Squawk Pod: Expanding Trump Accounts with IRS CEO & SSA Commissioner - 07/16/26 | Audio Only

Bring in show music, please. >> Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod, one man, many jobs. He runs the IRS, Social Security, and now the Trump accounts, investment vehicles for newborns. Frank Bizignano on the newest public program. If you want to go to the core, you're going to say what we want these children to own is an index fund and see the growth of the index fund and not be single stock focused. >> Streaming giant Netflix is poised to report latest financial performance, what its 300 million plus subscribers need to know. Analyst Robert Fishman, >> we do think it's a good buy here, a great buy. And I think the the attractiveness of the stock position today is this question whether or not the growth is sustainable. >> Plus, new tariffs on Brazil, an uber sized deal, and watching the rock stars watching the World Cup. >> Did you see how perfect that >> Oh, had the placement >> that perfect. Yeah. >> It's Thursday, July 16th, 2026. Squawk Pod begins right now. >> Stand back by in 3 2 1. Queer, please. Good morning everybody. Welcome to Squawkbox right here on CNBC. We are live from the NASDAQ market site in Times Square. I'm Becky Quick along with Joe Curten and Andrew Ross Sorcin. >> Meanwhile, the US has levied 25% tariffs on most imports from Brazil effective next week. It concluded a year-long investigation into alleged unfair trade practices, including ordering American tech firms like X, Meta, and Google to remove certain political content and suspending accounts of US residents. They also cited Brazil's preferential tariffs from Mexico and India, weak intellectual property enforcement, and ethanol market barriers. Certain Brazil goods will be exempt from those tariffs. Those include beef, orange juice, aircraft, uh, aircrafts and other parts, and some energy products. In a statement, Brazil's president rejected the tariff decision as groundless and vowed to initiate counter measures. Now, President Trump has been seeking to reassert his authority over trade. This, of course, after the Supreme Court struck down what was those previous tariffs, including a 50% tariff at that time uh on Brazilian goods. What we're now seeing, of course, is the administration going through the process of trying to evaluate each country on a country bycountry basis. um that appears to have a a more grounding grounded legal basis. Um the question of course is there's questions probably within even even something like this on the grounding of some of those things and then what Brazil does to retaliate. >> And I guess we're going to talk about oil. We got to talk about what's happening in Iran. Uh early this morning, Iran warned that it would crush key targets in the Middle East if President Trump carried out his threats to target Iran's infrastructure. On Tuesday, President Trump said if a diplomatic breakthrough isn't achieved by next week, then the US would target Iran's power plants and bridges. And speaking yesterday at the Pennsylvania Defense and Innovation Summit, President Trump addressed the impact of the war on the price of oil. A lot of people thought oil would go up to $350 a barrel and it's Today it's at $79. A couple of days ago, it was at 68. It went up a little bit because I had to take tough action because they did not uh obey what they're supposed to obey. I mean, they just didn't do it. So, we took a little action, but it'll all when that settles down, you'll be I think you're going to have $55 oil, which is all great for what you're doing. Maybe less than that. Let's check out where crew presses are and 79. So below 80, which might be a little bit surprising, I guess. >> I was actually surprised to see it this morning. >> Surprising. It is. Yeah. >> Uber buying a German food delivery company, Delivery Hero, for 14.8 billion. It's a big deal to create the world's largest delivery firm outside of China. Uber made that acquisition conditional on a minimum acceptance threshold of 50% plus one share. It's offering $47.58 per share in cash for that company. Roughly a 34% premium to the stock's 3month average share price. Now, as part of the deal, Delivery Hero will devest businesses in 14 markets where the companies overlap uh to US investment firm SSW Partners. And >> so that's interesting. Delivery Hero has a much larger area than just German Germany where they're delivering. >> Yeah. All over. All over. Um it's a big premium too. So, uh, big conversation understand sort of where Uber goes with all this. >> The New York Yankees are in advanced talks with Apollo Global Management to raise about $3 billion of financing. That's according to multiple reports that say the two sides are discussing a package that includes mostly debt and some equity. So, we're we're seeing private equity world uh increasingly move into the world of sports. >> Yep. And in World Cup news once again, Argentina uh really showing you how great watching soccer uh can be. But not if you're a fan of England, obviously, but Argentina defeated England 2 to1 yesterday in Atlanta to advance to the World Cup final. Sunday at at 3 uh p.m. England was ahead late in the game. Uh I guess we're calling it the middle part of the second half, but Argentina scored two late goals to win the game. You could see Messi just but once again sort of just decide I'm not going to let this happen. Um Spain advanced Tuesday defeating France. Spain only allowed one goal through the whole tournament. Uh the final matchup as I said met life 3 p.m. uh in New Jersey and 58% of the people are are actually betting on on Kouchi on on Spain uh winning the World Cup. I I don't know whether that's I it'd be tough. It's tough to go back to back. That's what it would be for Argentina. And if you go on social media, >> the the rage and and just disappointment for the the I guess they're called the Three Lions or something. I don't know. I'm I'm not a big watcher, but the Three Lions, this was everybody's chance uh that that's a fan of of English soccer. And they invented the the game and haven't won the sport. Haven't won since the early 60s, I think. and they really felt like they had it in in previous I guess matches they've complained that they got too defensive and that's what they're complaining about the coach yesterday substitutions uh after they were ahead that the game sort of moved to their side uh and and they were instead of attacking they were being trying to play not to lose instead of playing to win and people are just furious at at this coach and he said hey look whenever you know you lose, people are going to be mad you lost and I can take it and stuff like that. But seems like it might be more than this for I saw some stuff on on Twitter people just cursing and and you know that on a podcast or something as it was happening because it was one to nothing. I was watching the guy goes, "No, no, don't substit." And they go, "I knew it." You saw, I guess, MC. I saw MC Jagger when Messi did the last assist that that got knocked out. See how perfect that >> went. Oh, had the placement >> that perfect. Yeah. From and the goal to to tie it was was a like a bender. Yeah. >> That that made the corner. Can't believe I watched that. Watch the whole game. >> Cheese will be next. >> Coming up on Squawk Pod, the future of the safety net. We have the man who runs social security and also coincidentally the tax authority, the IRS. Frank Bignano. >> We don't have a funding problem, right? Like we have a get work done problem and you know me, you know my history, right? We know how to get work done. We can do more with less. Okay. >> But technology is a great enabler. >> You're listening to SquawkPod from CNBC with Joe Kernin, Becky Quick, and Andrew Ross Sorcin. >> Stand by. Joe, his mic Q. More than 6 and a half million families have signed up for Trump accounts which launched July 4th. Our next guest was just named to lead the expansion uh of the program. Joining us now, Frank Bizigno, who also serves as commissioner of the Social Security Administration and the CEO of the IRS. You're sleeping at all, Frank? >> Oh, yeah. You're still a few hours. I have a few hours. Always up early. Always ready. >> What is possible in your view if you're really successful with with the the Trump accounts? Where could we be a year or two from now in coverage? >> I think I think uh you know it's very very informative. Last evening I had dinner with uh the CEOs of tax preparers and talk through their capability to distribute this product. And so you have to think about we have all types of distribution. We have the ability to enroll people uh very simply. And I think the objective is to have 70 million children under 18 to have a Trump account. I a great vehicle. Uh it's generationally changing. It's bringing financial literacy to youth also. You know, we all can remember understanding a little bit about the market. Well, everybody has the opportunity. the fact that it's pro- family $1,000 uh for a baby uh born, you know, for the next four years. Uh so I think I think we should have every family uh enrolled in a Trump account. I think that's the objective and I think it's really capable. Financial planners, tax planners, right? Uh the ability for us to distribute through banks, everybody. Uh, it's good for America, good for financial literacy, good for pro- family, landmark program for the secretary and president. >> The the onboarding process is is does is that need to be made easier? Do you do you need more money? Do does everyone need to step up corporate America and and funding? >> Well, you know, we have 50 companies. You know, obviously you saw what uh Michael Dell did and his family and we're talking, you know, an hour a day on making that great and being the prototype for others. I think you're going to see a lot of philanthropists who want to do this and are waiting to watch how it rolls out for Michael. Uh it's a startup business. Now, if you remember, I've run startup businesses. We built Clover to turn around first data, right? It's a technology business really. Uh and I think we're going to make it simple for people enroll for people to watch their money grow, invest in the S&P for young children. with the 50 companies that have given money with um Michael Dell with all the money he and his wife have given how many kids do you cover uh versus left. >> Well, every one of these are different, right? >> Right. I know it's for certain kids in in certain areas for certain areas. >> Well, but I think you're going to end up with given the order of magnitude and many of these are $250 say, you know, celebrating 250. Everybody has a different angle on it. Um, I think I think this is why I'm so confident about the 70 million ultimately. Yeah. And and we have lots of people standing on the sidelines prepared when they actually watch this for the next few months. Work very very well. Uh, and you know, I I I think I think we're in the startup phase. I'm on, you know, day two and a half. >> I I I love what it does about teaching kids about for long term to make sure you have something there when you retire. I mean that that is something that's pretty exciting. >> Yeah. I mean it's a a investment vehicle that uh you know donations can go into contributions could go into I'm sure we all experience at some point uh a niece a nephew or grandchild that you may have given a few shares of stock to so they would learn here America is doing it for for these children. >> Frank there's two questions. one uh about the recent effort and this is we talked to Brad about this actually just two weeks ago. Uh Gwen Gwen Shotwell uh gave her donation. The plan at least as I understood it was that that donation of shares in SpaceX would uh not just go into these funds and get turned into cash and or get liquidated and turned into you know other mutual funds and the like. But the idea is that those uh kids who were getting those shares would al ultimately keep those shares, hold those shares until they were 18 years old. Um there's something very attractive about that uh on one end, but you know where I'm going to go because if you look at the law as at least it was written, um it seems to suggest that that is not uh what at least the intent of the law was. uh there's some potential opening for the Treasury Secretary to give guidance uh and the like, but it seems like the whole idea was to put people into diversified funds. It also creates some uniquely strange incentives because effectively if you put, you know, if Warren Buffett were to put hundred billion dollars of his shares, he could effectively park money, park those shares rather, uh for 18 years uh without voting rights. I mean, there's there's a whole bunch. So, I'm curious how you're thinking about that. how we're thinking about and and of course uh you know there's uh the intent of the law the law and then there's always within that law uh the secretary who's my close partner in in all these endeavors right right now we're working on uh getting the product launched and you know investing in the index fund for them right >> right that was the intent uh you know how things are Right. Uh we're always working through details. This is uh this is uh fund seed money for youth with high finance on top of it. Uh so uh stay tuned. But if you want to go to what we the intent is the intent is to have them in a fund to be able to grow with the S&P and you look look at the 20-year growth pattern. But but the whole effort to get a Warren Buffett or to get an Elon Musk or to get a Jensen or whatever to donate large swaths of their companies and then have those shares sit in those funds. Is that is that the long-term intent? Because that was at least as our understanding of the Gwen Shotwell uh contribution what was happening. >> Uh it's in process. Okay. >> Right. I mean I mean you know there's a lot of elements to this but if you want to go to the core you're going to say what we want these children to own is an index fund and see the growth of the index fund and not be single stock focused. >> Right. Can you can you imagine that there are certain people that and I'm sure that there are that just don't like this because it's it's called a Trump account and I mean TDS is a real it is it's it's a real thing. I report I report I report to the president and I have uh synergistic roles across uh the government if you think about it with IRS Trump accounts and SSA they actually I like to say to people if Jaime Diamond was looking at a company had these he'd have these all together so we could get the leverage and benefit it sounds preposterous to think that someone wouldn't want to do this for their children just because they don't want to do something associated with but it's the way it is in the country right Now, it's sad to say. I mean, there could probably half the S&P 500, you might have an issue with the company would just some of those CEO would just say, "No, I'm not interested in doing this." >> Well, you know, I mean, uh, >> how do you overcome that? Just >> I think look at uh when I took social security, I thought everybody wanted this fixed. Everybody wants us to fix the operations of it. That it was it was a mess. But you learn that, you know, some people weren't happy about you fixing it because it wasn't who they wanted fixing. >> And then we could get into the IRS question. Andrew has talked about this a lot. >> I was going to go just based on what you just said is there's also people who don't want to fix the IRS, which is a lot of people, including by by the way myself often say we should have better technological systems. It should be easier. The whole process should be better. And yet and we and there's been argument made, studies have shown, you know, for every dollar spent, you actually collect the you collect more revenue and all of the things that you would think we should focus on given that this is we're revenue entitled to. >> Here's where it gets into an issue though is customer service. Like we need it absolutely to be digitized and be easier to work. How do you make people who don't understand or who are fearful of that who can't get their phone call answered? How do you how do you balance? You know, I I uh I think we've we've I have approached all of this as a digital first >> opportunity than people. And of course, we say we're going to meet clients where they want to be met. >> At IRS, we had hundreds of millions more online inquiries this year than last year. >> Wow. >> Hundreds of millions. Like a 60% increase because we built better technology. The beauty is, you know, people talk about modernizing. I talk about transforming. We're not modernizing. We're not going to move from one form of data center to another. We're changing the client experience. Interact with us mobiley. At SSA, we have over a 100 million digital users. >> That's more digital users than JP Morgan and Chase, uh, JP Morgan and BFA combined, right? It's actually the largest digital financial service organization. It wasn't before. >> Would you like more funding though? Because that's always been the question about how much. >> We don't have We don't have We don't We don't have a funding problem, right? Like we have a get work done problem. And you know me, you know my history, right? We know how to get work done. We can do more with less. Okay? >> But technology is a great enabler. It's not going to get done. And we we bring in great technologists, right? real CIOS uh that actually understand how to commercially drive outcomes and business people who are driving outcomes and and that combination with good career people can get that type of outcome we did this IRS season. >> Are you going to fix our our looming problems with with social security? >> Well, I think I think we are fixing it, right? >> The funding problem. >> Yeah. the funding side >> as you guys know you know uh I' I've I've uh taken on things in my career whether at JP Morgan and the mortgage crisis whether first data KKR's largest investment that was supposed to be bankrupt it was 07 LBO when we turned it >> into into a great company through technology right and so what you learned when you got to SSA is its most important database where it it was called nubinant, not a phrase any human would know. So I call it now the social security number database, something humans can understand, right? Was never reconciled. So you have 330 million plus records and you've never reconciled. Well, we found a 10% error rate in it, right, over the past year toiling through it. So to me, once we finish the fixing, right, it used to take 40 minutes to answer a phone. Now it's one. Then we'll get to what the reality of has to be done. But think about what a good payment error rate is. It's 0.00001. And if you have a 10% corebased operating challenge here and you know it was all about eliminated fraud, waste and abuse. It wasn't necessarily that people were getting social security payments and they were dead. it was that there was a live social security number that could be used all across America. So I think as this thing will be done, we will then have a new look at what's the reality of anytime you're going to fix a business, you got to pick the core operations first before you can determine what the profitability model is. >> Do you think that the the age of retirement is going to have to be raised at some point? >> I don't you know I I I you're going to fix it. I don't I don't look at there's a whole bunch of people who are going to opine on this in the end. My job is to give them the best possible situation to make a set of decisions off of and I think we're doing it really really well. >> Commissioner, thank you. >> Hey, pleasure to see you guys, man. >> I miss you. >> Nice to see you. Good to see you. >> Thanks. >> There's more Squawk Pod ahead. We'll be right back. This is Squawk Pod. >> You're watching Squawkbox right here on CNBC. I'm Becky Quick along with Joe Kernan and Andrew Ross Sorcin. >> All right, we're going to get Netflix numbers after the bell. Joining us now with more on what investors could expect, Robert Fishman. Uh he is Mafet Nathan's senior analyst. We've talked about the stock. Uh Robert, and we've seen this movie before. So we were at 134. This is even before Warner Brothers. So it started going down. Then they I guess people thought they needed Warner Brothers. That's one of the reasons they they got involved. Uh so 134 down to the 120s. Now it's down at 73. >> Right. There was a time it was 8 before the split. It was 800 and went down down below 200. So we've seen pullbacks. Is this more serious this time in terms of the remaining number one? We thought they won the streaming wars and would would people say that now that they are the unequivocal winner? >> Well, I think it's clear that Netflix has won the streaming wars in terms of the subscription wars. Um, you know, we've debated over the many years whether streaming is actually a good business. Michael Nathansson who you know um my colleague and and we've determined that streaming for Netflix is really a good business. The question I think investors have from here is how much growth is going to continue and there's a lot of uh focus on the engagement report that's also going to be coming out um later today and there's a lot of worry around how they can continue to grow engagement going forward. So, I think that the narrative around Netflix has really shifted and now the question is how much more growth is is to come. >> They look like they're doing things that that indicate that they're worried about about the model in terms of live sports or offering a bundle of other streaming services for engagement. And and I've complained, you're not getting engagement because you have no good content right now. You've totally lost it. You've got and then this is just me I guess but ratuitous woke content across the board which you're losing half the country on a lot of that stuff but do they have any idea how to bring back something like I mean I I go to Apple I go to even Warner Brother I see slow horses there there are there is qual HBO there's quality programming it's not on Netflix >> I think Netflix is very much aware of of the quality and and continues to lean in on on quality content It's something that they're very focused about building. You you mentioned sports. We've been talking about Netflix continuing to ramp up on their sports investment and and we would expect that to continue. More NFL games are are coming, you know, this upcoming season. So there there's a lot that we think Netflix can and should do. You mentioned, you know, broadening out beyond just the the core business. We're we're expecting to to hear some update around whether or not the company is willing to expand beyond just that that core service and and maybe bring in some bundling and use the the power that they have which is that global streaming scale. How can they use that in a different way by bringing in some some bundling or even launching a fast channel and competing head-to-head with some of the other free engagement that's out there with YouTube? Would you want to see that or do you think that would ultimately undermine the value proposition of Netflix itself? I mean, we are in this, you're right, there's all these free channels that that are popping up and having a lot of success. They're having to get into sports. Meaning, what you think they should be, uh, more into games, uh, for example, like where would you go if you were really trying to grow the business? >> So, I think we would >> long term, not short term. That's sort of the hard part. >> Correct. So in terms of growing that that overall and using the power that they have, I would love to see them enter the free ad supported business, I think that's incremental and can help accelerate the advertising growth. Um, you know, sitting here today, they're in the early innings of this advertising story. So we expect them to go from the 3 billion this year up to over 9 billion by by 2030. Advertising is just going to help accelerate this monetization story because people investors are worried about how quickly revenue can continue to grow and can margins continue to grow with that by investing continue to invest in the content spend sports clearly expensive content but at the same time that's how you drive this overall flywheel. >> It probably can't happen for about 3 years uh for tax reasons and other things but would you like to see Netflix buy NBC Universal if they could? I would love to see Netflix explore how to get just Universal and theme parks within NBC Universal. I don't think Netflix has any interest in getting into the linear business again. >> But don't you think you'd need that programming, meaning the sports that's on NBC and everything else to make that work or No, >> I think if they got the ability to get the sports rights out of it without owning and controlling the linear assets, that would be a way to structure it. But that becomes a lot more difficult. >> Turn around. I can't imagine that happening though. >> No, that that would be tough. >> I'd like unicorns to fly me around back and forth towards >> I don't know what you think is going to happen with all these state AGs on the Paramount deal, but if Warner Brothers were to somehow come back up and be available, do you think that Netflix should buy them? >> Paramount, you said >> not Paramount Warner Brothers. >> I think Netflix would very much be interested in acquiring studio and IP. I think that's why they were interested in the Warner Brothers deal. Clearly, >> you want them to buy Sony. I mean, >> I don't think their Sony is available for for sale right now. >> I don't think so either. I'm just going through the permutations of what are the things that out there that you think could actually change this dynamic if you think this dynamic needs changing. Well, I think to the point Netflix still has a lot of opportunity to grow organically and that's why what we're looking for um you know later today on the earnings is what other businesses are they looking to enter into by using that global scale in a different way. Can they enter into the whole channels business, streaming channels business and you know start to sell different types of subscription services around the world bringing Peacock which is just in the US. Can they bring that around the world and and start to monetize their scale in a completely different way? >> Robert Robert the um the street freaked out when Netflix got involved with the the deal that they were going to go to go after Warner Brothers before. I don't know if they thought it was overpaying or if it was because the street said, "Wait a second, they think they need something else to do." Um, do you basically not want to hear them saying that they're going after other places that you'd rather have them focus on what they're doing internally? >> Well, I think it's incumbent upon them to always explore what's out there. I think the Warner Brothers deal was a unique deal back to that point and and the company separated their assets so that it was attractive for Netflix to just look at that studio and streaming asset at the same. So 300 billion and and I'm not comparing Comcast and it you know getting rid of of NBC that that's $80 billion. I mean is is Netflix worth four times what Comcast is worth right now? >> Well, we can get into to Comcast that you know Craig >> don't even get into Yeah, you don't need to get into that. But I'm just saying it's still worth a it's still got a really high market cap if you don't think they're they're going to be able to to find growth opportunity or or do you think it's a great buy here? We do think it's a good buy here, a great buy. And I think the the attractiveness of the stock position today is this question whether or not the growth is sustainable. We see it as very sustainable. We think it it is a a good business ultimately. Coming back to that and we see, you know, 20% plus earnings growth and at this price it's a very attractive entry point. >> You watch TV? >> I do. It's >> just squawk box or or >> only squawk box. >> You do? God bless. >> What What are you watching? Anything on Netflix? Got anything for me on Netflix? Anything? >> I I'm still playing catchup with with my young kids. So, we're watching Diplomat right now. Good show. >> Good show. Deborah Khan, she wrote it. It's a great show. >> Yeah. >> Okay. Where's Widow Bay? That's kind of okay. Is that Netflix? >> That's Apple. >> Oh, that. See, even when I only say kind of good. Okay. Thank you. >> And that is Squawk Pod for today. Thanks for listening. As always, Squawkbox is hosted by Joe Kernan, Becky Quick, and Andrew Ross Sorcin. Tune in weekday mornings on CNBC at 6 Eastern. To get the smartest takes and analysis from our TV show right into your ears, please follow SquawkPod wherever you get your podcasts. Have a great day. We'll meet you right back here tomorrow. >> We are clear. Thanks, guys.