another host, but likely Becky Quick)]

Not recognizing the desperation that comes.

[Andrew Ross Sorkin]

This has been a playbook in the past, but I'll gone it. I hope this is, you know, it's their business, but I think it'd be good for the world and, and for.

[Becky Quick (or possibly another host, but likely Becky Quick)]

The Middle east, for the Iranian people.

[Andrew Ross Sorkin]

And for the Iranian people.

Meantime, Johnson. Johnson reaching a deal with the Trump administration to cut drug prices for Americans in exchange for exemptions from US Tariffs. Now, in December, the administration reached agreements with nine other major pharma companies to cut drug prices for Medicaid and self pay patients. Specific terms of the JJ agreement, including updated prices on specific drugs not covered or I say covered, were not disclosed. So we don't know just yet. Johnson Johnson also said it will build two new manufacturing facilities in North Carolina and Pennsylvania as part of a $55 billion US investment plan announced. Already though last year.

Shares of Glencore jumping on news that a possible $260 billion merger with Rio Tinto is back on the table. That's got to be combined market caps, right? Yeah. Come on. Do we just throw it around like. Like it happens every day? $260 billion. Has there ever been a 260. An actual $260 billion merger?

[Becky Quick (or possibly another host, but likely Becky Quick)]

Rio is 100.

[Andrew Ross Sorkin]

Think about that.

I still believe that the largest merger in history was the hostile transaction that Vodafone pursued of Manusman in the year 19.

That's not what I want to come.

Up with for $183 billion based on, I believe $183 billion. And that was an actual.

That was on the tip of my. That was on the tip of my tongue. Vodafone. Manusman.

[Becky Quick (or possibly another host, but likely Becky Quick)]

Very good. Very good statistic.

[Andrew Ross Sorkin]

There you go. A little history. I was covering that deal back in the day.

See M and A. I'm just going to make the point that if you're there when something happens, it helps later in your life to be able to call back and draw upon things that happened. Wisdom comes from this in the past and that each year you actually can become even until you start slipping. But you can become actually. But good. Thank you. What was Time Warner that was big at the time?

It was about 100 something.

That was a big one.

Yeah.

This is not 260 billion. Right. We figured out it's one or the other. We can't add them together and then they throw in debt and next thing you know we're at a trillion dollar.

Merger At a certain point when it was first announced, but they didn't pay it. It was supposed to be $165 billion.

For one or the other. Oh, for Time Warner.

Yeah.

[Becky Quick (or possibly another host, but likely Becky Quick)]

I'm just looking at that too. $182 billion if you include debt.

[Andrew Ross Sorkin]

AOL, you've got mail that they were supposedly going to. Their stock was going to be enough to buy Time Warner. We thought that at the time. That's strange.

[Becky Quick (or possibly another host, but likely Becky Quick)]

Make you wonder if anything else is over influenced.

[Andrew Ross Sorkin]

Overpriced dogs for overpriced cats. Anyway, this deal would create the world's largest. We digress. The world's largest mining company. Glencore and Rio Tinto both own significant copper assets. They talked about merging in late 2024. Those talks collapsed over issues like valuation and the future of Glencore's coal mines.

[Becky Quick]

Teas will be next.

[Joe Kernan]

Coming up on Squawk Pod. It's an election year again. We are months out from the 2026 midterms, but the business of Congress this year is very much a game of back and forth. Republican Senator Bill Haggerty joins us on two key votes in Washington yesterday and Republicans crossing sides to challenge the president on war powers in Venezuela and extending the Obamacare insurance subsidies. When it comes to health care, Haggerty says there is real work to do.

[Senator Bill Haggerty]

We're trying to eliminate the fraud. The program is clearly broken.

[Comcast Business Announcer]

Comcast business helps retailers become seamlessly restocking, frictionless paying favorite shopping destinations. It's how nationwide restaurants become touchscreen ordering, quick serving eateries and how hospitals become the patient scanning data managing healthcare facilities that we all depend on. With leading networking and connectivity, advanced cybersecurity and expert partnership, Comcast business is powering the engine of modern business, powering possibilities.

[Fidelity Trader Plus Announcer]

Restriction supply Introducing Fidelity Trader plus with customizable tools and charts you can access across all your devices, try our most powerful trading platform [e-mail] TraderPlus investing involves risk, including risk of loss. Fidelity Brokerage Services LLC Member NYSE SIPC.

[Capella University Announcer]

Member Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals like business management, strategic planning and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn [e-mail].

[Joe Kernan]

You'Re listening to Squawkpod. Here's Joe Kernan.

[Andrew Ross Sorkin]

Stand by Joe in 3, 2, 1.

His Mic Q Senate agenda has started the year off with Venezuela healthcare and affordability. Join us now. Senator Bill Haggerty and just talking off camera about things yesterday the president got pretty angry that I think four senators on the Venezuela bill. What did that Venezuela bill really mean for our our policy or the president's policy? It doesn't have teeth.

[Senator Bill Haggerty]

It doesn't have an immediate impact because it was a procedural vote to actually move to a discussion and debate on this next week. And that's what's going to happen. Senator Fetterman, for example, said he was going to support the procedural move, but he oh really will not vote to support.

[Andrew Ross Sorkin]

I think there are four.

[Senator Bill Haggerty]

So and there are a few Republicans. This isn't an unusual situation, particularly coming into midterm elections where you have senators that are in tough situations. I'm not going to try to judge what my colleagues motivations on both sides of the aisle.

[Andrew Ross Sorkin]

It's crazy stuff.

[Senator Bill Haggerty]

But this is not a time where it's unusual to see, you know, an elected official break.

[Andrew Ross Sorkin]

They know if something's safe. A lot of times though, for their own local political situation, they'll go the other way knowing it doesn't make a difference. It's all kabuki theater sometimes. What about the we did see how many 17 Republicans voted with Democrats yesterday on the subsidies.

[Becky Quick (or possibly another host, but likely Becky Quick)]

In the House.

[Senator Bill Haggerty]

In the House. In the House again, it's the same situation. That same bill in concept was put forward before Christmas in the Senate. It didn't make it. We had side by side bills. One Republican, you know, Republican sponsored bill, the other Democrat sponsored bill. We just don't have a meeting of the mind yet.

[Andrew Ross Sorkin]

Right.

[Becky Quick (or possibly another host, but likely Becky Quick)]

Susan Collins, the Senate Republican and is leading a group of Republicans who are working on some changes to that.

[Senator Bill Haggerty]

Actually several senators are, Becky, working on a variety of things. But what they're trying to do is address a number of things. One is to put the funds in the hands of the people as opposed to directly subsidizing the insurance company. And they're working along those lines. There's a significant amount of fraud that we've uncovered. In 2021 under President Biden, we went to this zero premium plan that was made available. Since that's happened, a normal private plan will have about 15% of the enrollees in a given year not make a claim. It's up to 40% of people that are enrolled here. The brokers are being paid roughly $1,000 per enrollee. There's a lot of anecdotal evidence that people have been signed up, don't even know they have the insurance. So this money is going straight to the bottom line of the insurance companies. People are not even aware that they're insured. Tremendous amount of fraud.

[Becky Quick (or possibly another host, but likely Becky Quick)]

But is that a quick fix if you just get rid of those zero payment plans?

[Senator Bill Haggerty]

It certainly is one of the quick fixes that have been discussed. I don't know why the Democrats are resistant to this. We're talking about a minor de minimis payment, but that would at least notify the individual that they've got insurance, that they're having to make a month, Even if it's $5 to make a payment. And there's resistance even to that. And we're trying to eliminate the fraud. The program is clearly broken. The rate of escalation of insurance premiums under Obamacare since it was founded in 2014, 260% increase. That's more than 2x the the average private sector premium in my home state. It's even greater than that.

[Andrew Ross Sorkin]

We had Budget Chair Arrington on yesterday and he talked about that vote in the House and he's saying, I hope we don't get a lot of Republicans. That I guess he was foreshadowing. He knew that there were going to be quite a few. He wants to fix everything in another reconciliation bill.

[Senator Bill Haggerty]

There's a significant amount of discussion about a reconciliation bill. That's an option that's open to us right now. Senator Graham on the Senate side is talking about the same thing.

[Andrew Ross Sorkin]

I mean, it sounded like Congressman Arrington is it's going to happen. I mean, it's going to happen near term. Would that be similar to what you were just talking about at this point?

[Senator Bill Haggerty]

That would be one means to fix it in that regard. It could be a wholly Republican product. But right now I think there are bipartisan discussions that are taking place, so we'll see where it lands.

[Andrew Ross Sorkin]

Remember, the president has a pretty good holds a lot of sway in both chambers with Republicans when he lost four yesterday on the Venezuelan vote. I don't know what you say it's procedural, but then 17 on this other thing. And there's, you know, obviously there's Republicans working with Democrats on the subsidies. Would you say that he is losing his grip at all at this point on either?

[Senator Bill Haggerty]

No, I wouldn't say that one bit. In fact, I think the support for President Trump is as strong as you would you'd have ever seen it. I think what you're seeing is the typical process that happens coming into midterm elections and you've got vulnerable candidates that are, that are, that are taking moves that may be helpful to them in their particular constituency. But I don't think that's a broad, a broad swipe against time.

[Andrew Ross Sorkin]

And there are some numbers that we'll see today with job numbers that see the trade deficit yesterday that was like Rick Santelli almost. His teeth almost doesn't have dentures. But I thought they almost came. It was cut in half, basically. Maybe it's, you know, imports. There's not as much demand but definitely there's more export then you had, I think Atlanta feds at 5% or something on GDP. Is there enough time for Republicans to pull something out of their hat in November? Do you think it's possible that the Republicans hold the House if things start going well in the.

[Senator Bill Haggerty]

I absolutely do. You do?

[Andrew Ross Sorkin]

Because they never do during midterms after.

[Senator Bill Haggerty]

It's not typical. Not typical. And I think that will explain a lot of behavior that you're seeing right now in both bodies, both the Senate and the House. But what I see on the horizon is a tremendous amount of capital expenditure that's coming into play. Go back to the trade negotiations that have taken place that's benefiting my home state significantly.

[Andrew Ross Sorkin]

Deregulation. There's deregulation. Well $57, 78 when Trump came in. Sorry, Andrew.

No, I was just going to ask which is I think maybe more of a social issue, but it goes to like just what's going on politically in the country. What your reaction to the situation with this, this ICE matter in Minnesota that everybody's been watching on social media and on television for the last 48 hours?

[Senator Bill Haggerty]

Yeah.

[Andrew Ross Sorkin]

And how you, how you react to watching that the idea that an American was killed by, you know, an ICE agent.

[Senator Bill Haggerty]

The situation is tragic, there's no question about that, Andrew. But the greater tragedy in my mind is when you have elected leaders and crime encouraging non cooperation with federal authorities. And you know, it's rooted to it in various jurisdictions where you've had people attacking ICE agents, the number of threats against ICE agents have gone up through the roof. I mean over a thousand percent. It's time for people to start cooperating with that.

[Andrew Ross Sorkin]

How do you feel? I mean, how do you think you personally feel and how do you think your constituents feel when you watch videos of ICE agents wearing masks oftentimes without any kind of, you know, labeling about even who they are or what they're doing, ripping people out of. I mean, you've seen these videos. I'm not the first to tell you about these things. These are things that we as Americans I don't think have seen, at least in my lifetime. Do you think that your constituents look at that and say, we love this?

Great. Why have you seen it?

I'm asking.

I know, but we've talked Yesterday, we talked 5 million deportations under Obama. The reason you didn't see it was because the left wasn't obstructing every single deportation back then.

Well, look, I'm asking the senator, what do you think your constituents Your constituents say to you, I love this. Do you look at that, the idea of these mass agents and say, this is what you want?

[Senator Bill Haggerty]

This is an answer that's very easy with my constituents because the violation of our immigration laws that took place, a massive violation of Joe Biden was absolutely a top issue for voters in Tennessee. And I think that was the case broadly across the country. Country, what people want is law and order. And the law and order was completely destroyed at our southern border. Joe Biden. There's been an influx of people, pressure on Social Security.

[Andrew Ross Sorkin]

Let's stipulate and agree that you're right about that. My question is a slightly different question. My question is, do you believe that agents that are oftentimes unmarked, wearing masks in various cities and counties around the country, that that's something that you support?

[Senator Bill Haggerty]

Support. I support whatever it takes to get these people that shouldn't be here out of our country, period, full stop.

[Andrew Ross Sorkin]

They've already docked.

[Senator Bill Haggerty]

I support protecting their own identity too, because they've been doxxed.

[Andrew Ross Sorkin]

They already doxed the individual because we know who he is because he was dragged 300ft in a car, by a car previously. So they've doxed him already. They're going to dox every. If you were an isolated, by the way, would you not want to be.

He's been doxed for a different reason, which is actually that. That some of the government officials released enough information about that person for them to be.

Fair enough. Fair enough.

To be discovered.

Fair enough. But if you were.

And by the way, it's the job of reporters and the public to figure out these things.

But if you were an immigration agent, would you want everyone to know who you were and your family and where you lived with the reaction of that there are trouble traveling bands of people ginned up to go wherever there are ICE agents right now by the left to block, obstruct and do everything they can, by the way.

Look, obviously, obviously.

Okay, how about this?

Never in a million years.

How about this? How about this?

Hold on. I would never in a million years encourage.

Well, that's what they're doing.

[Becky Quick]

Hold on.

[Andrew Ross Sorkin]

But I wouldn't encourage that.

Good for you. But it's being done in any way whatsoever. It's being done.

But one of the reasons, and I'm not saying that there's a valid reason for it at all, but I do think there's a lot of Americans that look at this scenario with this sort of the masked agents thing and say this is crazy. And they are against that. And Therefore, that's part of what they're protesting.

Let's put it in context now, here. The Journal, maybe you can agree with this. The heated way Mr. Trump has gone about his mass deportation policy and the equally heated way that the left has opposed it made a violent collision inevitable. But we had 12 million come in under Biden. Trump's gotten rid of 350,000 Obama deported and sent back 5 million without a word from the left. So what do we do about the 12 million that came in to vote Democratic?

I don't know about that. But the reason why do. But the reason that I didn't have that. But the reason you didn't have the process.

The senator would like to say.

Ok, I'd like to ask the senator this. I imagine that I think you'd agree with me. The reason why you didn't have protests about ICE under Obama was because you did not have images of masked, you know, ICE members ripped off.

They got to be masked because of the way the left.

[Senator Bill Haggerty]

You didn't have the set of circumstances that required them to protect their identity.

[Andrew Ross Sorkin]

Exactly.

[Senator Bill Haggerty]

I think that's the. That's the point that Joe's making. And I agree with that. The other point that Joe made that warrants a real discussion here is what was the motive behind all of this flood of people coming into the country? Whether the number is 12 million, I've heard numbers even higher.

[Andrew Ross Sorkin]

Exactly what it was.

[Senator Bill Haggerty]

The motivation was very clear. And every one of my Senate colleagues made it clear when I put on the floor legislation that would require the census not to count illegal aliens for the purpose of allocating congressional districts and electoral votes. That's what's being done right now. It's a backfill. It's the biggest backfill ever to basically count these people and give disproportionate voting power to states like California, states like New York, where we are right now. Blue cities that create a sanctuary are creating magnets to backfill the laws of population.

[Andrew Ross Sorkin]

Connect the dots. Tim Waltz put up a Somali flag instead of a Minnesota flag to appeal to that constituency to get more campaign contributions to then put a bunch of fake childcare centers. Basically, it runs all the way through the fabric of the incentives.

Are you. I am not disputing with you. There is no. We have no disagreement about the fact that there was a lot of people into this country.

So what do you do now?

There's a question about how. How as Americans, we have a justice system that should deal with this. Whether this system, the way we're approaching it, which does not look very much like the way we've done this in the past is.

[Senator Bill Haggerty]

I would agree. I think it's unprecedented, Andrew. It's unprecedented.

[Andrew Ross Sorkin]

Federal officials calling ICE Gestapo and saying, please go ahead and disrupt this and make sure that. And they're Nazis. And what do you expect when the left. You can't deport these 350,000. We didn't hear a word about 5 million.

It's. I'm just saying there are people who are watching us who think that you're justifying the murder of an American in the past 72 hours.

This is a tragic accident that needs to be investigated. Yesterday you were saying Trump's got blood on his hands because of this woman.

I did not. First of all, I didn't say that he had blood on his hands because. Okay, but you can say that, you can say that. But by the way, to some degree, the way that this has been approached and the way the administration is approaching this and the fact that actually somebody was killed. There is, there is, that exists.

Two more people were killed, again by ISIS things they were also obstructing. They drove it. Whether she did or not, I mean, that's going to be part of this investigation. And there's different angles from all the videos, but it's a tough business. And I don't envy what ICE agents are up against.

[Senator Bill Haggerty]

But back to Andrew's point, it is an unprecedented situation. This is not something that we've seen before. But Joe, you're right. It's because the left has decided to mount a massive campaign to try to block law enforcement. It's because these agents sadly have to protect their identity because they're being doxed, they're being outed, their families are being threatened. It's a sad state of affairs. It needs to come to an end. And I think leaders on both sides of the aisle should sort of take down the heat. And the last thing we need are for federal leaders or state level leaders to be encouraging the resistance to ice.

[Andrew Ross Sorkin]

I mean, you saw the mayor of Minneapolis. That guy has got a screw loose. There's no, there's no doubt. And I don't think Tim Waltz comported himself very well. Right.

I'm not commenting on any of that.

Well, we can each be, you know, express our opinions about what we think is going on. I don't think that it's the, you know, I certainly don't think that trying to do this, then you blame that for an unfortunate death.

[Senator Bill Haggerty]

It's interesting that we're talking about how tight the Congress is, the votes that are happening in the midterm. It's extraordinarily close. And so control of Congress is a very key dimension of all of this. And it's back to what you said earlier, Joe. The reason the border was collapsed, the reason these 12 million people came into the country had a lot to do with changing the voting dynamics here in America.

[Andrew Ross Sorkin]

Did you know we were going to do this? Talk about that. I like, I like when the senator said, I've got something to say about I'm here.

[Senator Bill Haggerty]

Another good discussion.

[Andrew Ross Sorkin]

Yeah. Welcome to Squawk Box. We said it was opinion day. I guess it really is. Senator, thank you.

[Senator Bill Haggerty]

Thank you. Good to be with all of you.

[Andrew Ross Sorkin]

Thank you.

[Senator Bill Haggerty]

Happy New Year. Thank you.

[Joe Kernan]

Next up on Squawk Pod, the proposed state wealth tax that has captured national attention. California's billionaires and its lawmakers sparring over the right way to solve the wealth gap. San Jose Mayor Matt Mahan joins us with his take.

[Becky Quick]

I'm worried that the unintended consequences of this proposed wealth tax could be devastating for our innovation economy here in Silicon Valley.

[Comcast Business Announcer]

Hey, Fidelity, can I get a second opinion on stocks in the Fidelity app?

[Joe Kernan]

With Fidelity, it's easy to get an outside opinion from independent experts and a single score. And then when you're ready, trade US stocks and ETFs with no commissions.

[Senator Bill Haggerty]

That's right.

[Joe Kernan]

I am always right.

[Becky Quick]

Investing involves risk, including risk of loss, online US equity trades and ETFs and.

[Comcast Business Announcer]

Retail fidelity account sell order, assessment fee not included, some account types and securities excluded.

[Becky Quick]

[e-mail] commissions Fidelity Brokerage Services, LLC.

[Joe Kernan]

Member NYSE SIPC @capella University, we believe accessible education can make a difference. That's why we offer scholarship opportunities to all eligible students. Un futuro diferente esta mas cerca de lo que cres con Capella University.

[Capella University Announcer]

Learn more at capella.

[Joe Kernan]

Edu. What made you confident that you could do something that hadn't been done before?

[Becky Quick (or possibly another host, but likely Becky Quick)]

I have no fear of failure.

[Capella University Announcer]

Trailblazing women, changing the game One of.

[Joe Kernan]

My favorite pieces of advice, think about what your boss's boss needs. Leadership can look in many, many different forms. It really does come down to just trusting yourself. Life is short and you just got.

[Becky Quick (or possibly another host, but likely Becky Quick)]

To think big to accomplish big things.

[Joe Kernan]

Julia Boorstin hosts CNBC Changemakers and Power Players.

[Capella University Announcer]

New episodes every Tuesday. Wherever you get your podcasts.

[Joe Kernan]

This is Squawk Pod.

[Andrew Ross Sorkin]

You're watching Squack Box on CNBC on this Friday morning. I'm Andrew Sorkin along With Joe Kernan and Becky Quick, the proposed wealth tax on California billionaires sparking a high stakes debate over inequality in the state's innovation economy. One Democrat speaking out against the proposed measure joins us right now. San Jose Mayor Matt Mahan. Good morning to you. We've been having this debate and it's been playing out not just in your own state, but in some ways across the country. We've had a number of folks from Silicon Valley on our broadcast and of course there's a debate going on in your state. Why don't you, why don't we start with just explaining your position on this? And I'm very curious, not only about your own position, but how you think about your position as it relates to some of the more progressive players in the state right now.

[Becky Quick]

Sure. Was the mayor of the largest city in Silicon Valley. I'm deeply concerned by a proposal that is coming from a place of genuine concern about economic inequality. That's a, that's a real issue. It's an issue that deserves serious response. I don't think that our political leaders at a federal level have done enough to address economic inequality, but I think there are better alternatives, other ways of closing tax loopholes and generating revenue and leveling the playing field for folks. I'm worried that the unintended consequences of this proposed wealth tax could be devastating for our innovation economy here in Silicon Valley. The state's finances, ironically, I think this may ultimately push the burden onto working and middle class families. And as this proposed tax generates capital flight, we're already seeing that the chances.

[Andrew Ross Sorkin]

Are that it gets, that it actually passes.

[Becky Quick]

I think it can be defeated because at the end of the day, Californians have common sense. And when they hear the arguments and understand the potential implications, I think it won't pass. But the damage is already being done. We've seen multiple billionaires, job creators, including Larry Page, the co founder of one of California's most iconic companies, leave the state. This is going to have long term consequences and it's a, it's a problem. It's. Ironically, Silicon Valley is a model for economic mobility, upward mobility and opportunity. My dad was a letter carrier and I came here and worked in the tech industry myself. And that's how I broke into the middle class in many ways. And so I just, I think that the unintended consequences of this misguided proportion proposal could be devastating for the state. And it's working in middle class families.

[Andrew Ross Sorkin]

You know, Ro Khanna, we've had him on this broadcast many times. He has walked A tightrope, given his constituency for a very long time, both trying to support the tech community in some ways, but also being on a more progressive, almost Bernie Sanders kind of left, if you will. And now there is some talk that there could be, could be an effort afoot to try to oust him. What do you know about that?

[Becky Quick]

Well, I've been approached about challenging Congressman Khan, which that's something I'm interested in doing. One thing I'll say for the Congressman is that he engages in robust debate and back and forth with anyone, which I really respect. I know he's listening. I know he's talking to a number of tech leaders and entrepreneurs and I sincerely hope he reconsiders his position. You know, though, Congressman Khan has said something that is really important in his back and forth with Governor Newsom, who himself on this issue, I think has shown real political courage by also pointing to the reality of what could happen. But Congressman Khan's point about waste, fraud and abuse in government is, is right on. I'm glad he's talking about that because just in the last few years in California alone, credible sources estimate that we've had 20 to 30 billion dollars in fraudulent unemployment claims, huge amounts of waste in our health care system. So I think we ought to ask government to do better before we ask taxpayers to pay more. California is a high tax state, has a very progressive tax structure. In fact, the top 1% of income earners generate 40% of the income tax revenue in California already. So let's close loopholes, but also realize that there's a lot of waste and fraud in government. There's, we ought to be going after first before we put our innovation economy at risk.

[Andrew Ross Sorkin]

We were, I don't know if your ears were burning, but we were talking about you the other day and I think maybe your quote, I didn't misinterpret it, but it just, it sort of sticks in my crawl when you say, yeah, it would feel good up front to get rid of all these billionaires. I think you were more or less talking about certain people that look at billionaires that way. But I think it's misplaced. I think it's dangerous. I think, I think billionaire envy is misplaced and stupid. And I don't think billionaires are responsible for the inequality. In fact, I think if there was any group of people that are in a position to maybe help with wealth inequality, it's job creators and wealth creators where shareholders benefit. And then, you know, the employees these guys create or guys and gals create Then pay taxes. And then those taxes can be used to try to equalize opportunity for the people that are getting the short end of the stick. And so I just, I don't even like acknowledging that there is a good reason to hate billionaires. I think it's stupid and misplaced and misguided. Don't say.

[Becky Quick]

Let me comment on that. Yeah, so fair enough. And I, look, I'm not saying it feels good to me. I'm just, I'm trying to figure out how to empathize with those who are proposing this. And the reality is there is real economic pain and uncertainty there. Cost of living is, is the, the biggest issue on people's minds. And the, the reality is that these are public policy failures that are leading people to grasp for policies that are going to backfire. We need to get out of the way and build more housing. We need energy abundance to bring down costs. We need to do things to make people feel Democrat green.

[Andrew Ross Sorkin]

Matt, you don't. That you're a Democrat.

[Becky Quick]

Yes, I am serious because I think government has a role to play in providing public goods. Otherwise. Provide.

[Andrew Ross Sorkin]

You make a lot of sense, but you can't move back here and run for New York City mayor. Thank you.

[Becky Quick]

No, that I can't help you with.

[Andrew Ross Sorkin]

Good luck.

Nobody can. Nobody can. Nobody can help us with that. Yeah.

So, Matt, the other piece of this, I don't know if you. We had Robert Frank on earlier this week. There's a question mark, and this is a technical issue about whether you believe possibly even those folks who have potentially already left the Peter Thiel's of the world or the Larry Pages of the world that almost retroactively this could get counted, if you will, meaning that they could be on the hook, even having left, depending on how you look at the dates. Have you focused on any of the technical issues? Because I think there's a lot of people who are, who are focused on that right now.

[Becky Quick]

Well, I think you're right. And you know, I don't know the answer. I suspect it'll have to be litigated. But that very kind of uncertainty is destructive already. And I think there was a rush to leave the state before Dec. 31 or Jan. 1, because folks felt that that date was the point at which it would be retroactive to. If it were to pass. I, I think it can be defeated. But it's one more sign that California's political leaders are and powers that be powerful interest groups in the state don't really understand and respect how the economy works and how we to the earlier point, how wealth is generated, opportunities created. But we also have to look in the mirror and recognize these proposals don't come from nowhere. People are feeling uncertainty and fear. Cost of living in California is out of control. They've just misdiagnosed the problem. And it's up to us as public leaders to own the problem and say we're going to build more housing, we're going to invest in infrastructure to help you get around more efficiently.

[Andrew Ross Sorkin]

Here's a tax question for you. So one of the things you can be against a wealth tax, and I've had lots of questions about whether a wealth tax makes sense for a lot of reasons, because of, because of the issues of actually having to realize the gains which are not realized. In this case. How do you feel about, for example, a lot of folks who've made an extraordinary amount of money in California who effectively take loans out against the stock so that they never pay taxes or that they don't pay taxes until they pass their wealth onto their children at death. And then of course, that gets quote, quote, unquote stepped up. And then there's effectively a massive missing piece of tax along the way. Even though I do recognize that actually at death there is a tax, but it is a much smaller tax.

[Becky Quick]

That's right. Well, I think you've pointed to the primary loophole I'd like to see closed now. I think it has to be closed at a federal level. And I encourage Congressman Khanna to focus on pursuing this at the federal level where he represents us here in Silicon Valley. But yeah, you shouldn't be able to indefinitely borrow against your unrealized gains as a way of avoiding ever paying taxes on those gains. And I think Bill Ackman's had a good proposal on how to address that. It makes sense. That would be the first loophole I'd look to close. It's not the only loophole. And back to my earlier point, we also have to be honest that there is a lot of waste in government and outright fraud. And so it's not. It's not either. Or we need to close loopholes. We need to make government better. But let's not pursue tax policy that is going to backfire. We've seen it. This has played out before. A dozen European countries have tried wealth taxes. I believe nine of them have already rolled them back. The majority of them actually reduced their overall tax base because people respond to incentives.

[Andrew Ross Sorkin]

Okay, Matt, want to thank you for waking up early speaking to us today.

Matt, what about, what about Minneapolis? You avail you like, could you move there and run for mayor? Would that.

[Becky Quick]

I'm pretty happy where I am.

[Andrew Ross Sorkin]

It's pretty good about it. Talking about Bill Ackman. He's up on that.

[Becky Quick (or possibly another host, but likely Becky Quick)]

He's got sun. He's got.

[Andrew Ross Sorkin]

Yeah, maybe you don't want to move Cold there.

It's cold there.

It is cold.

Thanks, Matt.

[Joe Kernan]

That's Squawk Pod for today. Thank you for listening today and every other day. Squawk Box is hosted every weekday morning by Joe Kernan, Becky Quick and Andrew Rossworth, all of whom have projects beyond our three hour TV show. Becky just launched CNBC Cures, an initiative zeroing in on rare diseases. She also launched a new, very special and very personal podcast. The Path with Becky Quick is available right now on your Squawk Pod feed. Of course, if you follow SquawkPod, you'll have easy access to that podcast and this one. So go ahead and do that. In the meantime, we will get ready for a full week of all new podcasts starting Monday. Have a great weekend.

[Andrew Ross Sorkin]

We are clear. Thanks guys.

[Fidelity Trader Plus Announcer]

Introducing Fidelity Trader plus with customizable tools and charts you can access across all your devices, Try our most powerful trading platform [e-mail] trader + investing involves risk, including risk of loss. Fidelity Brokerage Services LLC member NYSE, SIPC.