El Podcast

E80: The Rich are Overtaxed, NOT YOU (w/ Scott Hodge)

Episode Summary

Scott Hodge, President Emeritus and Senior Policy Advisor at the Tax Foundation, discusses the complexities of the US tax system, its evolution, and its impact on individuals and businesses, highlighting issues like multiple taxation, the growth of the tax code, and the impact of tax incentives and exemptions. He explores the progressive nature of the US tax system and the challenges of government spending and debt. The conversation covers a wide range of topics related to taxation, including its history, impact on economic growth, fairness, and the need for reform, providing insights into the challenges and opportunities associated with taxation and its impact on individuals and the economy.

Episode Notes

Tax policy expert Scott Hodge joins to discuss how America’s complex tax code impacts your daily life, punishes success, and what real reform could look like.

Guest bio: Scott Hodge is President Emeritus and Senior Policy Advisor at the Tax Foundation, where he served as president from 2000 to 2022. A leading voice on tax reform, he played a key role in shaping the 2017 Tax Cuts and Jobs Act and is the author of Taxocracy: What You Don’t Know About Taxes and How They Rule Your Daily Life.

Topics discussed:

• Why the U.S. tax code grew from 27 pages to over 7,000
• The hidden layers of taxation on income, savings, and estates
• How tax exemptions fuel lobbying, inequality, and corruption
• Problems with tax credits for EVs, education, and housing
• The IRS as a welfare agency and the rise of improper payments
• How nonprofits, universities, and credit unions game the system
• The sustainability of Social Security and U.S. national debt
• Lessons from Estonia’s 88-page flat tax system
• The myth of “tax the rich” and the real income tax burden
• Why U.S. tax policy often punishes success and risk-taking

Top quote:
"The tax code has become a tool for punishing success—success taxes are the new sin taxes."