Out of congress as opposed to just these executive orders from the president that are taking quite a bit of heat over the weekend. Yeah, look, david, i think that there is a sense initially that it was a white house grab and it kind of went through the weekend, there was a recognition that, wait a second, maybe it is a grab if youre going to give 400, 100 has to come from the states and many of the states including red states are in trouble. The thing that is most compounding people is that 12 of the people who make 80 to 100,000 get this bizarre payroll tax cut when the problem is not the people employed but the people who are unemployed. I think that its arer so counterintuitive our old friend larry kudlow always believed in that. We have secretary mnuchin right now, which is terrific lets do it lets do it. Go ahead, jim. Mr. Secretary, always good to see you on squawk on the street. We get a little bargaining done on the show. How have you been . Good morning. How are you . Im doing fine, thanks. I know youre not happy about things off the rails because 31 Million People are unemployed. How do we get things restarted and how do we get it that Speaker Pelosi doesnt think that your side because i know you do and i know you want to help the most vulnerable people. Well, jim, i think there is a compromise if the democrats are willing to be reasonable there is still a lot of things that we need to do and that weve agreed on. Let me just go through a few of them first of all, schools. The president wants to make sure that there is enough money to open schools safely. Thats something that is very important. I think youve heard me say the democrats and the heroes bill had 100 billion. We put in 105 billion. I have spoken to many governors over the weekend to understand their direct costs ill be getting on a video call this afternoon with all of them and the Vice President to talk about schools. Weve agreed on more money for ppp and businesses that are particularly hard hit getting a second, a second check weve agreed on more direct payments like we sent out last time the democrats wanted money for food, so we compromised on that. We want money for vaccines, hospitals, rental assistance and weve given them flexibility and we offered more money for state and local but were not going to give 1 trillion to state and local. Thats just not a reasonable approach right i completely understand that but i guess where i feel that theres some unrealism is how do we get something for Small Business right now i know that you are actually the voice for Small Business in this country. Those are the ones directly in the crosshairs of covid19 it is certainly not their fault. You spoke from the very beginning about business interruptions insurance. Why cant we make it retroactive for Small Business so we can get these places in shape because half the revenue coming in and the costs are the same jim, im highly confident if we put another ppp bill up for a vote that had second payments for businesses that were down 50 that make sure we had money going for distressed and minority areas im highly confident wed have an overwhelming number of people on both sides of the aisle pass that normally in negotiation what you do is say lets agree on the things we can agree on and lets pass legislation so that the American People get the benefit of that whether its Small Business or schools or other things lets not hold up everything over a few things that we disagree on. Actually, this sounds much more positive than the way i felt this weekend. Let me ask you i know there is a belief that the 600 a week discourages employment but i have to question that isnt bogus given incredible job growth in may, june and july just when the checks are going out. Some sort of worry about the constitution and fiscal responsibility because i know these people are not unemployed because of their own fault well, jim, no question about that and the president wants to get every Single Person back to work who lost their job as you said, we got a lot of people back to work. The previous plan has worked we need to do more and we want to do more but let me just put this in perspective. During the financial crisis, we had a 25 top up in the Obama Administration for federal unemployment we put on the table a 400 top up we thought that was a fair compromise we also put on the table, by the way, 70 wage replacement up to the 600 for people who make more money and we think those are very fair because there wasnt legislation. The president went forward with executive authority. He wants to make sure those people who are unemployed no fault to their own get paid. Secretary mnuchin, david faber, specific to that new unemployment benefit or the one replacing the 600. 25 of it is supposed to come from the states and i know some question to whether the states have the wherewithall to provide that 600 from the state and 300 from the fed that 100 coming from the states, what do you say to those who question whether they have the fiscal wherewithall to pull that off . The 25 isnt coming from the states because were authorizing them to use money out of the 150 billion we just sent them so in essence all 100 is coming from the federal government. I have from every single state how much money they have left over they have plenty of money. And the answer is weve also said in new legislation well top that up. It wont cost them a dime. To the extent they use money out of those facilities now when we pass legislation, well make sure they get that money back. And on top of all of that, if theres some states that really have problems, the president has the ability to waive the 25 entirely so, what we need to do is we need to get legislation passed that helps the American Public get back to work all right well, specifically, back to your resistance to the trillion dollars that the congress or the house has passed in terms of aid for the states you know, ive heard the objections being about, well, we dont want states aiding their ailing pension fund systems and things like that arent there ways to make sure the money is used specifically to help states that are suffering huge budget deficits that are going to face huge layoffs as a result of reducing expenses arent there ways to go about spending that trillion to make sure it meets your objections . Well, let me just be clear. The trillion dollars is just an absurd number. Why is it an absurd number . Why is it absurd number, mr. Secretary . Again, i have data from the states let me first say that the states have money left from last time i have already given them flexibility and they can use that money for firefighters, policemen, first responders, Health Care Workers so there is no reason they need to lay off those people i have state by state how much money is left. So, theres plenty of money now and we put more money on the table. So, you know, certain states had Financial Issues coming into this because of bad policies i mean, new york keeps on raising their taxes and everybody is going to move out of new york. I saw your segment earl iier abu how with people working from home and remote locations, its going to be easier for businesses to move their headquarters out of some of these states let me tell you, florida has no problem and, by the way, i just spoke to the texas kentucky have a problem, too. I mean, its not just blue states and i know as a native new yorker it pains you to think about the fiscal strait straig your city and not just the blue states or those who have higher taxes, secretary let me just say i spoke to the governor of texas over the weekend just as an example, you know, thats obviously the largest state and based upon our proposal, i think they have more than enough money to cover the deficit. So, look, i understand new york has problems and, you know, i wish they didnt have financial problems i thinkthat perhaps the state should put in financial control board over the city because the city is really going in the wrong direction. And it reminds me of the 70s. I want to see new york city succeed. When you and i grew up there california is the largest state and may have a 50 billion budget deficit, i believe. I dont believe that is the number for california. That may be a multiyear number, but i dont think thats correct. Mr. Secretary, i wanted to talk about something yes, you are correct. My mistake texas is the second. So, i apologize for that thanks for Fact Checking i do love makes a mistake and comes out and says it. Thats how we all should be. Something that confuses me, mr. Secretary. You and i are completely in sync about the idea that the Small Business is really the backbone of the country, as is mr. Kudlow but when you do a payroll tax deferral what youre doing is just delaying the inevitable and the people who are most helped are the people who are employed isnt the problem the 31 million who arent employed . Jim, you keep on saying 30 million. Youre way too high. We have a lot of people back to work were far from the 30 million. But the answer is, we have too many people unemployed so, what we have to do is we have to do a combination of tax cuts and regulatory relief and direct help to, as you said, Small Businesses theyre 50 of the economy they can hire people back and we need to have stimulus with that. So, the direct checks are a very important part of economic stimulus they go to people who work and people who dont work and, by the way, people spent that money. Youve seen that in the retail sales numbers. And we need to then have a fair unemployment system for the people who cant get jobs. So, its a combination of an overall package. Thepresident s economic plan worked we had the best economy in the world. This covid terrible disease shut down the economy and now weve got to reopen it safely and get people back to work right i completely agree with that thats why im trying to figure out what is the point of the payroll tax deferral what we need is defer Small Business from having to pay rent they dont have lets go back were in a pandemic. You and i both know. Its a pandemic. Thats a war against an illness. When we get to where we defeat them in the war, then we are fine until then, Everybody Needs help who is in trouble. Lets say its 20 million unemployed if i add up the number of people who got jobs in the last three months. Isnt that the issue and shouldnt we give help to everybody or is there some level where you genuinely think we cant go in other words, some level the constitution cant allow them. Is there a limit to the countrys borrowing power . If there isnt, we have to get a bridge to where we have beaten covid19 obviously, there is some limit to what we can borrow. Were not at it now. And the president is determined to spend what we need to spend the 3 trillion we spent, plus a trillion dollars more is about 20 of gdp absolutely historic. Were prepared to put more money on the table there are things, as i said, that made sense to compromise. Weve compromised. Were not stuck at the 1 trillion but were not going to go to unlimited amounts of money to do things that dont make sense. But its not unlimited. I mean, i think thats hypehypey mr. Secretary. Certainly if this is a war, we cant split hairs. Its unfortunate jim, were splitting things that make sense to split so, let me be clear. You know, if i had started at zero and they had started at 10 trillion, would that have made sense to do a 5 trillion deal of course not. So, you dont just split the difference what you do is you go line by line and say lets agree where we can agree and youre right on things where we agree but were apart on money, we split the difference things like food, i listened to the speaker over the weekend shes right. We started low on food we realized there was a lot of kids out there that theres an issue. So, we agreed on more than enough money for this year and through most of next year on food we didnt make longterm policy changes in the middle of covid we did that. We can go down the list and thats what weve done but what were not going to do is say where there is really bad policy ideas, were not going to just split the difference. When are you guys planning on getting back together to talk . Do you have any idea again, im not going to comment on the specifics or the logistics of negotiations because i dont think thats helpful. You know, theres a deal to do if the democrats are reasonable and want to compromise and if their attitude is, you know, wed rather give you nothing than agree on things, then were not going to get a deal. But i heard pelosi over the weekend and schumer and i think thafr theyre willing to compromise again, if we can get a fair deal, well do it this week. But the president needed to take action hes not going to sit around we left the meeting on friday. Mark meadows and i reported back to him that we were no where and thats why he moved forward well, yeah, no where to somewhere would be good. While i got you, mr. Secretary Something Else the markets were certainly focused on is our relationship with china. You have been instrumental in negotiating a potential ban on tiktok in the u. S. And negotiations for a potential buyer of that business can you give us an update of that business. Is microsoft in position to buy tiktok or another buyer so it stays a viable business here in the United States . Im not going to comment on the specifics of microsoft negotiations or other parties. Im very proud that Congress Passed an updated legislation where now we have all the tools we need to use so we have both but its perfectly clear that theres 100 agreement both across republicans and democrats that we cant have an app like this thats collecting information on americans of this size and scale so, the president made perfectly clear. Its not going to continue to exist in this format and to the extent, there is an appropriate u. S. Buyer that can get us comfortable with the Security IssuesGoing Forward that deal will be approved if not, the president has given a deadline and it will be shut down mr. Secretary, when nancy pelosi said that youre basically heartless. It reached a level that we both agree is really terrible is there any way, the president just tweeted that Schumer Pelosi wants to make a deal amazing how it all works where they were the last four week s and they know my phone number can we ratchet it back i mean, look, this is a pandemic the country needs to get together how many states have 100,000 cases and 5 million cases in the country. This is not the time to f, the figure it out for working people in Small Business. That kind of rhetoric, youll make an effort to get that rhetoric to calm down. Well, jim, the issue isnt the rhetoric, the issue is the action so weve done four deals with the democrats on coronavirus we passed the u. S. Mca and we got a budget deal. When theyre reasonable, we can get deals done if theyre going to be unreasonable, were not going to get a deal done. But what is important is now is the time as we said in the middle of this covid crisis we need the democrats and republicans to come together we did this previous two times 96100 and 960 much more diversity of ideas and were not nearly in the same emergency that we were in last time but we still have more work to do and thats why we need to pass legislation lets start with education we all agree on education. Ive spoken to the governors i know how much money they need. The president will be more than happy to sign a stand alone Education Bill well, lets get that done. Lets not hold up our kids and lets not hold up our Small Businesses that need to get back to work. This is not about partisan politics lets focus on the kids and the jobs well, mr. Secretary, i know we have to leave, but am i wrong to have any hope here whatsoever i dont want to be pollyanna i mean, is it just better to say, listen, better luck next time jim, i dont speculates if theres a fair deal to do, well do a fair deal thats always been our approach. The president wants action thats his first choice. Theres a fair deal to do, well do it. Again, were not the ones who are holding this up. Were the ones who are saying, lets pass legislation that we can both agree on. All right, mr. Secretary. I do hope that something, look, the American People hope that something happens. Theres just too many people unemployed thank you so much for coming on cnbc, though youre always welcome because i know you represent a person who wants to get the job done. Mr. Secretary mnuchin, thank you so much. Thanks. Great to be with both of you bye. Are you at all optimistic there were some things at the beginning he said they could agree on i dont think that, i think it was just up to secretary mnuchin, i think it would be a deal i think youre right. But probably not right interesting comments. Yeah, financial control board from new york. Hes a child like me grew up in the 70s in new york he sees the boarded up building buildings. I mean its not that bad. Its not good. And the tax base is quickly leaving. You know what, jim, while we were having our interview Important News on mcdonalds involving ceo. Kate rogers has that mcdonalds is suing its former Ceo Steve Easterbrook in a filing this morning the company said it is suing for fraud, destroying and concealing evidence in order to retain compensation package and this is related to his firing last year. The suit says mcdonalds has now learned that easterbrook concealed evidence and lied about his wrongdoing recently identified evidence shows that easterbrook had physical, sexual relationships with three mcdonalds employees in the year before his termination that he approved an extraordinary stock grant worth hundreds of thousands of dollars for one of those employees in the midst of their sexual relationship and he was knowingly untruthful in 2019 the filing adds that an internal investigation into this allegation discovered photographic evidence that while he was ceo easterbrook had engaged in a physical in the year before his termination on the companys server that had not been deleted the point of