Tax Chats

Send us a textScott and Jeff discuss tax justice with Amy Hanauer, Executive Director of Citizens for Tax Justice and its sister organization, ITEP (Institute on Taxation and Economic Policy). We ask Amy what a fair tax system would look like. We discuss problems with the current tax system. We touch on methods the government uses to redistribute income, like the earned income tax credit and the child tax credit. We briefly discuss corporate taxes, and Amy shares her view that corporations do not pay enough taxes. 

Send us a textJeff explains how some non-profits owe income taxes on the unrelated business income, but, how because of the mission of the Girls Scouts, they don't pay taxes on the proceeds from the cookies sales.

Send us a textIn this episode, Scott and Jeff discuss why financial accounting rules and tax accounting rules are different. They give some examples. They talk about some firms that have reported very high income while also paying very low taxes. They also talk about how the opposite happens, but doesn't get much media attention.

Send us a textScott and Jeff discuss Cannabis taxation with economist Caroline Weber. We chat about the history of cannabis taxation, the advantage of legalizing cannabis to make it easier to tax, the use of taxes to set a price floor, and other issues related to cannabis taxation. We also discuss whether the taxes collected from Cannabis production and sales are used to remedy some of the social ills that might arise from widespread cannabis use. 

Send us a textScott and Jeff interview Grover Norquist, president of Americans for Tax Reform (ATR). We discuss the Taxpayer Protection Pledge, which has been signed by many national and state-level politicians, including past presidents, many senators, sitting governors, and others. The signing is mostly partisan, with Republicans mostly signing, and Democrats rarely signing.Grover Norquist discusses his views on taxes and government, and argues that there is never a good reason to increase income tax collections.Grover Norquist describes how he believes raising taxes can lead to political trouble for Republican politicians.

Send us a textScott and Jeff discuss tax boycotts. Some corporate mangers say they are careful with their tax planning because they don't want to make their customers mad--customers might not buy things from a company they perceive as overly aggressive with their taxes. In this episode, Scott and Jeff discuss a recent study by Jeff and co-authors Scott Asay (U Iowa), Jake Thornock (Brigham Young University), and Jaron Wilde (U Iowa) called "Tax Boycotts". We describe how the scorn of consumers might harm corporations that avoid taxes. Jeff and co-authors searched high and low for evidence of consumer boycotts related to tax avoidance and were unable to find any evidence. The conclusion is that, although managers might perceive one cost of tax planning is the potential for consumer boycotts, in fact the costs rarely materialize.

Send us a textScott and Jeff talk with Ken Kies about TRA86, the last major tax reform since the Tax Cuts and Jobs Act. Ken was the Chief Republican Tax Counsel of the House Ways and Means Committee during the process of passing TRA86. How bipartisan was the TRA86? Was Ronald Reagan involved in the details? How much did the lobbyists matter? This episode gets into the details of TRA86 from someone who was on the front lines of tax reform when it happened. 

Send us a textScott and Jeff interview Lincoln Rice, Coordinator of the National War Tax Resistance Coordinating Committee, a group which would have you ask yourself "are you praying for peace, but paying for war?" We learn what it means to be a War Tax Resister. We discuss the risks, if any, of not paying taxes, and how the tax system is used by some as a tool for voicing opposition to government policies. 

Send us a textCapital Gains Sea ShantySung by Dyreng's DeductionsLyrics by Jeff HoopesThere once was a man who bought some stockIn a little firm they call gamestopThe price went up so he sold his sharesSittin on his gains so unawareThen, oh, the taxman comeTo tax his gains and stop his funOh, when, the taxin’ is doneHe’ll have some pennies and changeSo what could you do to stop the pain?To keep the taxman from your gains?To keep the tax from being incurredThe best way is to just deferThen, oh, the taxman comeTo tax his gains and stop his funOh, when, the taxin’ is doneHe’ll have some pennies and changeDeferrals not the only game in townTo save your money just share it aroundTo spare your gains from a high tax rateYou just need to donateThen, oh, the taxman comeTo tax his gains and stop his funOh, when, the taxin’ is doneHe’ll have some pennies and changeOoooohhhhhOoooohhhhOooooohhhhOooohhhhChorus OoooohhhChorus OoooohhhChorus OoooohhhChorus OoooohhhAnother trick to save tax costsIs to harvest your loss stocksSell as many as you have in gainsTo save yourself from taxman painsThen, oh, the taxman comeTo tax his gains and stop his funOh, when, the taxin’ is doneHe’ll have some pennies and changeIf you defer your gains so wellBecause you’re dead as a doornailYou’re dead but your estates got luckBecause your basis gets stepped upThen, oh, the taxman comeTo tax your gains and stop your funOh, when, the taxin’ is doneYou’ll have some pennies and changeOh, when, the taxin’ is doneYou’ll have some pennies and change

Send us a textScott explains the step-up in basis loophole. He describes how it can help you pass your wealth to your heirs tax efficiently.