Squawk Pod Podcast Summary

Episode: NYC’s “Tax the Rich” Debate & Privatizing TSA
Date: March 30, 2026
Hosts & Contributors: Joe Kernen, Melissa Lee, Becky Quick, Cameron Costa, Robert Frank
Key Guests: Stephen Fulk (President & CEO, Partnership for NYC), John Pistoli (former TSA Administrator), Nat Carmack (BOS Security President)

Episode Overview

This episode delivers a robust discussion centered on two major themes: New York City's controversial debate over taxing the rich—amid high-profile rallies and continuing wealth flight—and the push to privatize TSA operations at U.S. airports following government shutdown disruptions. The hosts and guests also touch on key news events, including global market turmoil due to Middle East tensions, the latest on Tiger Woods’ legal troubles, and a quirky KitKat heist.

Key Segments & Insights

1. Markets and Middle East Escalation

Timestamps: [03:13] – [07:01]

• Context:
  Dan Murphy in Dubai reports on the fallout from the U.S.-Israel air campaign, Iran's retaliatory posture, and the Houthis' entrance into the conflict, impacting the Bab El Mandeb strait.
• Market Impact:
  • $12 trillion in global wealth erased
  • Brent crude up 50% in volatile trading
  • Global inflation threat as Houthis threaten trade choke points
• Quote:
  • “This is 12% of all global trade, 10% of seaborne oil. And if the Houthis block that waterway or threaten ships, then we could see a real impact on global trade.” – Dan Murphy [05:35]

2. NYC’s “Tax the Rich” Debate

Timestamps: [13:24] – [23:50]

Setting the Scene

• Bernie Sanders held a major “Tax the Rich” rally in the Bronx over the weekend, energizing calls for an extra 2% city tax on high earners ([13:35]).
• New IRS data: New York lost $10B in income to out-migration; highest gainers were Florida ($21B) and Texas ($5.5B).

Sanders’ Core Message

• Quote:
  “The people of this city...do not want to see our kids go hungry...lack health care. They want the very rich to start paying their fair share of taxes.” – Bernie Sanders (quoted by Becky Quick) [13:57]
• Governor Hochul urged wealthy New Yorkers in Palm Beach to “see who you can bring back home” ([14:29]).

Wealth Flight and Employer Response

• Robert Frank details ongoing exodus: major firms considering Texas and Florida.

• Apollo considering a second headquarters outside NYC due to higher taxes.

• Stephen Fulk, Partnership for NYC, sent a cautionary letter urging careful policy decisions amid NYC's “fragile environment.”

• Quote:
  “Less people here, less wealthy people here, less employers here leads to less revenue, larger affordability crisis.” – Stephen Fulk [20:18]

The Revenue “Crisis” Dissected

• Despite “deficit” narrative, NYC revenues are actually ahead of projections.
• Fulk highlights runaway growth in the FEPS rental assistance entitlement, up 4% per month and “absolutely unsustainable” ([17:43]).
  • “No other city in the country has an entitlement program like that. So I think that's kind of at the core of the issue.” – Stephen Fulk [18:26]

Debating Tax Burden & Fairness

• Disagreement over how the “rich” are taxed:
  • Top 1% pay over 40% of NYC tax; top 10% pay 80% ([21:44]).
  • Sanders uses metrics based on unrealized gains, which Robert Frank labels “completely fabricated” ([19:49]).
  • Discussion of marginal tax rates “pushing 60%” for high earners in NYC ([20:14]).
• “There's a tripwire somewhere and I think the far left fails to recognize that...” – Stephen Fulk [20:18]
• On progressive taxation:
  • “We have to say we have a progressive income tax system...the wealthy pay the highest rates.” – Robert Frank [22:11]
• Political dynamics:
  • “Ten years ago people would define themselves as fiscally conservative...polling shows that most of America is fiscally liberal because they feel the system isn’t working for them.” – Stephen Fulk [23:29]

3. Privatizing the TSA: A Solution?

Timestamps: [26:02] – [32:12]

Backdrop: TSA Pay Debacle

• Shutdown leaves TSA agents unpaid for over a month ([26:02]).
• Agents expected to be paid shortly after an executive order, but mass resignations plagued the agency.

Privatization Discussion

• John Pistoli (ex-TSA Administrator):

  • Privatization is gaining interest amidst frustration with government instability and staffing shortages.
  • Frontline security could be privatized, while federal oversight and standards remain ([27:53]–[29:00]).
    • “There's a sense of unease about is this a good policy to go forward with TSA where we can't rely on them and that unpredictability is not good for business, not good for leisure travel...” – John Pistoli [30:37]

• Nat Carmack (BOS Security):

  • Process to privatize is easy but not quick—takes about a year ([29:13]).
  • “Private security is less expensive” due to required cost-benchmarking ([29:56]).
    • “Definitely a savings for the taxpayer and gives them more flexibility.” – Nat Carmack [29:56]

• National security concerns are mitigated by strict federal standards at privatized airports; data shows equivalent or better security ([30:37]–[32:06]).

4. Notable Quotes & Memorable Moments

• On the “wealth flight” from New York:
  “New York had a net loss of $10 billion in income from net out migration... Only California fared worse.” – Robert Frank [14:29]
• On policy and reality:
  “We should be careful with this budget.” – Stephen Fulk [16:02]
• On the unsustainable nature of current programs:
  “It's growing at an astronomical rate because more people need the program.” – Stephen Fulk [18:18]
• On privatized airport security:
  “The SPP airports are commensurate with, if not better in some instances than some of the TSA airports.” – John Pistoli [31:20]

5. Quick News Hits

Timestamps: [07:01] – [10:35]

• Bank of America settles Epstein lawsuit for $70M (no admission of wrongdoing).
• Tiger Woods released on bail after a DUI-related car crash—hosts discuss his medical history and public perception ([08:00]).
• Quirky: 12 tons of KitKats stolen in Europe; hosts riff on “exceptional taste” of the thieves ([10:30]).

Segment Timestamps (Quick Reference)

| Segment | Timestamp | |-----------------------------------------|---------------------| | Global Markets & Middle East | 03:13 – 07:01 | | NYC “Tax the Rich” Debate (Robert Frank + panel) | 13:24 – 23:50 | | TSA Privatization Discussion | 26:02 – 32:12 | | Quick News Hits (Epstein, Tiger, KitKat)| 07:01 – 10:35 |

Tone & Style

The conversation was lively, informed, and occasionally irreverent—balancing incisive financial journalism with personality-driven repartee. Becky Quick, Melissa Lee, and Joe Kernan kept the interview style brisk and fact-focused, digging into policy implications while making room for wit and memorable asides.

Summary Takeaway

This episode of Squawk Pod provides a nuanced look at the mounting tension between the political drive to tax the wealthy and the economic realities of business and population migration from New York. Policy complexities and practical consequences are laid bare. On the TSA front, the episode offers a clear-eyed exploration of the pros and cons of privatized airport security, augmenting national debate in the wake of federal funding instability.

For listeners who missed the episode:
You'll come away with sharp insights into the very real impacts of tax policy debates in NYC, the challenges facing federal agencies from political gridlock, and the way large employers and individual earners are responding to shifting incentives—all set against a backdrop of global instability and a dash of news whimsy.