The Deduction

Garett Watson, Director of Policy Analysis at the Tax Foundation, dives into the intricacies of the House GOP’s new tax package. He discusses the blend of permanent and temporary provisions, highlighting the impact on long-term investments. The conversation also explores the controversial state and local tax (SALT) deduction cap, analyzing its effects on high-income states. Watson stresses the need for tax stability and advocates for simplifying complex provisions to support a broader spectrum of taxpayers while fostering economic growth.

It’s been a whirlwind 24 hours in tariff news: first, a trade court blocked Trump’s sweeping new tariffs, calling them executive overreach. Then, a federal appeals court reinstated them—at least for now. We break down what happened, what’s next, and why it matters.Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Garett Watson, Director of Policy Analysis at the Tax Foundation, joins to dive deep into the House GOP's One Big Beautiful Bill, which seeks to make parts of the 2017 tax overhaul permanent. They discuss who stands to gain the most from this sweeping tax package and the broader economic implications. Watson sheds light on the delicate balance between stimulating growth and managing the national deficit. The conversation also touches on contentious issues like the SALT cap and the potential long-term effects on taxpayers.

What happens when the country’s most important retirement program runs out of money? Social Security faces a funding crisis by 2035. We unpack how the system works, why it’s in trouble, and what fixes could keep it afloat.Kyle Hulehan and Erica York are joined by Alex Durante, Senior Economist at the Tax Foundation. Together, they break down the trade-offs behind today’s biggest Social Security reform ideas. Links: https://taxfoundation.org/blog/how-the-payroll-tax-base-has-changed-over-time/https://taxfoundation.org/research/all/federal/social-security-reform-options/https://taxfoundation.org/blog/medicare-social-security-tax-spending-deficits/https://taxfoundation.org/research/all/federal/us-debt-budget-taxes-spending-social-security-medicare/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Do tariffs really level the playing field, or are they just bad economics? In this emergency episode, we fact-check the Trump administration’s claims that retaliatory tariffs make trade fairer. Kyle Hulehan and Erica York break down the flawed research behind these arguments, explain who actually pays for tariffs, and discuss their real impact on businesses and consumers. Links: https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/https://taxfoundation.org/blog/trump-reciprocal-tariffs-calculations/https://taxfoundation.org/blog/trump-tariffs-prices-long-term-effects/https://taxfoundation.org/topics/tariffs-and-trade/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

What are the biggest tax stories shaping policy today—and what do they mean for you? In our 100th episode, we break down the five biggest tax stories, from the global tax deal to the looming expiration of the Tax Cuts and Jobs Act. Kyle Hulehan and Erica York are joined by Daniel Bunn, President and CEO of  Tax Foundation, and Garrett Watson, Director of Policy Analysis. We also dive into the Inflation Reduction Act, the CHIPS and Science Act, the rise of flat taxes in states, and the role of tariffs in tax policy.  Links: https://taxfoundation.org/podcast/all/understanding-property-taxes/https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/https://taxfoundation.org/blog/global-tax-agreement/https://taxfoundation.org/blog/flat-tax-state-income-tax-reform/https://taxfoundation.org/blog/inflation-reduction-act-ira-credits-repeal-reform/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

With property tax bills on the rise, homeowners are searching for answers—and some even want to abolish the tax altogether. In this episode, we break down why property taxes are increasing, discuss common but flawed solutions, and explain why the property tax remains an economically efficient revenue source. Senior Policy Analyst Manish Bhatt joins hosts Kyle Hulehan and Erica York to explore levy limits, circuit breakers, and policy reforms that could provide relief without distorting the housing market. Links: https://taxfoundation.org/research/all/state/property-tax-relief-reform-options/https://taxfoundation.org/data/all/state/property-taxes-by-state-county/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

How should states approach the unique challenges and opportunities presented by sports betting?  In this episode, Adam Hoffer, Director of Excise Tax Policy at the Tax Foundation, joins Kyle Hulehan to unpack the intricacies of sports betting tax policy during one of the biggest betting events of the year—Super Bowl 59.https://taxfoundation.org/research/all/state/sports-betting-tax-revenue/https://taxfoundation.org/data/all/state/sports-betting-taxes-by-state-2024/Support the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

Are tariffs making everything more expensive? With Trump’s new tariff plans hitting $1.1 trillion in imports—far more than his first term—prices could rise for businesses and consumers alike.Kyle Hulehan and cohost Erica York break down who really pays for tariffs, why they hurt lower-income Americans most, and whether they worked the first time around. Links: Trump Tariffs: Tracking the Economic Impact of the Trump Trade WarQuestions About Tax Cuts, Tariffs, and Reconciliation After the ElectionWhy the Economic Effects of Taxes (Including Tariffs) MatterFive Things To Know About Trump’s Income Tax and Tariffs IdeaSupport the showFollow us!https://twitter.com/TaxFoundationhttps://twitter.com/deductionpodSupport the show

In a riveting discussion, Daniel Bunn, President and CEO of the Tax Foundation, sheds light on the looming changes in tax policy with tax cuts set to expire in 2025. Bunn emphasizes the potential for tax hikes impacting over 60% of filers, along with the urgent need for reforms to avoid fiscal crisis. He explores the prospects for bipartisan cooperation, the necessary principles of simplicity and transparency, and the significant real-life impacts of proposed reforms, including possible increases of up to $2,500 in tax bills.