The Tax Policy Podcast with Fexingo: Income Tax, Corporate Tax, and Fiscal Conversations

Episode 80 of The Tax Policy Podcast explores carbon taxes — specifically how British Columbia's revenue-neutral carbon tax worked from 2008 to 2024. Lucas and Luna break down the policy's design: starting at $10 per metric ton of CO2, rising to $50 by 2021, with all revenue returned via cuts to personal and corporate income taxes. They examine the evidence: a 5–15% reduction in per-capita fuel us...

Episode 79 of The Tax Policy Podcast dives into transfer pricing — the rules that determine how multinational corporations allocate income between subsidiaries in different countries. Lucas and Luna explain why a one-page intercompany agreement for a patent can shift millions in taxable profit to a low-tax jurisdiction. They walk through the arm's-length standard, the OECD's BEPS framework, and a...

In this episode, Lucas and Luna dig into the real-world performance of Opportunity Zones – the tax-advantaged investment program created by the 2017 Tax Cuts and Jobs Act. By mid-2026, hundreds of funds have deployed capital into low-income communities across the US, but are the promised tax breaks delivering genuine economic lift? The hosts examine a specific case: a mixed-use development in Atla...

In Episode 77 of the Tax Policy Podcast, Lucas and Luna demystify cost segregation studies—a tax strategy that lets commercial real estate owners reclassify building components from 39-year property to 5-, 7-, or 15-year property, accelerating depreciation deductions. They walk through a concrete example: a $10 million office building where a cost segregation study identifies $2 million of persona...

Lucas and Luna unpack the hidden excise tax embedded in everyday goods like gasoline, alcohol, and airline tickets. They trace how the federal government uses excise taxes not just to raise revenue but to shape behavior, from cigarettes to tanning beds. With concrete examples and data, they explain why these taxes are often regressive, how they've changed since the 1990s, and why you rarely notice...

Episode 75 of The Tax Policy Podcast digs into a quiet but consequential tax rule change: the requirement to capitalize R&D costs starting in 2022. Lucas and Luna walk through how the Tax Cuts and Jobs Act eliminated the option to immediately deduct research spending, why companies like Pfizer and small biotech startups saw their effective tax rates jump, and what the bipartisan 'American Innovati...

Episode 74 of The Tax Policy Podcast digs into the Alternative Minimum Tax (AMT), a parallel tax system originally designed to catch the ultra-wealthy but now quietly hitting middle-income families. Lucas and Luna walk through how the AMT works, why it still exists decades after its creation, and how the Tax Cuts and Jobs Act changed the number of people affected. They use specific numbers — like...

How does the United States tax its multinational corporations on income earned overseas — and why does it matter in 2026? In this episode, Lucas and Luna break down the shift from a worldwide tax system to the current hybrid model created by the Tax Cuts and Jobs Act. They explain the Global Intangible Low-Taxed Income (GILTI) regime, how it treats foreign earnings, and why it pushes companies to...

In this episode, Lucas and Luna drill into the Earned Income Tax Credit — not as a political talking point, but as a concrete policy machine that moves millions of workers out of poverty each year. Lucas walks through the credit's weird structure: it phases in, plateaus, then phases out, creating an implicit marginal tax rate that can hit 21 cents on the dollar. Luna brings the data: in 2025, roug...

Episode 71 of The Tax Policy Podcast dives into the Additional Medicare Tax—a 0.9 percent surtax that applies to wages above $200,000 for single filers. Lucas explains why this tax catches many high earners by surprise, especially when bonuses or stock vesting push them over the threshold unexpectedly. Luna shares a real example of a tech manager in San Francisco who owed $4,500 more than expected...

In Episode 70 of The Tax Policy Podcast, Lucas and Luna tackle the estate tax — one of the most misunderstood taxes in America. They anchor on a single vivid number: in 2026, the federal estate tax exemption is $13.99 million per individual, meaning fewer than 0.2% of estates actually file a return. Lucas walks through how the Tax Cuts and Jobs Act doubled the exemption in 2018 and how that's sche...

Lucas and Luna unpack the carried interest loophole — why private equity and hedge fund managers pay a lower tax rate than many teachers and nurses. They walk through how it works in a typical fund structure, why it survived the 2017 Tax Cuts and Jobs Act with only a minor change (a three-year holding period), and why bipartisan anger hasn't killed it. The episode focuses on a concrete example: a...

Lucas and Luna break down the marriage penalty in the US tax code. They explain how joint filing can actually increase a couple's total tax bill compared to two single filers, using the example of a dual-earner couple earning $160,000 combined. The episode covers the history of the penalty, the impact of the Tax Cuts and Jobs Act, why the penalty still persists for many couples, especially at high...

In this episode of The Tax Policy Podcast, Lucas and Luna explore the Research and Development tax credit—a federal incentive designed to spur innovation. They break down how the credit is calculated, who qualifies, and why it has become a flashpoint in tax policy debates. Using the example of a mid-sized manufacturer in Ohio, they illustrate how the R&D credit can reduce tax liability dollar-for-...

Lucas and Luna break down the mechanics of international tax treaties — the bilateral agreements that determine which country gets to tax what when a company or individual earns income across borders. Using the US-Netherlands treaty as a concrete example, they explain the 'tiebreaker' rules for residency, the role of withholding tax rates on dividends and royalties, and what happens when a treaty...

Payroll taxes fund Social Security and Medicare, but they hit low-income workers harder than high earners because of the wage base cap. In this episode of The Tax Policy Podcast, Lucas and Luna break down how the 12.4 percent Social Security tax applies only up to $176,100 in 2026, meaning someone earning $60,000 pays the same effective rate as a CEO making $10 million above the cap. They explore...

Episode 64 of The Tax Policy Podcast dives into the state and local tax (SALT) deduction cap introduced by the Tax Cuts and Jobs Act, which limits itemized deductions for state and local taxes to $10,000. Lucas and Luna explore how this cap has affected high-tax states like New York, California, and New Jersey, with specific data on taxpayer migration and revenue impacts. They discuss the politica...

In this episode, Lucas and Luna dig into the 2017 Tax Cuts and Jobs Act and its lasting impact on corporate investment decisions. They focus on one specific provision: the full expensing of capital equipment, which allowed companies to immediately deduct the full cost of investments like machinery and software. Lucas explains how the policy aimed to boost business spending, and breaks down the dat...

Lucas and Luna unpack the mechanics of the US gift tax: the annual exclusion (currently $18,000 per recipient in 2026), the lifetime exemption ($13.61 million), and the distinction between taxable gifts and gift-splitting. Using a concrete example of a grandparent helping with a grandchild's tuition and a down payment, they walk through when a gift tax return is actually required, how the unified...

Episode 61 of The Tax Policy Podcast dives into a tax that catches many high earners off guard: the Net Investment Income Tax, or NIIT. Lucas and Luna explore how this 3.8 percent surtax, created to fund the Affordable Care Act, applies to investment income above certain thresholds. They break down what counts as investment income, who gets hit, and why it often surprises retirees and small busine...

Online marketplaces like Amazon and eBay are supposed to collect sales tax on behalf of third-party sellers, but billions of dollars in tax revenue slip through the cracks every year. In this episode, Lucas and Luna examine a 2026 Government Accountability Office report revealing that nearly 40 percent of large marketplace sellers are not registered to collect sales tax in states where they have e...

Lucas and Luna dive into the digital services tax (DST) — a levy on revenue from user data and targeted advertising that has become a flashpoint between the EU, the US, and major tech platforms. They trace its origins from France's 2019 test case to the OECD's stalled multilateral framework, and land on a surprising 2026 development: the UK's DST now brings in over one billion pounds annually, whi...

In this episode of The Tax Policy Podcast, Lucas and Luna dive into the world of transfer pricing — the rules that determine how multinational corporations allocate income across countries. Using a concrete example of a fictional gadget company called GlobalGadget, they explore how transfer pricing can shift profits to low-tax jurisdictions and why tax authorities push back. They discuss the arm's...

This episode unpacks the complex world of transfer pricing — the rules that determine how multinational corporations allocate income across borders. Lucas explains how companies like Apple and Starbucks have used transfer pricing to shift profits to low-tax jurisdictions, and how the OECD's BEPS framework is tightening those rules. Luna challenges whether the new regulations actually reduce tax av...

Episode 56 of The Tax Policy Podcast with Fexingo: Income Tax, Corporate Tax, and Fiscal Conversations. Lucas and Luna examine how tax-exempt municipal bonds underwrite nonprofit hospitals—a $200 billion market that quietly shapes your community's healthcare infrastructure. Using the case of the Mayo Clinic's $2 billion bond issuance in 2025, they unpack how the tax exemption saves hospitals rough...