The Deduction

Hosted by Tax Foundation

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122

Latest episode

Aug 2026

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EN-US

About the show

The Deduction is your guide to the complicated world of tax and economics. From the impacts of tariffs and trade wars to debates over who pays and how much, each episode, our experts untangle another aspect of the tax code. Listen to the leading tax podcast! Have a question for one of our experts, let us know here: https://taxfoundation.org/mailbag. Follow us on Twitter @deductionpod: https://twitter.com/deductionpod

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September 28, 202634 min

California's Wealth Tax Explained (And Why It Might Fail)

California's billionaire tax is on the ballot this November, and it raises more questions than answers. From lost government revenue to legal battles that could drag on for years, what would this first-in-the-nation wealth tax actually do? Hosts Kyle Hulehan and Erica York are joined by Tax Foundation Senior Fellow Jared Walczak to break down what the measure could mean for California's budget, economy, and taxpayers. They cover the risk to state revenue that funds public education, the effects on businesses and startups, the valuation and constitutional challenges ahead, why wealth taxes failed across Europe, and whether California would ever collect a dime. 0:00 Preview: What if California has to refund it all? 0:15 What is California's Billionaire Tax Act (Prop 40)? 2:30 Lessons from Europe: Why 11 of 14 wealth taxes were repealed 4:40 Why are wealth taxes so hard to enforce? 7:00 Legal vulnerabilities: Retroactivity and snapshot residency 10:45 Commerce Clause problems: Apportionment and fair relation 12:50 Has the U.S. ever had a wealth tax? 15:05 Economic effects: Taxing stocks vs. flows 18:20 Does "one-time" really mean one time? 20:55 The cost of billionaire migration and lost innovation 21:20 Can California actually administer this tax? 22:50 Steep penalties for taxpayers and appraisers 24:15 No rules, tight deadlines 25:30 Voting vs. economic interest: The founder problem 28:15 What happens to California's finances? 29:00 The $100 billion revenue estimate vs. reality 31:40 Litigation and the refund risk 33:55 Wrap-up Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

August 31, 202642 min

Going Bold: Paul Ryan & Kevin Brady on Tax Reform

Ten years ago, then-Speaker Paul Ryan and Ways and Means Chairman Kevin Brady released the “Better Way” Tax Plan, the blueprint that would eventually become the Tax Cuts and Jobs Act of 2017—the largest overhaul of the US tax code in over 30 years. With the national debt climbing, Social Security heading toward insolvency, and tariffs reshaping the economy, the next round of reforms will demand bold ideas and a serious look at the trade-offs they carry. In this special anniversary episode of The Deduction , hosts Erica York and Kyle Hulehan sit down with the plan’s original architects to talk through how it came together, the bold bets they made (and the ones that didn’t pan out, like the border adjustment tax), what a decade of hindsight reveals about its economic impact, and where tax reform goes from here. GUESTS: Paul Ryan—Former Speaker of the U.S. House of Representatives; former Chairman, House Ways and Means Committee Kevin Brady—Former Chairman, House Ways and Means Committee HOSTS: Erica York & Kyle Hulehan, Tax Foundation TIMESTAMPS: 0:00 – Cold Open: The Walgreens Story 0:35 – Welcome to The Deduction 1:19 – How the Better Way Tax Plan Began 3:12 – Becoming Speaker and Ways & Means Chair 4:57 – Why They Decided to "Go Bold" 6:18 – The Vision: Ending Corporate Inversions 7:33 – Destination-Based Cash Flow Tax & Border Adjustment 9:58 – Designing a Tax Code Built for Growth 10:53 – The 2019 Results: Wages, Poverty & Inequality 14:01 – Why Border Adjustment Didn't Survive Politically 19:37 – The Corporate Rate as the "Crown Jewel" 22:14 – Stopping the Inversion Wave 23:36 – What's the Next Motivator for Tax Reform? 25:22 – Kevin's Wishlist: What They'd Still Change 27:21 – House vs. Senate: What Got Left on the Table 28:57 – Revenue Neutrality and the National Debt 30:38 – Winning Over Industry: Building Trust 32:10 – The Case for Entitlement Reform 34:07 – Fixing a Broken Budget Process 38:23 – Final Thoughts: Why Think Tanks Matter 39:51 – The Tax Foundation's Role Then and Now Subscribe to The Deduction for more conversations on tax policy and economics. Learn more at TaxFoundation.org Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

April 28, 202619 min

Is America Financially Illiterate? The Numbers Are Alarming

Most Americans don't understand how the tax code works, and it's costing them. In this episode of The Deduction, host Kyle Hulehan sits down with Zoe Callaway, VP of Education at Tax Foundation, to talk about tax and financial literacy in America. They dig into the results of Tax Foundation's national survey on tax literacy, the most stubborn misconceptions people have about taxes (including one that nearly made a teacher turn down her own promotion), and what's happening in high school classrooms across the country. They also connect everyday tax confusion to bigger policy questions, from tariffs to tax refunds. 📧 Questions? Email us at podcast@taxfoundation.org 🐦 DMs: @DeductionPod on Twitter 💬 Drop a comment below! Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

April 8, 202641 min

You Might Owe Taxes in a State You Don’t Live In

Should you have to file a tax return in a state where you babysat for one hour? In 22 states, the answer is technically yes. In this episode of The Deduction, host Kyle Hulehan and co-host Erica York sit down with Katherine Loughead, Director of State Tax Projects at the Tax Foundation, to break down the tangled mess of state nonresident income tax laws — and why they're a growing problem in the remote work era. Katherine walks us through how credits for taxes paid to other states are supposed to prevent double taxation, why "convenience rules" in 8 states can saddle remote workers with two full tax bills, how a wild patchwork of filing thresholds creates confusion for workers and employers alike, and what reforms states should adopt to simplify the system. 📄 READ THE FULL PAPER: "Nonresident Income Tax Filing and Withholding Laws by State, 2026" https://taxfoundation.org/data/all/state/nonresident-income-tax-filing/ 📄 RELATED: "State Individual Income Taxes on Nonresidents: Remote Work & Hybrid Work" https://taxfoundation.org/research/all/state/state-income-taxes-nonresidents/ 📄 "How Burdensome Are Your State's Nonresident Income Tax Filing Laws?" (Interactive Map) https://taxfoundation.org/data/all/state/nonresident-income-tax-filing-laws/ 📄 Mobile Workforce State Income Tax Simplification Act https://taxfoundation.org/blog/complicated-state-taxes-business-travelers/ ——— HOSTS & GUEST: Kyle Hulehan — Host, Senior Marketing Associate & Creative Producer Tax Foundation: https://taxfoundation.org/about-us/staff/kyle-hulehan Erica York — Co-Host, Vice President of Federal Tax Policy Tax Foundation: https://taxfoundation.org/about-us/staff/erica-york Twitter/X: https://twitter.com/ericadyork LinkedIn: https://linkedin.com/in/erica-york-a68ab474 Substack: https://ericadyork.substack.com Katherine Loughead — Guest, Director of State Tax Projects Tax Foundation: https://taxfoundation.org/about-us/staff/katherine-loughead Twitter/X: https://twitter.com/KELoughead LinkedIn: https://linkedin.com/in/katherine-e-loughead-6020a568 ——— FOLLOW THE DEDUCTION: Twitter/X: https://twitter.com/deductionpod FOLLOW TAX FOUNDATION: Website: https://taxfoundation.org Twitter/X: https://twitter.com/TaxFoundation 📬 Have a question? Email us at podcast@taxfoundation.org or DM @DeductionPod on Twitter. #taxes #remotework #statetaxes #taxfiling #incometax #taxreform #taxfoundation #deduction #podcast #workfromhome Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

April 2, 202639 min

One Year After "Liberation Day," Did Trump's Tariffs Deliver?

On April 2, 2025, President Trump announced sweeping "reciprocal" tariffs on Liberation Day, promising an investment boom, massive revenue, debt reduction, and lower prices. One year later, Kyle Hulehan and Erica York dig into the data to see how those promises held up. 0:00 - Liberation Day speech recap 2:00 - Were the tariffs actually "reciprocal"? 5:30 - The real math behind the tariff formula 10:00 - Market reactions and policy chaos 14:00 - The promised investment boom that never arrived 17:30 - Tariff revenue vs. projections and the national debt 22:00 - Who actually paid the tariffs? 25:30 - Business uncertainty and real-world impacts 29:30 - Could any version of these tariffs have worked? 36:00 - The five broken promises of Liberation Day 37:00 - What comes next after the Supreme Court ruling Resources: Tax Foundation Tariff Tracker: https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/ Tax Foundation Trade & Tariff Research: https://taxfoundation.org/research/all/federal/topics/trade/ Subscribe to the Tax Foundation: https://taxfoundation.org/subscribe/ Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

March 11, 202637 min

Should We Tax Artificial Intelligence?

AI is everywhere, and now it's in the tax policy debate. In this episode of The Deduction, hosts Kyle Hulehan and Erica York sit down with Alex Muresianu, Senior Policy Analyst at the Tax Foundation. Together they examine what current labor market data actually shows, why proposals from Senators Sanders and Kelly risk backfiring, and what smarter reforms like worker retraining deductions and consumption-based taxation would strengthen the tax code no matter how the AI story unfolds. Connect with the Guests Kyle Hulehan — Host, Senior Marketing Associate and Creative Producer Tax Foundation: taxfoundation.org/about-us/staff/kyle-hulehan Erica York — Co-Host, Vice President of Federal Tax Policy Tax Foundation: taxfoundation.org/about-us/staff/erica-york Twitter/X: @ericadyork LinkedIn: linkedin.com/in/erica-york-a68ab474 Substack: ericadyork.substack.com Alex Muresianu — Senior Policy Analyst, Federal Tax Policy Tax Foundation: taxfoundation.org/about-us/staff/alex-muresianu Twitter/X: @ahardtospell LinkedIn: linkedin.com/in/alex-muresianu-2b1802181 Related Reading "When Taxing AI, Don't Reinvent the Wheel" — Alex Muresianu, Tax Foundation The Deduction Podcast Questions? Email: podcast@taxfoundation.org | Twitter: @DeductionPod Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

February 25, 202618 min

Trump Tariffs Blocked by the Supreme Court (What’s Next?)

Last Friday, the Supreme Court struck down President Trump’s IEEPA tariffs in a landmark 6-3 decision. In this episode of The Deduction, hosts Kyle Hulehan and Erica York break down what the ruling actually means, from how collections could be refunded to how the administration is already scrambling to put new tariffs in place. Erica walks through why businesses may face even more uncertainty in the near term as a messy patchwork of replacement tariffs takes shape. --- TIMESTAMPS: 0:00 – Weekend tariff chaos and IEEPA "pdu" 2:00 – What the Supreme Court decided on IEEPA tariffs 4:36 – Which tariffs were struck down (Liberation Day, fentanyl, and more) 5:42 – Will importers get refunds on $160 billion in unlawful collections? 7:54 – Does the ruling improve the economic outlook? 9:00 – What tariff authority does the president still have? 9:42 – Updated Tax Foundation tariff model numbers 12:00 – Section 122 explained: 150-day tariffs and legal questions 14:00 – Section 232, Section 301, and the coming patchwork of tariffs 15:42 – The compliance and administrative waste of tariff policy 17:00 – Can Congress step in and reclaim tariff authority? --- RESOURCES: Tax Foundation Tariff Tracker: https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/ Tax Foundation IEEPA Tariff Analysis: https://taxfoundation.org/tags/ieepa/ --- CONTACT: Email: podcast@taxfoundation.org Twitter/X: @DeductionPod Twitter/X: @EricaDYork Drop a comment below with your tax questions. --- ABOUT: The Deduction is a podcast by the Tax Foundation, the world's leading independent tax policy nonprofit. The Tax Foundation has been providing trusted, nonpartisan tax research and analysis since 1937. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

December 17, 202551 min

2025 Tax Review | What OBBBA Changed, the Impact of Tariffs, and What’s Next

The One Big Beautiful Bill Act capped off a hectic year for tax policy. It extended key Tax Cuts and Jobs Act provisions, reshaped the outlook for 2026, and raised fresh questions about the deficit. In this episode, Kyle Hulehan and Erica York are joined by Daniel Bunn, President and CEO, and Jared Walczak, Vice President of State Projects, to break down what the law did, walk through our projections, and zoom out to other defining fights of 2025: Trump's "Liberation Day" tariffs, the Supreme Court challenge over presidential tariff power, and the growing wave of property tax revolts across the states. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

November 2, 202525 min

Trump’s Tariffs Head to the Supreme Court

In this episode of The Deduction podcast, host Kyle Hulehan and co-host Erica York are joined by Alex Durante, Senior Economist at the Tax Foundation, to discuss the Supreme Court's upcoming decision on whether the president can impose $2.2 trillion in tariffs under the International Emergency Economic Powers Act (IEEPA). The conversation covers the origins and implications of these tariffs, their economic impact on consumers and businesses, and the potential outcomes of the court ruling. They also explore the broader theme of presidential authority in trade regulation and the possible legislative responses. Stay tuned for an insightful breakdown of the tariff landscape and its future implications. 00:00 Introduction and Bananas 00:36 Welcome to The Deduction Podcast 01:15 Tariffs and Presidential Authority 04:15 Impact of Tariffs on Consumers and Businesses 06:58 Bananas as a Case Study 08:42 Personal Stories of Tariff Impact 10:43 Legal Battle Over Tariffs 14:25 Future of Tariff Policies 20:53 Congress vs. Presidential Power 23:32 Conclusion and Listener Engagement Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

October 7, 202523 min

Can We Replace the Property Tax?

Property tax repeal would put roughly 70 percent of local tax revenue on the line—forcing states and localities to find something else. Can sales or income taxes really replace it without major rate spikes, burden shifts, and anti-growth incentives? Kyle Hulehan is joined by Jared Walczak, Vice President of State Projects at Tax Foundation, to unpack the math behind replacement plans, the trade-offs voters should know about, and why reform may beat repeal. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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