Cato Daily Podcast

Join Adam Michel, Director of tax policy studies at the Cato Institute, as he uncovers the hidden costs of federal tax withholding. He argues that this policy obscures the true burden of taxation, making it harder for taxpayers to grasp their financial obligations. The discussion ventures into alternative tax structures like a negative income tax and a simplified flat tax, aiming to empower citizens with clearer fiscal responsibilities. Michel also contemplates how ending withholding could prompt demands for a leaner government and greater accountability.

Adam Michel, the Director of tax policy studies at the Cato Institute, breaks down the hypocrisy surrounding tax expenditures. He reveals how taxpayers cheer for their own benefits while deriding those that serve others. The discussion dives into egregious tax breaks that clutter the system, like deductions for pass-through businesses. Michel also highlights taxpayer favorites, such as the mortgage interest deduction, and examines how these preferences shape political landscapes. He advocates for a grand bargain in tax reform that could streamline the tax code by eliminating some benefits to reduce rates for everyone.

Norbert Michel, Cato’s Vice President and Director of the Center for Monetary and Financial Alternatives, dives into the misconceptions surrounding free trade and its impact on the middle class. He argues that tariffs are based on misunderstandings of data and that free trade has greatly benefited most Americans, contrary to common belief. Michel challenges nostalgic views of the past, unpacks wage stagnation, and emphasizes the economic progress since the 1970s. He encourages a recognition of the advantages of trade agreements for both the U.S. and its partners.

Colin Grabow, Associate Director of the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies, unpacks flawed tariff arguments. He reveals how tariffs often harm consumers more than help them. Grabow discusses the unintended consequences of leaving the Trans-Pacific Partnership and critiques the misconception of seeking self-sufficiency in trade. He also debunks the myth that tariffs boost manufacturing jobs, instead emphasizing the importance of free trade for foreign investment and economic growth.

Ian Vasquez, Director of the Cato Institute Center for Global Liberty and Prosperity, dives into the controversial tariff policies influenced by President Trump, drawing parallels with authoritarian regimes. He emphasizes the detrimental effects on the U.S. economy and global trade, explaining how these policies stifle true free trade. The conversation highlights the importance of maintaining open markets for global prosperity and critiques the outdated fears surrounding foreign competition, using bananas as a metaphor for comparative advantage.

Scott Lincicome, Vice President of General Economics at the Cato Institute, delves into the flawed rationale behind President Trump's recent tariffs and their economic repercussions. He critiques the lack of reciprocity in these policies, highlighting how they could escalate global trade tensions. Lincicome also discusses the complex impact on American manufacturing and the challenges it poses to businesses. Lastly, he examines the shift in global trade dynamics as nations adapt to U.S. policies, illustrating a resilient global support for free trade.

Jai Kedia, a research fellow at the Cato Institute specializing in economic policy and trade, dives deep into the ramifications of the recent tariff regime imposed by the President. He explains how these tariffs strain the Federal Reserve's attempts to control inflation, highlighting the risks of stagflation. Kedia argues that the effects of tariffs are far from temporary, leading to fewer consumer choices and higher prices. He also critiques the notion that inflation is solely a monetary issue, revealing the complex interplay between tariffs and market health.

Patrick Eddington, a senior fellow at the Cato Institute and author of "The Triumph of Fear," delves into the historical roots of federal surveillance and political repression in America. He discusses the rise of government surveillance post-McKinley's assassination, highlighting Theodore Roosevelt and Woodrow Wilson's expansive measures. Eddington explores the tension between civil liberties and national security during wartime, as well as the legacy of these practices from early 20th century through the Cold War, revealing how fear continues to shape modern governance.

Lynne Kiesling, Director of the Institute for Regulatory Law and Economics at Northwestern University, dives into the intricate balance between rooftop solar and traditional energy sources. She discusses how small-scale solar challenges the stability of the grid, raising questions for regulators. The conversation highlights Hawaii's unique energy landscape and innovative ideas like balcony solar installations. Kiesling also explores the potential of regulatory sandboxes to foster new electricity models, making the case for a modernized approach to energy regulation.

Phil Magness, a senior fellow at the Independent Institute and author of "The 1619 Project Myth," dives deep into the manipulation of history by both the Left and Right. He discusses how political ideologies distort facts to support their narratives, emphasizing the importance of confronting uncomfortable truths. Magness critiques nostalgic views of the 1950s, examines conflicting narratives surrounding slavery and the 2020 election, and warns against the dangers of using history as a weapon in political discourse.