The FairTax, on paper, sounds simple: just replace all major sources of the federal government’s revenue—the individual income tax, corporate income tax, estate and gift taxes, and payroll tax—with a national sales tax.But when you pull back the curtains, this proposal leads to more questions than answers.Alan Cole, senior economist, makes his Deduction debut to talk us through why this old idea is gaining attention this year. He breaks down what the FairTax shows us about the debate between income taxes versus consumption taxes, and why “simple solutions” appeal to so many policymakers for how best to tax an increasingly complex economy.Links:https://taxfoundation.org/fair-tax-national-sales-tax/https://taxfoundation.org/fairtax-consumption-taxes/https://taxfoundation.org/tax-basics/value-added-tax-vat/Follow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodhttps://twitter.com/AlanMColehttps://twitter.com/solisjesse Support the show

The tax base around the world is shrinking for traditional excise taxes, including taxes on tobacco, alcohol, and motor fuel. But newer excise taxes on things like carbon, cannabis, and ride-sharing are on the rise.This trend has the potential to significantly affect the global economy.Adam Hoffer, Director of Excise Tax Policy, joins Jesse to discuss how excise taxes have been used by policymakers in the past and how that is changing. They discuss what makes a good design for these taxes and where excise taxes may go in the future as the traditional “sin tax” base continues to shrink.Links:https://taxfoundation.org/global-excise-tax-policy-application-trends/https://taxfoundation.org/unlock-global-growth-role-of-taxation/https://taxfoundation.org/principles#Stabilityhttps://taxfoundation.org/taxedu-video-cannabis/https://taxfoundation.org/taxedu-video-carbon-tax-explained/Follow us!https://twitter.com/AdamJHofferhttps://twitter.com/TaxFoundationhttps://twitter.com/deductionpodhttps://twitter.com/solisjesseSupport the show

When we discuss tax policy, the conversation inevitably turns to who pays, who should pay, and how much they should pay.Unfortunately, the tax burdens debate is often missing a key point: how income transfer programs—like Social Security or Medicaid—affect households’ tax burdens.When looking at the whole picture, just how progressive is our tax code? Timothy Vermeer, senior policy analyst, joins Jesse to take a closer look. They discuss what is missing from the progressivity debate, and what lawmakers at the state and federal level should keep in mind when they consider tax reforms and interstate competition.Links:https://taxfoundation.org/who-pays-taxes-federal-state-local-tax-burden-transfers/https://taxfoundation.org/question-1-massachusetts-millionaires-tax/Follow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodhttps://twitter.com/tevermeerhttps://twitter.com/solisjesseSupport the showSupport the show

President Biden recently released his budget proposal for fiscal year 2024. As he has with previous budgets, the president is continuing to call for higher taxes on businesses and wealthy taxpayers.This may be the last budget President Biden releases before he announces a run for a second term. The White House says this budget will reduce the deficit, strengthen Medicare, and will only target the well-off.But are those claims true? Erica York, senior economist, walks through the details with Jesse. They discuss what the economic impact of this budget would be and what parts stand a chance at actually becoming law.Links:https://taxfoundation.org/biden-budget-tax-proposals-analysishttps://taxfoundation.org/biden-budget-taxes/https://taxfoundation.org/biden-tax-fairness/https://taxfoundation.org/growth-opportunity-us-tax-reform-plan/Follow us!:https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodhttps://twitter.com/ericadyorkhttps://twitter.com/solisjesseSupport the showSupport the show

Affordable housing is an issue that has had long-standing bipartisan interest in D.C. But the path to increase the supply of affordable housing, though often well-intentioned, has created a bureaucratic nightmare.Large programs like the Low-Income Housing Tax Credit, and other initiatives like rehabilitation tax credits and grants, have created a web of complexity that makes these policies less helpful than they were meant to be.Garrett Watson, senior policy analyst, joins Jesse to break down the tax code’s relationship to affordable housing. He also discusses his testimony to the U.S. Senate about this topic, and where he thinks lawmakers should focus their efforts as they continue to debate these tax programs.Links:https://taxfoundation.org/expanding-affordable-housing/https://www.finance.senate.gov/hearings/tax-policys-role-in-increasing-affordable-housing-supply-for-working-familieshttps://taxfoundation.org/low-income-housing-tax-credit-lihtc/Follow us!https://twitter.com/deductionpodhttps://twitter.com/TaxFoundationhttps://twitter.com/GS_Watsonhttps://twitter.com/solisjesseSupport the show