×

FIRST ON CNBC: CNBC TRANSCRIPT: CNBC'S ERIN BURNETT & MARK HAINES INTERVIEW CONGRESSMAN CHARLES RANGEL CHAIRMAN OF THE HOUSE WAYS AND MEAN COMMITTEE TODAY ON "SQUAWK ON THE STREET"

WHEN: TODAY, THURSDAY, MARCH 19TH

WHERE: CNBC'S "SQUAWK ON THE STREET"

Following is the unofficial transcript of a FIRST ON CNBC interview with Congressman Charles Rangel Chairman of the House Ways and Means Committee today on CNBC's "Squawk Box."

All references must be sourced to CNBC.

----------------------------------------------------------------

BURNETT: A VOTE IS SCHEDULED TODAY ON A BILL THAT WOULD SLAP A 90% TAX ON BONUSES PAID BY COMPANIES THAT HAVE RECEIVED MORE THAN $5 BILLION IN TARP FUNDS AND IT WOULD APPLY TO EMPLOYEES WHO HAVE INCOMES OVER $250,000 JOINING US IS THE MAN WHO INTRODUCED THE LEGISLATURE THE AUTHOR DEMOCRATIC REPRESENTATIVE CHARLES RANGEL OF NEW YORK CHAIRMAN OF THE HOUSE WAY & MEANS COMMITTEE WHICH SETS TAX POLICY CHAIRMAN THANK YOU FOR BEING WITH US AND I WANT TO START OFF SIR IF I COULD I WANT TO CLARIFY A VERY IMPORTANT QUESTION ON THIS ARE YOU GOING TO BE APPLYING THIS TAX TO CASH BONUSES OR ALSO TO STOCK

RANGEL: IM SORRY I DIDN'T HEAR THE QUESTION

BURNETT: OH I'M SORRY IS IT GOING TO APPLY TO JUST CASH BONUSES OR ALSO TO BONUSES IN THE FORM OF STOCK

RANGEL: YOU KNOW IT'S VERY LOUD HERE BUT LET ME MAKE IT CLEAR IF ANYONE RECEIVED BONUSES AND AT THE SAME TIME WORKED FOR A CORPORATION THAT RECEIVED $5 BILLION IN TARP FUNDS THEY WOULD BE SUBJECTED TO AS YOU SAID A 90% TAX ON THAT BONUS THE REGULAR INCOMES WILL BE AT THE REGULAR 35% BASIS IF HOWEVER THE BONUS AND THE SALARY IS $250,000 OR LESS THEN OF COURSE THEY WOULD NOT BE SUBJECTED TO THE HIGHER TAX

BURNETT: CONGRESSMAN RANGEL YOU WERE QUOTED IN A STORY I SEE HERE IN BLOOMBERG YOU WERE ASKED HOW YOU REACHED THE 90% TAX FIGURE YOU SAID QUOTE WE FIGURE THE STATE AND LOCAL GOVERNMENTS WILL TAKE CARE OF THE OTHER 10% THE PRESIDENT HAS SAID THAT HE DOES NOT WANT TO GOVERN OUT OF ANGER BUT THIS SOUNDS SORT OF LIKE YOU ARE DOING JUST THAT

RANGEL: I DON'T KNOW ANGER IS SUCH A SUBJECTIVE WORD THERE'S OUTRAGE OUT THERE DID IT CAUSE US TO HAVE CONCERN YOU BET YOUR LIFE BUT WHEN PEOPLE VIOLATE THE PUBLIC TRUST RECEIVE FEDERAL FUNDS WE AS A CONGRESS MUST BE GUIDED BY PROTECTING THE AMERICAN PEOPLE AND OUR CONSTITUENTS AND YES IT WAS A RESPONSE WAS MOTIVATED BY CONCERN IN STOPPING THIS TYPE OF WRONGFUL BEHAVIOR THE WHOLE IDEA THAT PEOPLE BASED ON GREED CAN SHATTER THE LIVES OF PEOPLE IN COMMUNITIES OUR COUNTRY MAYBE THE WORLD AND YET BE REWARDED FOR IT IS REPUGNANT TO EVERYTHING THAT I CAN THINK OF SO I DON'T KNOW ABOUT ANGER BUT I DO KNOW THAT WE HAVE A RESPONSIBILITY TO RESPOND AND SO WE ARE THIS MORNING

HAINES: CONGRESSMAN HERE'S THE PROBLEM IT SEEMS TO ME THIS IS THE WAY WALL STREETERS AND PEOPLE IN COMPANIES LIKE AIG HAVE BEEN COMPENSATED FOR DECADES THE ACTUAL SALARY EVEYONE UNDERSTOOD WAS REALLY A TOKEN AND THE BULK OF THE COMPENSATION THAT A PERSON EXPECTED CAME IN THE FORM OF A BONUS NOW YOU CAN ARGUE WHETHER THAT IS RIGHT OR WRONG BUT NONE THE LESS YOU ARE SUDDENLY CHANGING DRAMATICALLY IN THE MIDDLE OF THE GAME FOR A LOT OF THESE PEOPLE AND ARE YOU NOT CONCERNED THAT YOU WILL CHASE AWAY FROM THESE COMPANIES THE VERY PEOPLE THEY NEED TO REBUILD THEMSELVES

RANGEL: NOT IN THE LEAST THAT FORM HABIT IN TERMS OF HOW THEY HAVE BEEN COMPENSATED MAY WORK IN GOOD TIMES BUT WHEN YOU ARE DIRECTLY RESPONSIBLE ADMIT THESE MISTAKES THAT SHATTER THE HOPES AND DREAMS OF SO MANY PEOPLE AND THEN ON TOP OF IT AFTER YOU HAVE DONE THIS YOU RECEIVE $6MILLION DOLLARS IN BOUS WHICH YOU ARE TRYING TO SAY IS DIRECT FORM OF INCOME WE HAVE GOT TO SAY DOES IT REALLY MAKE ANY DIFFERENCE HOW YOU GOT IT YOU ARE NOT TO RECEIVE THAT TYPE OF COMPENSATION AFTER YOU HAVE DESTROYED OUR ECONOMY AND THAT'S THAT AND WE HOPE THAT THIS DOESN'T COME UP AGAIN

BURNETT: CONGRESSMAN RANGEL WHEN YOU PROPOSE TAX LEGISLATION THAT'S RETOACTIVE IN A SENSE THAT IS DESTROYING THE ECONOMY ISN'T IT NOBODY CAN EVEN DECIDE HOW THEY'RE GOING TO SPEND MONEY OR INVEST IF LAWMAKERS ARE GOING TO COME IN AND GO GUESS WHAT WHAT YOU EARNED BEFORE FORGET ABOUT IT ISN'T THAT DESTRUCTIVE FOR AN ECONOMY

RANGEL: I CAN TELL YOU ONE THING I HAVE VIOLENTLY OPPOSED ANY RETROACTIVE LEGISLATION EXCEPT I THINK THIS IS A VERY UNUSUAL SITUATION I WANT TO MAKE IT ABUNDANTLY CLEAR THIS IS ONLY A TAX ON INCOME THAT IS RECEIVED IN 2008 AND SO WE ARE NOT GOING BACK TO CAPTURE ANY RETROACTIVE TAX ON SOMETHING THAT HAD A MUCH LOWER TAX RATE EARLY

BURNETT: IT IS ON ANYTHING PAID AFTER 12/31/08 WHICH WOULD INCLUDE MOST OF THE WALL STREET BONUSES PAID THIS YEAR

RANGEL: WELL WE'RE NOT GOING BACK AFTER THEM WE'RE SAYING THIS IS WHAT THE TAX IS FOR THIS YEAR THAT'S NOT RETROACTIVE

BURNETT: BUT THEY MADE THE DECISION ON HOW TO PAY IT PARTICULARLY STOCK VS CASH BASED ON A RATE THAT YOU ARE GOING TO TRIPLE

RANGEL: WHEN YOU VIOLATE THE PUBLIC'S TRUST DIFFERENT RULES APPLY THE SAME THING WE HAVE IN CHARITABLE ORGANIZATIONS 501C3 WHEN THEY HAVE EXCESSIVE PAYMENT IN CERTAIN AREAS WHERE WE ARE ABLE TO PENALIZE THEM FOR IT

HAINES: ALL DO RESPECT CONGRESSMAN WHEN YOU TALK ABOUT VIOLATING THE PUBLIC'S TRUST YOU'VE HAD SOME TAX ISSUES OF YOUR OWN

RANGEL: WELL I WOULDN'T THINK THAT YOU WOULD KNOW WHAT THEY ARE SINCE WHAT I DID OR DID NOT IS BEING INVESTIGATED BY A COMMITTE BY ME SO WHAT YOU'RE DOING IS REPORTING ON WHAT A REPORTER SAYS BECAUSE YOU HAVE NO CLUE AS TO WHAT PROBLEMS IF ANY I HAVE

HAINES: SO ALL OF THE REPORTS IN THE PRESS WERE ERONIOUS

RANGEL: ALL OF THE REPORTS IN THE PRESS HAVE BEEN SENT TO A CONGRESSIONAL COMMITTEE THAT I ASKED TO BE SENT TO

BURNETT: BUT SIR TO BE CONSISTENT I KNOW THAT THESE ARE UNDER INVESTIGATION THAT THERE'S AN ETHICS INVESTIGATION RIGHT NOW BUT TO BE CONSISTENT WOULDN'T YOU DURING THE DURATION OF THAT STEP ASIDE FROM SETTING TAX POLICIES SINCE THEY'RE INVESTIGATION YOUR TAX PAYMENTS

RANGEL: I DON'T PAY TOO MUCH ATTENTION TO IRRESPONSIBLE REPORTERS WHO WOULD PUT INACCURACIES THAT I KNOW ARE GOING TO BE IN THE FINAL EXONERATED IF EVERYTIME A REPORTER DECIDES TO THAT THEY WANT TO ATTACK SOMEONE WHETHER THEY CALL IT TAXES WHETHER THEY CALL IT ETHICS AND THAT PERSON STEP ASIDE WE DEFINE REPORTERS REALLY GOVERNING THE HOUSE OF REPRESENTATIVES ETHICS COMMITTE IS INVESTIGATING THE ACCUSATIONS MADE BY A REPORTER PICKED UP BY OTHER REPORTERS I'M NOT THINKING ABOUT STOPPING MY RESPONSIBILITIES A MEMBER AND CHAIRMAN OF THE COMMITTEE BECAUSE OF A REPORTERS REPORT

BURNETT: CONGRESSMAN RANGEL ARE YOU GOING TO COME OUT THEN AND SAY AM LOOKING AT SEVERAL REPORT FROM THE NEW YORK TIMES THAT YOU DID PAY INTEREST ON YOUR MORTGAGE IN THE DOMINICAN REPUBLIC EVERY YEAR IN THAT DECADE THAT IT WAS REPORTED THAT YOU DIDN'T THAT YOU DID REPORT THE $75,000 IN RENTAL INCOME FROM THAT VILLA THAT YOU DIDN'T HAVE TWO RESIDENCES AND TAKE A RENT STABLILIZED APARTMENT IN NEW YORK WHICH WOULD BE AGAINST THE LAW

RANGEL: YOU KNOW IF I TELL YOU THAT AT THE END OF THE DAY THAT I WILL BE EXONERATED OF THESE CHARGES YOU JUST COULD ASK THE QUESTIONS OVER AND OVER I AM TELLING YOU THAT YOU HAVE TO HAVE SOME CONFIDENCE IN THE HOUSE ETHICS COMMITTEE WHERE WE WILL HAVE REPUBLICANS AND DEMOCRATS SO I AM NOT TELLING YOU ANYTHING EXCEPT ACCUSATIONS FALSE ACCUSATIONS HAVE BEEN MADE BY A REPORTER AND PICKED UP BY OTHER REPORTERS AND PEOPLE LIKE YOU ASKING ME QUESTIONS WHERE THE ONLY THING THAT YOU HAVE IS NOT THAT ANYONE EXCEPT THE REPORTER HAS SAID IT THERE HASN'T BEEN ANY GOVERNMENT AGENCY THAT LOOKED FOR THIS AND SO REPORTERS ARE REPORTING ON REPORTS ASKING ME QUESTIONS IN ORDER TO ELIMINATE ALL OF THAT I SENT IT TO THE ETHICS COMMITTEE

HAINES: ALL RIGHT I WILL TELL YOU WHAT POINT TAKEN AND THIS WAS NOT OUR INTENT WE JUST SORT OF GOT SIDETRACKED HERE

RANGEL: I'M NOT SIDETRACKING YOU ARE

HAINES: YEAH RIGHT I

RANGEL: I CAME ON HERE TO TALK ABOUT THE TAX AGAINST BONUSES

HAINES: IT WAS A QUESTION I ASKED OK

RANGEL: OK

HAINES: AND IT SEEMED LIKE A GOOD QUESTION TO ASK AT THE TIME BASED ON WHAT YOU WERE SAYING HOWEVER LET'S GET BACK TO WHAT I REGARD AT ANY RATE THE FUNDAMENTAL ISSUE AND THAT IS I KNOW IT IS POLITICALLY UNPOPULAR AND POLITICALLY INCORRECT I KNOW IT GOES AGAINST ALL THE POPULIST INDIGNATION THAT'S OUT THERE RIGHT NOW BUT YOU CAN'T REALLY IT SEEMS TO ME EXPECT THAT THESE WALL STREET COMPANIES ARE GOING TO BE RUN WELL BY A BUNCH OF PEOPLE THAT DON'T MAKE MORE THAN $250,000

RANGEL: THE ONLY REASON THAT $250,000 WAS USED IS THAT WE DIDN'T WANT TO GET THE NORMAL BONUSES BUT WHAT PEOPLE THINK ARE NORMAL BONUSES THAT IS THE COMPANY DID WELL YOU DID EXTREMELY WELL WE WANT TO GIVE YOU 10, 15 100,000 DOLLARS SO WE JUST WANTED TO MAKE IT ABUNDANTLY CLEAR AS WE COULD UNDER THE LAW THAT WE ARE NOT TALKIKNG ABOUT THIS GROUP OF PEOPLE FOR THOSE ALBEIT WHETHER THEY SEE THEIR COMPENSATION IN LARGE NUMBERS BASED ON BONUSES WELL LISTEN THESE ARE THE PEOPLE THAT DID NOT QUALIFY ACCORDING TO US TO BE ELIGIBLE FOR BONUS THEY DID NOT DO THEIR JOB SO WELL THAT THEY SHOULD BE A BONUS AS A MATTER OF FACT SOME TOOK THEIR MONEY AND LEFT AND WE HAVE LIMITED TOOLS THERE ARE OTHER COMMITTEES LOOKING AT THIS TO DETERMINE BUT SAYING THAT YOU DESERVE A BONUS WHEN YOU HAVE COMMITTED SUCH WRONG-DOING DEFIES TAX PAYERS UNDERSTANDING OF WHAT A BONUS IS WHAT YOU'RE TALKING ABOUT IS INSIDE BASEBALL WE DON'T KNOW HOW THIS HAPPENED TO US ALL WE KNOW IS THEY BETTER CHANGE NOT THEIR METHOD OF REWARDING PEOPLE BUT CHANGE THEIR METHOD OF CONGRATULATING PEOPLE WHEN TRAGEDIES LIKE THIS HAPPEN TO OUR GREAT COUNTRY

BURNETT: CONGRESSMAN RANGEL THANKS VERY MUCH

RANGEL: THANK YOU BE THERE TO COVER THE ETHICS COMMITTEE NOW

HAINES: WE WILL

BURNETT: WE WILL A FAIR POINT

RANGEL: THANK YOU



About CNBC:
CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.