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00:00CONFERENCE ON REAL ESTATE AND FINANCE. I WILL BE WALKING AROUND LATER TO SEE IF WE CAN FIND THAT BUYER. I DON ' T KNOW IF IT IS SCOTT RECHLER OF RXR REALTY. WE WERE TALKING ABOUT THE DA VINCI PAINTING. SCOTT: I WOULD RATHER BUY A PIECE OF REAL ESTATE. JASON: A LOT OF ATTENTION BEING PAID TO TAX REFORM. THERE ARE SOME IMPLICATIONS FOR THE INDUSTRY, BUT WHAT DO YOU MAKE OF IT? SCOTT: THE COUNTRY NEEDS TAX REFORM. I WOULD NOT HAVE STARTED WITH TAX REFORM AS THE ADMINISTRATION HAS. IT SEEMS VERY CHALLENGING TO GET DONE. THERE ARE WINNERS AND LOSERS. BIG BUSINESSES VERSUS SMALL BUSINESSES. STATE VERSUS STATE. THE ELIMINATION OF THE STATE AND LOCAL TAX CREATES THIS DOUBLE TAXATION THAT KILL STATES LIKE NEW YORK, CALIFORNIA AND NEW JERSEY. I WISH THEY HAD STARTED WITH INFRASTRUCTURE. THAT IS AN INVESTMENT IN OUR FUTURE. 1.7 TRILLION DOLLARS BEING USED TO REDUCE CORPORATE TAX RATES SHOULD BE GOING INTO OUR BRIDGES AND TUNNELS AND CLEAN WATER. THAT WOULD BE SOMETHING THAT HELPS US DRIVE OUR ECONOMY. BY NOT DOING THAT, WE ARE TAXING OUR CHILDREN BECAUSE EVENTUALLY, WE HAVE TO MAKE THAT INVESTMENT. I WOULD RATHER TAX MYSELF THEN HAVE OUR CHILDREN BE TAXED IN THE FUTURE. JASON: LET ' S TALK ABOUT INFRASTRUCTURE. THAT IS SOMETHING THE ADMINISTRATION HAS TALKED ABOUT SINCE DAY ONE. NOTHING HAS HAPPENED YET. HOW CONFIDENT ARE YOU THAT THAT IS ON THE FRONT BURNER OR ON THE MINDS OF THIS ADMINISTRATION? SCOTT: IF TAX REFORM IS PAST, IT IS UNLIKELY YOU WILL HAVE A INFRASTRUCTURE BILL OF ANY MEANING. A LOT OF THE $1.5 TRILLION WILL BE USED IN REPATRIATION. IT IS GOING TO BE USED ON THIS TAX REFORM BILL. IT IS MAKING THE DECISION TO BASICALLY CUT TAXES TODAY AND EFFECTIVELY TAX US IN THE FUTURE. JASON: INFRASTRUCTURE IS OBVIOUSLY ON YOUR MIND BECAUSE OF WHAT YOU DO FOR A LIVING BUT ALSO BECAUSE YOU WERE ON THE PORT AUTHORITY. WHAT IS THE STATE OF INFRASTRUCTURE IN NEW YORK? SCOTT: INFRASTRUCTURE IN NEW YORK CITY IS IN DIRE STRAITS. THERE HAS BEEN WILLFUL UNDER -- WILLFUL UNDERINVESTMENT. WE ARE LIVING ON BORROWED TIME. IT AVERAGE 50 -- IT AVERAGES 50 YEARS TO 100 YEARS OLD. AT ANY MOMENT, YOU COULD SEE SOME COLLAPSE OF SOMETHING, WHETHER IT IS A TUNNEL THAT HAS TO SHUT DOWN AND 75% OF THE WORKFORCE THE COMES IN THE NEW YORK CITY CANNOT GET IN -- THAT COMES IN TO NEW YORK CITY CONNECTED IN. IT DRIVES THE ECONOMIC ENGINE OF THE CITY AND IS ALSO THE ACHILLES ' HEEL. JASON: IF NOTHING HAPPENS FROM A FEDERAL LEVEL, WHAT IS GOING TO HAPPEN TO FIX THAT INFRASTRUCTURE HERE? SCOTT: WE HAVE BEEN FORTUNATE THAT GOVERNOR CUOMO IS VERY FOCUSED. WILL BE THE MOST INFRASTRUCTURE FOCUSED GOVERNOR THIS STATE HAS HAD. SOME OF THAT IS RELIANT ON FEDERAL FUNDING, AND SOME IS RELIANT ON STATE FUNDING AND USER FEES. WE NEED TO REALIZE THAT WE NEED TO PAY FOR INFRASTRUCTURE, SO THERE ARE TOPICS LIKE CONJECTURE PRICING THAT ARE BEING RAISED TODAY, WHERE WE CREATE SUSTAINABLE REVENUE SOURCES FOR INFRASTRUCTURE. JASON: PEOPLE STILL DO LOVE REAL ESTATE, COMMERCIAL, RESIDENTIAL. WHAT IS THE SUPPLY DEMAND RIGHT NOW, ESPECIALLY ON COMMERCIAL? SCOTT: ONE OF THE CHALLENGES WE

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Infrastructure is New York's Achilles Heel, Says Rechler

RXP Realty Chief Executive Officer Scott Rechler discusses tax reform and the need for investment in infrastructure. He speaks with Bloomberg's Jason Kelly on "Bloomberg Daybreak: Americas." (Source: Bloomberg)

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