The Deduction

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

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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

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

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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

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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

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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

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

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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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Is the OBBBA a Step Back for Tax Simplicity?

In this episode of The Deduction, host Kyle Hulehan discusses the complexities of the US tax system with Alex Muresianu, Senior Policy Analyst at the Tax Foundation. They delve into the staggering 7.1 billion hours Americans spend on tax compliance every year, and explore the impact of the One Big Beautiful Bill Act on simplifying and complicating the tax code. Key topics include the permanence of the Tax Cuts and Jobs Act provisions, the introduction of new deductions, and the challenges and missed opportunities for structural tax reform. They also discuss the significant costs associated with tax compliance and suggest potential reforms for the future. Join us for an insightful conversation on the intricacies of the US tax system and the path ahead. Links: https://taxfoundation.org/research/all/federal/obbba-income-tax-complexity-tax-breaks/ https://taxfoundation.org/research/all/federal/one-big-beautiful-bill-act-tax-changes/ Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

The Big Beautiful Bill's Impact on State Taxes, Explained

Congress may have passed the One Big Beautiful Bill Act (OBBBA), but state lawmakers now face big choices. Most states link their tax codes to the federal system, meaning OBBBA’s provisions—good and bad—are about to ripple across state budgets. In this episode, we explain why federal tax changes can automatically affect your state tax bill, the costly new personal deductions with limited benefits, and the pro-growth business provisions that remove barriers to investment and jobs. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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Trump Tariffs Explained: Grocery Prices and Rebate Checks

Trump’s 2025 tariffs will hit nearly three-quarters of US food imports, raising prices on products that are often difficult or impossible to produce domestically. Senator Hawley has proposed a rebate program to return some of the revenue to households—but would it actually help? Kyle Hulehan is joined by Alex Durante, Senior Economist at the Tax Foundation, to unpack how these tariffs work, the economic trade-offs of a rebate, and why repealing tariffs may be the most effective solution. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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Tax-Free Weekends: When Popular Policy Meets Poor Economics

They’re popular, highly visible, and marketed as tax relief—but research shows sales tax holidays are inefficient, create compliance headaches, and often miss the mark for the taxpayers they’re meant to help. Kyle Hulehan is joined by Katherine Loughead, Senior Policy Analyst and Research Manager at the Tax Foundation. Together, they break down why these policies persist—and what better alternatives might look like. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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Will Trump Accounts Actually Help Families Save?

Who are Trump Accounts really for, and will they actually help families save? With yet another savings vehicle added to an already confusing system, do these accounts solve a real problem—or just add more complexity? In this episode, we break down what Trump Accounts are, how they work, and why they might not be the game-changer they sound like. We also explore why the U.S. savings system is failing most Americans and what a simpler, universal approach could look like. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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The One Big Beautiful Bill Is Law—Now What?

The One Big Beautiful Bill is now law—but what does it actually do? In this episode, we break down the new tax law’s key provisions, including who benefits, who doesn’t, and what it means for the economy, tax certainty, and the federal deficit. Kyle Hulehan is joined by Daniel Bunn, President and CEO of Tax Foundation, and Garrett Watson, Director of Policy Analysis. Together, they dive into the bill’s temporary vs. permanent changes, its international implications, and how it sets the stage for future tax policy debates. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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The One Big Beautiful Tax Bill: What’s In It, What’s Out

Congress is racing to pass the One Big Beautiful Tax Bill before the July 4 deadline. In this episode, Kyle Hulehan and Erica York break down what just happened over the weekend, what’s actually in the bill, and what comes next as the House and Senate try to reconcile their differences. Learn more: “Big Beautiful Bill” Senate GOP Tax Plan: Preliminary Details and Analysis: https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/ Budget Reconciliation Tracker: https://taxfoundation.org/research/all/federal/trump-tax-cuts-2025-budget-reconciliation/ “Big Beautiful Bill” House GOP Tax Plan: Preliminary Details and Analysis: https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/ The Good, the Bad, and the Ugly in the One, Big, Beautiful Bill: https://taxfoundation.org/blog/one-big-beautiful-bill-pros-cons/ House Tax Package Could Double Economic Growth Impact by Prioritizing Permanence for TCJA Business Provisions: https://taxfoundation.org/blog/house-tax-plan-economic-growth-impact-business-tax-permanent/ A More Generous SALT Deduction Cap in the Big, Beautiful Bill Would Cost Revenue and Primarily Benefit High Earners: https://taxfoundation.org/blog/salt-deduction-cap-increase-proposal-analysis/ House “One Big Beautiful Bill” Riddled with Temporary Tax Policy: https://taxfoundation.org/blog/house-one-big-beautiful-bill-temporary-tax-policy/ Current Trump Tariffs Threaten to Offset Benefits of Promised Tax Cuts: https://taxfoundation.org/blog/trump-tariffs-tax-cuts/ House GOP’s Approach to the IRA Clean Energy Tax Credits: Five Things to Know: https://taxfoundation.org/blog/ira-clean-energy-tax-credits-house-gop-ways-means-bill/ Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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Breaking Down the Senior Deduction in the One, Big, Beautiful Bill

The House-passed reconciliation bill leaves out Trump’s promise to eliminate taxes on Social Security benefits, opting instead to expand the standard deduction for seniors. In this episode, Kyle Hulehan and Erica York are joined by Alex Durante to unpack how the deduction works, who benefits most, and how it compares to repealing Social Security taxes. Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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One, Big, Beautiful Bill: The Good, the Bad, and the Ugly

From generous tax breaks to costly trade-offs, the House GOP’s One, Big, Beautiful Bill has a little of everything. It’s a sweeping attempt to extend key provisions of the 2017 Tax Cuts and Jobs Act before they expire in 2026—but what’s actually in it? Kyle Hulehan and Erica York are joined by Garett Watson, Director of Policy Analysis at the Tax Foundation, to break down the good, the bad, and the ugly: who benefits, what it could mean for the economy, and how it might reshape your tax bill. Learn more: Budget Reconciliation Tracker: https://taxfoundation.org/research/all/federal/trump-tax-cuts-2025-budget-reconciliation/ “Big Beautiful Bill” House GOP Tax Plan: Preliminary Details and Analysis: https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/ The Good, the Bad, and the Ugly in the One, Big, Beautiful Bill: https://taxfoundation.org/blog/one-big-beautiful-bill-pros-cons/ House Tax Package Could Double Economic Growth Impact by Prioritizing Permanence for TCJA Business Provisions: https://taxfoundation.org/blog/house-tax-plan-economic-growth-impact-business-tax-permanent/ A More Generous SALT Deduction Cap in the Big, Beautiful Bill Would Cost Revenue and Primarily Benefit High Earners: https://taxfoundation.org/blog/salt-deduction-cap-increase-proposal-analysis/ House “One Big Beautiful Bill” Riddled with Temporary Tax Policy: https://taxfoundation.org/blog/house-one-big-beautiful-bill-temporary-tax-policy/ Current Trump Tariffs Threaten to Offset Benefits of Promised Tax Cuts: https://taxfoundation.org/blog/trump-tariffs-tax-cuts/ House GOP’s Approach to the IRA Clean Energy Tax Credits: Five Things to Know: https://taxfoundation.org/blog/ira-clean-energy-tax-credits-house-gop-ways-means-bill/ Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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Are Trump’s Tariffs Legal? Here’s What the Courts Say

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 show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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The One Big Beautiful Bill, Explained

We break down the House GOP’s One, Big, Beautiful Bill—a sweeping tax package designed to extend key parts of the 2017 Tax Cuts and Jobs Act before they expire in 2026. Kyle Hulehan is joined by Garett Watson, Director of Policy Analysis at the Tax Foundation, to unpack what’s actually in the bill, who benefits the most, and how it could impact the economy, federal revenue, and your taxes. Links: https://taxfoundation.org/blog/house-one-big-beautiful-bill-temporary-tax-policy/ https://taxfoundation.org/research/all/federal/big-beautiful-bill-house-gop-tax-plan/ https://taxfoundation.org/blog/house-tax-plan-economic-growth-impact-business-tax-permanent/ Support the show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show

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What Happens If Social Security Runs Out in 2035?

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 show Follow us! https://twitter.com/TaxFoundation https://twitter.com/deductionpod Support the show