The Deduction

Taxing wealth has become a hot-button issue in today’s political discourse, promising to reshape economic equality. But what are the real-world implications of such policies? In this episode, we dive into the contentious world of taxing wealth, examine how a progressive tax system aims to balance fairness and revenue generation, and explore the potential impacts and broader implications for economic policy and social equity.  Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, joins Kyle Hulehan to dissect the fundamentals of taxing wealth. They discuss the challenges of implementation, potential long-term consequences for the broader economy, and alternative policy options that could achieve progressivity while maintaining economic growth. Links: https://taxfoundation.org/blog/taxing-consumption-progressively-tax-the-wealthy/ https://taxfoundation.org/blog/federal-tax-code-progressive-rich/ https://taxfoundation.org/blog/us-pandemic-response-inequality-progressivity/ https://taxfoundation.org/research/all/federal/tax-fairness-funding-government-investments/ Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Tariffs are a hot topic this election cycle for both President Biden and former President Trump. But why are tariffs so popular despite their economic downsides? In this episode, we unpack tariffs’ role in the political playbook, their impact on manufacturing jobs and consumers, and the Biden administration's review of Trump-era tariffs. Erica York, Senior Economist and Research Director at the Tax Foundation, joins Kyle Hulehan to break down the basics of tariffs, explore historical tariff failures, and discuss the potential long-term effects of maintaining or increasing tariffs. Links: https://taxfoundation.org/research/all/federal/section-232-tariffs-steel-aluminum-2024/  https://taxfoundation.org/blog/biden-tariffs-china/ https://taxfoundation.org/blog/trump-biden-protectionism/ https://taxfoundation.org/blog/biden-trump-tariffs/  https://taxfoundation.org/blog/retaliatory-tax-trade-policies/ https://taxfoundation.org/blog/trump-china-trade-war-proposal/ https://taxfoundation.org/topics/tariffs-and-trade/https://taxfoundation.org/research/all/federal/tariffs-trump-trade-war/https://taxfoundation.org/blog/donald-trump-10-percent-tariff/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Get ready to hit the autobahn and explore the world of German taxes! We'll navigate the complexities of Germany’s corporate tax structure, including the combined federal and local rates, and unravel the complexities of local trade taxes and the real estate transaction tax, exploring their impact on businesses and property investments.  Alex Mengden, Global Policy Analyst, joins Kyle Hulehan to discuss Germany's unique federal system shaping state and local taxes, the intricacies of the value-added tax (VAT), and the substantial labor tax burden. Links: https://taxfoundation.org/data/all/eu/germany-trade-tax-rates/ Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Buckle up as we navigate the twists and turns of infrastructure and road funding. As electric vehicles gain traction, traditional gas taxes are running out of fuel to support our infrastructure budget. Today, we're exploring how Vehicle Miles Traveled (VMT) taxes pave a more equitable and sustainable path for funding road maintenance and construction. Adam Hoffer, the Director of Excise Tax Policy, joins Kyle Hulehan to unpack the challenges and opportunities of VMT taxes. They will explore the innovative technologies used for mileage tracking and address the significant privacy concerns involved. Links: https://taxfoundation.org/research/all/federal/road-funding-vehicle-miles-traveled-tax/https://taxfoundation.org/taxedu/glossary/gas-tax/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

 All taxes tell a story, and today we’ll explore how taxes influenced Bob Dylan's decision to sell his music catalog, how the "chicken tax" reshaped the auto industry, and how the historic "tax on air and light" had profound effects on architecture and living conditions. Scott Hodge, President Emeritus & Senior Policy Advisor at the Tax Foundation, joins host Kyle Hulehan to discuss his new book, Taxocracy: What You Don’t Know About Taxes and How They Rule Your Daily Life. Links: https://www.amazon.com/Taxocracy-What-About-Taxes-Daily/dp/B0CL3BXBVS Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

All Americans are affected by the tax code—but do they understand the tax code? To find out, the Tax Foundation’s educational program, TaxEDU, and Center for Federal Tax Policy conducted a poll with Public Policy Polling. The poll surveyed more than 2,700 U.S. taxpayers over 18 years old—spanning the political spectrum and income distribution—to gauge Americans’ knowledge of basic tax concepts and opinions of the current tax code. The results: most Americans are confused by and dissatisfied with the federal tax code.   Links:  https://taxfoundation.org/blog/national-tax-literacy-poll-education/ Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

 In the context of the 2024 election year, what does President Biden's 2025 budget proposal signify regarding his strategies and priorities as he seeks reelection? And how could these proposals shape the overall landscape of this election cycle? Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, joins Kyle Hulehan to discuss the president’s plan—from raising the corporate tax rate to implementing a billionaires' tax—and the longstanding flaws in the budget process.  Links: Taxing Consumption Progressively Is a Better Way to Tax the WealthyHow Taxing Consumption Would Improve Long-Term Opportunity and Well-Being for Families and ChildrenTax Calculator: How the TCJA’s Expiration Will Affect YouDetails and Analysis of Making the 2017 Tax Reforms PermanentHow to Rein in the National DebtSupport the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

 Today, we're examining the differences between the broad incentives provided by the Tax Cuts and Jobs Act and the targeted approach of the Inflation Reduction Act and the CHIPS and Science Act.  Alex Muresianu, Senior Policy Analyst at the Tax Foundation, joins Kyle Hulehan to explore these policies' intentions, tangible effects on specific sectors, and impact on the broader U.S. economy.   Links:  https://taxfoundation.org/research/all/federal/supply-side-economics-industrial-policy/ Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

 As the world of tax policy becomes more interconnected, the Tax Foundation is stepping up, recognizing the pressing need for informed and principled tax policy education in an ever-evolving landscape.  In response, we are broadening our scope by establishing a presence at the epicenter of European tax policy discussions: Brussels.  Sean Bray, Director of European Policy at the Tax Foundation, and Edwin Visser, Deputy Global Tax Policy Leader at PwC Netherlands, join Kyle Hulehan to discuss the launch of Tax Foundation Europe.  Links:  https://taxfoundation.org/blog/tax-foundation-europe-launches/  https://taxfoundation.org/eu/  https://taxfoundation.org/eu/research/european-tax-policy-scorecard/  https://taxfoundation.org/research/all/eu/eu-green-transition-tax-policy/  https://taxfoundation.org/research/all/eu/capital-gains-taxation-eu/ Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Sales taxes go beyond a few extra bucks at the register. It’s not just about what you pay, but who pays. What are the implications of state sales tax bases across the U.S.? Katherine Loughead, Senior Policy Analyst & Research Manager at the Tax Foundation, joins Kyle Hulehan. Together, we'll uncover the core principles behind an efficient sales tax system and examine how taxing business inputs can lead to economic inefficiencies and higher prices for consumers.  Links:  https://taxfoundation.org/research/all/state/kentucky-sales-tax-reform/ https://taxfoundation.org/data/all/state/2024-sales-taxes/  https://taxfoundation.org/taxedu/glossary/tax-pyramiding/ Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show