Wasteful Tax Expenditures: A Chat with Calvin Johnson
Summary
Hosts Scott Dearing and Jeff Hoops interview Calvin Johnson, a tax law professor at UT Austin, about the inefficiency of tax expenditures. Johnson argues that most tax credits, including green energy incentives and municipal bond subsidies, fail cost-benefit analyses and should be replaced by direct appropriations. He also advocates for repealing the Pollock decision to enable constitutional wealth taxes on ultra-high-net-worth individuals.
Topics discussed
Introduction and Duke vs UNC basketball banter
Guest Calvin Johnson introduces himself and his mission
Defining tax expenditures versus standard deductions
R&D credits, EITC, and the role of government spending
Critique of green energy tax credits and government R&D efficiency
Government R&D success stories like ARPA and internet development
Municipal bond tax exemptions and implicit tax rates
Political bias in tax policy and wealth concentration
Constitutional history of wealth taxes and Pollock v. Farmers Trust
Conclusion and final remarks
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