Shows
Tax ChatsTaxocracy: A Chat with Scott Hodge about his new bookSend us a textJeff and Scott talk with Scott Hodge (who is revealed to be a more authentic "Scott" than Scott Dyreng), CEO Emeritus to the Tax Foundation. They discuss his new book, "Taxocracy: What You Don't Know About Taxes and How They Rule Your Daily Life", about all the ways which taxes shape our lives.Get CPE for listening to Tax Chats! Free CPE courses are available approximately one week after episodes are published. Visit https://earmarkcpe.com/ to download the free app. Go to the Tax Chats channel, register for the course...
2024-07-2638 min
The Fuqua ShowE54 —Scott Dyreng— Life and Taxes: Advice from an Excited Accounting ProfessorHappy (?) Tax Day! To celebrate, we're bringing you a special episode with our professor and resident tax guru Scott Dyreng - featuring advice on taxes, life, and everything in between.Scott Dyreng grew up on a turkey farm in rural Utah and made his way to writing op-eds for the Wall Street Journal. A member of the Church of Jesus Christ of Latter-day Saints, Scott has seen the world (Chile, UK), started a family (with six children), built a blueberry farm, and taken several detours before ending up at Duke. In this episode, he shares his journey...
2024-04-1534 min
SALTovation: Navigating the Complexities of State and Local Tax by AprioNavigating State and Local Tax Deductions with Jeff Hoopes and Scott Dyreng from TaxChatsIn this episode of the SALTovation podcast, Stacey Roberts and Meredith Smith speak with hosts of the TaxChats podcast, Scott Dyreng, Professor of Accounting at Duke’s Fuqua School of Business, and Jeff Hoopes, Associate Professor at Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. They discuss the $10,000 state and local tax (SALT) deduction cap and explore the impact of the cap on taxpayers, particularly in high-tax states. They discuss various strategies and issues related to SALT, the political dynamics surrounding the cap, potential future changes, and the complexities of filing taxes in multiple states.
2023-12-2040 minTax ChatsCan ChatGPT Host Tax Chats? ChatGPT Interviews to Replace an Ailing ScottSend us a textJeff asks ChatGPT a series of tax-related questions, and Scott evaluates the answers.
2023-03-0833 minTax ChatsRemembering When The Corporate Tax was Accidentally Cancelled. A Chat with Jim Wetzler.Send us a textWe chat with James Wetzler about the time a legislative mistake accidentally abolished the corporate tax in 1975. This leads to other discussions, including when the New York State Tax Authorities tried to impose sales tax on a kids lemonade stand, the dilemma that arose when the tax authorities seized pornographic videos from a delinquent taxpayer, and the strange situation where an IRS auditor uncovered evidence of a murder.Near the end, we also briefly discuss the deterrent effect of the new excise tax on share repurchases.
2023-03-0434 minTax ChatsRacial Disparity in Tax Audits? A Chat with Evelyn Smith and Hadi Elzayn about their study "Measuring and Mitigating Racial Disparities in Tax Audits"Send us a textScott and Jeff chat with Evelyn Smith and Hadi Elzayn, two of the seven coauthors on a recent working paper entitled "Measuring and Mitigating Racial Disparities in Tax Audits."We ask them details about the paper. We find that the unconditional audit disparity between (estimated) black tax payers and (estimated) non-black taxpayers is about 5%. We ask about the conditional disparity. The authors explain that conditional on some factors the disparity remains. We discuss what constitutes an audit (a letter in this case). We ask whether the IRS should care about collecting t...
2023-02-1536 minTax ChatsChatting about President Biden's 2023 State of the Union AddressSend us a textPresident Biden gave the State of the Union address last night. Scott and Jeff talk about the tax components of the address. They discuss large corporations which pay little in tax, billionaires who pay little in tax, and taxing share repurchases., and "apples and elephants comparisons." Also, Jeff explains why it is impossible for pretty much any taxpayer, let alone those making under $400K a year, to pay a penny more in taxes under any of President Biden's current or former tax proposals (IRC 985 and 6102 come into play!). Note: We...
2023-02-0837 minTax ChatsTax Disclosure: A Chat with Ryan Gurule of the Fact CoalitionSend us a textIn this episode, Scott and Jeff speak with Ryan Gurule of the FACT Coalition about the types of things companies disclose about taxes in their public filings. We talk about what is good and not so good, and we discuss some of the possible changes that might be made. We recorded this episode on November 1, 2022. Later in the year, the Financial Accounting Standards Board (FASB) announce an update to its "Improvements to Tax Disclosures" project. The proposals are well aligned with what we discussed in the episode.
2023-02-0739 minTax ChatsTax Credit Markets: A Chat with Bryen AlperinSend us a textScott and Jeff chat with Bryen Alperin about tax credit markets. It is often the case that a company that might earn a tax credit can't use it because it has insufficient income. This creates an opportunity for multilateral tax planning, wherein institutions with large tax bills partner with entities that generate tax credits to take take advantage of tax savings.
2023-01-3139 minTax ChatsRe-release: Martin Luther King Jr.'s Tax Perjury Trial: A Chat with Edgar DyerSend us a textThis episode originally aired on January 15, 2022.Martin Luther King Jr. is the only person to have ever been tried for perjury with regards to state income taxes in Alabama. Jeff and Scott interview Edgar Dyer about the tax perjury trial of Martin Luther King Jr. in 1960. Eddie wrote an article entitled "A Triumph of Justice in Alabama: The 1960 Perjury Trial of Martin Luther King, Jr."Fred Grey, Martin Luther King's attorney, said of the trial, "No one would have predicted that an all-white jury in Montgomery, Alabama, the Cradle...
2023-01-1633 minTax ChatsBury your NFT in a Graveyard for Tax Savings: A Chat with David Kemmerer, CEO of Coinledger.Send us a textScott and Jeff chat with David Kemmerer, Co-Founder and CEO of CoinLedger. Our conversation focuses, in part, on the NFT Loss Harvestooor, which is a tool designed to allow investors to dispose of NFTs such that they can claim the tax deduction. The NFT Graveyard is the final resting place of NFTs that were once worth hundreds of thousands of dollars, but are now worth essentially nothing.
2023-01-0632 minTax ChatsAttacking Taxing Sovereignty? A Chat with Leopoldo Parada about the OECD's Inclusive FrameworkSend us a textScott and Jeff chat with Leopoldo Parada, professor of law at University of Leeds about the inequities that Pillar II of the OECD's Inclusive Framework impose on developing countries.
2022-12-2831 minTax ChatsTax Tune - Away to Pay Taxes (re-release)Send us a textAway to Pay Taxes (to the tune of Away in the Manger)Re-release (originally released Christmas, 2021)Lyrics by Jeff Hoopes, Sung by Stacey HoopesOh Joseph and MaryThey were there for a taskThey came to the cityTo pay their taxBut as they remitted The tax on their worthOh Mary, a virginShe had to give birth They went to the cityBy Caesar’s decreeAs taxes touched JosephThey affec...
2022-12-2403 minTax ChatsTax Tune - I Heard the Bells (of tax reform!)Send us a textIn honor of the fifth anniversary of the Tax Cuts and Jobs Act...I Heard the Bells (of tax reform!)Sung to the tune of I Heard the Bells on Christmas DaySinging by two of Dyreng's DeductionsLyrics of Jeff HoopesI heard the tale about the dayThey passed the law TCJAThe rate was high our firms payed muchSo they were blessed by Donald’s touchThe rate brought low that fated dayWhen Co...
2022-12-2302 minTax ChatsNew Information on Trump's Tax Returns: A Chat with Daniel HemelSend us a textScott and Jeff chat with Daniel Hemel about the House Ways and Means Committee "Report on the Internal Revenue Service's Mandatory Audit Program" that reveals substantial information about former President Trump's tax returns. Additional information was revealed in a report by the Joint Committee on Taxation.
2022-12-2229 minTax ChatsHappy Birthday, TCJA! Kyle Pomerleau talks about the Tax Cuts and Jobs ActSend us a textThe Tax Cuts and Jobs Act was signed into law on December 22, 2017. In honor of its birth five whole years ago, we talk with the American Enterprise Institute's Kyle Pomerleau, who had a front row seat to the passage of the TCJA.
2022-12-1637 minTax ChatsTaxing Stock Buybacks: A Chat with Daniel HemelSend us a textScott and Jeff chat with Daniel Hemel, Law Professor at New York University about the recently enacted excise tax on share repurchases or buybacks. Daniel has thought and written about buybacks, for example, here.We discuss buybacks, dividends, and why both progressives and conservatives might be in favor of a tax on buybacks.
2022-12-0733 minTax ChatsHow do Capital Gains Taxes Affect Stock Prices? A Chat with Doug Shackelford.Send us a textScott and Jeff discuss the effect of capital gains taxes on stock prices with Douglas A. Shackelford, former Dean of UNC's Kenan-Flagler Business School. If the capital gains tax rate increases, should stock prices go up, down, or stay the same? Its much more complicated than you might think!
2022-12-0230 minTax ChatsAre Craisins Candy? Must have tax information before ThanksgivingSend us a textScott and Jeff discuss what constitutes candy, for sales tax purposes, in North Carolina. The discussion ends with the verdict on craisins--are they candy? Scott is quizzed on other types of food and whether they are candy, and, scores a perfect 0/5.
2022-11-2124 minTax ChatsHow will corporations respond to the tax on book income? A chat with Todd CastagnoSend us a textTodd Castagno, an equity research analyst at Morgan Stanley, responds to a list of possible ways corporations might react to the tax on book income recently passed as part of the Inflation Reduction Act.
2022-11-1837 minTax ChatsThinking in a Tank about Taxes: Chatting about the Tax Foundation with Daniel BunnSend us a textScott and Jeff talk about Tax Foundation with CEO and President Daniel Bunn. We talk about its missions, where it gets funding, and other tax-related issues. We discuss the pro-growth agenda of the Tax Foundation and note that there could be other legitimate objective functions for a think tank.
2022-11-0936 minTax ChatsAnniversary Edition! Rebranding, and chatting about tax headlinesSend us a textTax Chats is officially one year old! In honor of this anniversery, Scott and Jeff talk through a potential rebranding of Tax Chats with a different name, then go on to discuss two tax headlines. First, they discuss windfall profits taxes on oil companies, then talk about the disclosure of Donald Trump's tax returns.Jeff also misuses the Spanish verb "recordar."
2022-11-0429 minTax ChatsTaxing the Things You Buy. A conversation with Whitney Afonso about Sales Taxes.Send us a textIn this episode Scott and Jeff discuss Sales Taxes with Whitney Afonso. We discuss sales tax basics, including the difference between who remits the tax and who bears the burden of the tax. We discuss the purposes of sales taxes. We discuss the regressivity of sales taxes. And we discuss how even Fancy Nancy had to deal with the unexpected pain of sales taxes in Shoe-la-la!
2022-10-2836 minTax ChatsTaxing Student Loan Forgiveness: A Conversation with Senator Phil Berger, President Pro Tempore of the NC State SenateSend us a textIn this episode we talk about the tax consequences of student loan forgiveness. Generally, debt forgiveness is treated as income, and is therefore taxable. If the Biden Administration's current plan to forgive portions of student loans comes to fruition, the forgiven amount would normally be taxable. Provisions have been made to make student loan forgiveness tax free at the federal level. Some states, including North Carolina, would still treat the loan forgiveness as taxable, and borrowers would owe state taxes on the forgiven amounts. We discuss that issue, along with other issues related...
2022-10-1932 minTax ChatsGoing Retro With Tax HeadlinesSend us a textScott and Jeff discuss recent headlines from the New York Times:Opinion | There Is a Tax That Could Help With Inflation - The New York Times (nytimes.com)The Purpose of Extra-Large Marshmallows? A U.K. Court Weighs In. - The New York Times (nytimes.com)Lawsuit Seeks to Block Biden’s Student Debt Cancellation Plan - The New York Times (nytimes.com)Endowment Tax on Wealthiest Universities Netted a Fraction of Predictions in 2021 - WSJ
2022-10-1232 minTax ChatsThe Chats that Might Have Been.Send us a textScott and Jeff discuss several people Jeff has invited to be on the show, but who have (as of yet!) been unable to make a Tax Chats appearance. Scott guesses why Jeff invited each person to be on Tax Chats. The "John Edwards Tax Shelter", gas taxes and electric vehicles, soda taxes, and taxing assault rifles are all briefly discussed.
2022-10-0528 minTax ChatsBreaking Down Pillar I of the OECD's Inclusive Framework with Heydon Wardell Burrus.Send us a textScott and Jeff discuss Pillar 1 of the OECD's Inclusive Framework with Heydon Wardell Burrus of the Centre for Business Taxation at Oxford University.
2022-09-3031 minTax ChatsTaxes in Sitcoms. A Conversation with Larry Zelenak.Send us a textScott and Jeff chat with Larry Zelenak, Professor at the Duke Law School about taxes in sitcoms. Larry has documented the extensive list of episodes that use the federal income tax as a major component of the plot. His work documenting these facts can be found in these two articles:"Six Decades of the Federal Income Tax in Sitcoms""Seven-Plus Decades of the Federal Income Tax in Sitcoms: An Update"In the episode, we refer most frequently to three episodes:3Rd Rock From the Sun, Season 4...
2022-09-2332 minTax ChatsTaxing Tobacco: A Conversation with Mike LovenheimSend us a textIn this episode, Scott and Jeff discuss the some of the fascinating details related to the taxation of tobacco. We often think of the tax system as a tool to raise revenue. But the tax system is also used to encourage or discourage behavior. Taxing tobacco is one example of this type of tax, but the existence of the tax creates many strange incentives that affect the way people behave, including, counterintuitively, smoking more under some circumstances.
2022-09-1539 minTax ChatsDoes (did?!?) the Queen of England pay Income Taxes?Send us a textJeff quizzes Scott about the tax status of the Royal Family in England.Long live the Queen.
2022-09-0908 minTax ChatsUn-Adjusting the Tax Code by Taxing Adjusted Financial Accounting Income in the Inflation Reduction ActSend us a textDespite our best efforts to inform the world about the perils of taxing financial statement income, the Corporate Alternative Minimum Tax based on financial accounting income passed as part of the Inflation Reduction Act. Jeff and Scott discuss the adjustments to financial accounting income that are part of the act, and describe how these adjustments will result in a situation where some firms will report high profits to shareholders and low or no tax, despite the minimum tax.
2022-09-0734 minTax ChatsTax Inspectors Without Borders. A Conversation with Rusudan Kemularia.Send us a textScott and Jeff discuss a program called Tax Inspectors Without Borders with Rusudan Kemularia, Head of Tax Inspectors Without Borders. The program is part of the OECD and is connected with the OECD's BEPS as part of an effort to help provide developing countries with the tools necessary to enforce tax laws in the complex international tax arena.
2022-08-3132 minTax ChatsTax Tidbits from a recent Trip (which could be true!)Send us a textJeff and Scott discuss some interesting tax-related observations Jeff made while visiting Oxford University and Mannheim University in England and Germany.
2022-08-2425 minTax ChatsDoes the IRS really have guns? Debunking some recent fear mongeringSend us a textScott and Jeff discuss the $80 billion in additional funding that has been allocated to the IRS as part of the Inflation Reduction Act, or IRA. They also discuss the fact that the IRS owns and uses a variety of guns, ammunition, etc. They break down some of the fear-mongering headlines that have recently been in the press.
2022-08-1732 minTax ChatsThe Book Minimum Tax -- A Compilation of ThoughtsSend us a textIn this special episode, we compile several recordings that we have made over the past year related to the proposed alternative minimum tax on financial accounting earnings. The recordings are very much related to two op-ed articles Scott published in the Wall Street Journal, found here:Don’t Let Warren Politicize Accounting - WSJElizabeth Warren’s War on Accounting - WSJJeff has also written on the topic, including this letter to congress and an accompanying WSJ article that goes along with it:Letter to Cong...
2022-07-281h 22Tax ChatsTaxing Carried Interest with Vic FleischerSend us a textScott and Jeff discuss "carried interest" with Vic Fleischer, Professor of Law at UC Irvine. Carried interest is a special type of income that is taxed at favored capital gains tax rates, and is often associated with high earning individuals who manage private equity partnerships. One prominent example of someone who had significant income from carried interest was former presidential candidate Mitt Romney.
2022-07-2734 minTax ChatsTaxed by the Taliban with Ashley JacksonSend us a textScott and Jeff learn from Ashley Jackson how the Taliban create a tax. We discuss how the tax system evolved initially to generate revenue to fund the Taliban objectives, until it became a symbol of its legitimacy. We talk about how the tax system evolved from a system of forced extractions to the point where customer support numbers became available to report mistreatment.
2022-07-2028 minTax ChatsHow An Academic Changed Corporate Tax Reporting. A Conversation with Dean Lilian Mills on the Creation of Schedule M3.Send us a textScott and Jeff discuss the creation of schedule M3 with Lillian Mills, Dean of the McCombs School of Business at the University of Texas at Austin. Lil was instrumental in the creation of schedule M-3, which is form filed with the IRS that reconciles taxable income to financial accounting income. We talk about the opportunities that exist for academics, policymakers, and regulators to work together, and the unique environment that led to the creation of the M3. We also discuss some recent policy proposals that would impose tax on financial accounting income.
2022-07-1336 minTax ChatsAnti Progressive TaxationSend us a textScott and Jeff discuss some of the prominent arguments against progressive taxation.
2022-06-3031 minTax ChatsTaxing Churches with Lloyd MayerSend us a textScott and Jeff discuss the tax status of churches in the U.S. with Lloyd Mayer, Professor of Law at Notre Dame University. We discuss the basics of tax law as it pertains to Churches. We also discuss special tax benefits that apply to ministers and other church employees. We consider the tradeoffs that exist between providing churches with tax benefits and relying on them to provide certain types of public goods and services vs taxing churches and relying on the government to provide those goods and services.
2022-06-2234 minTax ChatsWhy Administrative Law is Way More Important than You Thought! A conversation with Andy Grewal.Send us a textScott and Jeff ask Andy Grewal to describe administrative law, and why it is so important for taxes. We discuss how significant portions of tax laws are left to interpretation by the IRS or Treasury, and how these interpretations can have a material effect on the experience of taxpayers.
2022-06-1527 minTax ChatsHow Much Income do Firms Shift to Tax Havens? A Conversation w/Jennifer Blouin.Send us a textScott and Jeff discuss income shifting by multinational corporations with Jennifer Blouin. We talk about Jennifer's research that suggests some estimates of the amount of tax revenue the U.S. loses to income shifting are as much as ten times too large. These estimates are important because they drive policy discussions, including debates in the U.S. about tax reform, and abroad, through the OECD and other organizations. The conversation builds on some of Jennifer's recent work related to income shifting, including a paper entitled "Double Counting Accounting: How Much Profit of Multinational...
2022-06-1035 minTax ChatsProfessor Arthur Laffer on His CurveSend us a textScott and Jeff discuss the effects the tax rate has on how much taxes are raised with Professor Arthur Laffer, for whom the Laffer Curve is named. The Laffer Curve shows the likely relationship between tax rates and tax revenue. We hear the famous story of drawing the curve on a napkin. We ask Professor Laffer about the Laffer Curve, and we get his opinion on the revenue maximizing tax rate.
2022-06-0132 minTax ChatsTaxing Robots w/Rita de la FeriaSend us a textScott and Jeff are joined by Rita de la Feria @delaFeriaR to discuss her new paper (co-authored with Maria Amparo Grau Ruiz) called "Taxing Robots". The abstract of her paper reads in part: "In recent years, the idea of taxing robots has been progressively gaining momentum. The potential impact of automation on employment, and consequently on income tax revenues, has led many to defend the introduction of a tax on robots, or on the use of robots, to either compensate for the potential revenue loss, or to slow down the process of...
2022-05-2531 minTax ChatsWas Trump's Tax Reform Effective?Send us a textScott and Jeff discuss whether the Tax Cuts and Jobs Act (TCJA) was effective. Often referred to as the Trump tax cuts, or the Trump Tax Reform, recent commentators have argued that it was highly effective. For example, Tyler Goodspeed and Kevin Hassett argued in the Wall Street Journal the TCJA "delivered as promised" by increasing investment, wages, and government revenues. Academic research, however, paints a more nuanced picture. Jeff keeps a list of academic studies that evaluate different aspects of the TCJA on the UNC Tax Center website called The TCJA Effects...
2022-05-1833 minTax ChatsThe "Secret IRS Files": A Conversation with ProPublica's Paul KielSend us a textScott, Jeff, and Paul Kiel discuss the series of articles published by ProPublica based on a massive leak of private tax return data on the wealthiest individuals in the United States. The series of articles can be found here: https://www.propublica.org/series/the-secret-irs-files.We ask about privacy, transparency, tone, influence, leaked data, and more.
2022-05-1139 minTax ChatsTax Short - Why do quarters have ridges, and what does it have to do with taxes (and inflation!)?Send us a textJeff explains why quarters have ridges, and what it has to do with taxes and inflation.
2022-05-0603 minTax ChatsShould death eliminate taxes? A conversation about carryover basis with Kathleen ThomasSend us a textScott and Jeff discuss the idea of carryover basis with Kathleen Thomas. Currently, when someone dies with appreciated capital gains, they get a step-up in basis, meaning their estate pays no taxes on their accumulated gains. The downside is they have to die. An alternative would be to carryover the basis the the person who died had, which would make many tax planning strategies more difficult.
2022-05-0436 minTax ChatsA Bigger Burden for Billionaires? David Gamage on Biden's Mega Millionaire Minimum TaxSend us a textScott and Jeff discuss Biden's proposed Mega Millionaire Minimum Tax with David Gamage, one of the thought-leaders behind the proposal and its variations. We discuss the basics of what the minimum tax might look like. We discuss the strengths and weaknesses of this type of tax. The tax is intended to force very wealthy individuals like Jeff Bezos or Mark Zuckerberg to pay more tax, even if they do not have much income as currently the tax code currently defines income. We also discuss the idea of "notional equity" as a way for...
2022-04-2741 minTax ChatsProgressive Taxation: What is it? Why would we want it? Do we have it?Send us a textScott and Jeff discuss progressive taxation. While most agree progressive taxation is desirable, there is less agreement about how much progressivity is desirable, what it even is, and if our current tax system is progressive. Scott and Jeff tackle these issues by asking each other questions about taxes on income, property taxes, taxes on cigarettes, and other scenarios. They conclude that progressivity is a slippery subject, and, claims about progressivity should be carefully considered.
2022-04-2034 minTax ChatsShould we even tax corporations? It's not as obvious as you might think.Send us a textScott and Jeff discuss the reasons a corporate tax makes sense. The answers might surprise you. Among the least compelling arguments: corporations have a lot of income, corporations use infrastructure, corporations have special legal status. Among the most compelling arguments: corporations make efficient collection agents, corporations have cash, and taxing corporations allows the government to see what they are up to.
2022-04-1336 minTax ChatsCrypto Tax -- About as Simple as it Sounds. A Conversation with Tyler MenzerSend us a textScott and Jeff discuss Crypto taxes with Tyler Menzer, PhD student at the University of Iowa studying the tax implications of Crypto currency in the marketplace. We briefly discuss some of the basics, but, also discuss slightly more complicated crypto issues like airdrops and staking.
2022-04-0639 minTax ChatsA Private Score: Rich Prisinzano on the Penn Wharton Budget ModelSend us a textScott and Jeff talk with Rich Prisinzano of the Penn Wharton Budget Model about revenue scoring. Scott, Jeff and Rich discuss topics such as how precise revenue scores are, how private revenue scores are different from those provided by the government, how politicians might use private revenue scorers to get the best "price" for a piece of tax legislation, etc. They end with how Rich would think through scoring a hypothetical (and fictional!) tax proposal, the "Dividend Cut Tax".
2022-03-3046 minTax ChatsWhat is Tax Justice? A Conversation with Amy Hanauer, Executive Director of Citizens for Tax Justice and ITEPSend us a textScott and Jeff discuss tax justice with Amy Hanauer, Executive Director of Citizens for Tax Justice and its sister organization, ITEP (Institute on Taxation and Economic Policy). We ask Amy what a fair tax system would look like. We discuss problems with the current tax system. We touch on methods the government uses to redistribute income, like the earned income tax credit and the child tax credit. We briefly discuss corporate taxes, and Amy shares her view that corporations do not pay enough taxes.
2022-03-2336 minTax ChatsTax Short - Do the Girl Scouts have to pay taxes on their cookie income?Send us a textJeff explains how some non-profits owe income taxes on the unrelated business income, but, how because of the mission of the Girls Scouts, they don't pay taxes on the proceeds from the cookies sales.
2022-03-2204 minTax ChatsHave your Cake and Eat it too? Why Tax Accounting and Financial Accounting are Different.Send us a textIn this episode, Scott and Jeff discuss why financial accounting rules and tax accounting rules are different. They give some examples. They talk about some firms that have reported very high income while also paying very low taxes. They also talk about how the opposite happens, but doesn't get much media attention.
2022-03-1635 minTax ChatsTaxing Cannabis: A Conversation with Caroline WeberSend us a textScott and Jeff discuss Cannabis taxation with economist Caroline Weber. We chat about the history of cannabis taxation, the advantage of legalizing cannabis to make it easier to tax, the use of taxes to set a price floor, and other issues related to cannabis taxation. We also discuss whether the taxes collected from Cannabis production and sales are used to remedy some of the social ills that might arise from widespread cannabis use.
2022-03-0932 minTax ChatsProtecting People from Politicians by Pledge: A Chat with Grover NorquistSend us a textScott and Jeff interview Grover Norquist, president of Americans for Tax Reform (ATR). We discuss the Taxpayer Protection Pledge, which has been signed by many national and state-level politicians, including past presidents, many senators, sitting governors, and others. The signing is mostly partisan, with Republicans mostly signing, and Democrats rarely signing.Grover Norquist discusses his views on taxes and government, and argues that there is never a good reason to increase income tax collections.Grover Norquist describes how he believes raising taxes can lead to political trouble for Republican...
2022-03-0230 minTax ChatsAre tax boycotts a real thing?Send us a textScott and Jeff discuss tax boycotts. Some corporate mangers say they are careful with their tax planning because they don't want to make their customers mad--customers might not buy things from a company they perceive as overly aggressive with their taxes. In this episode, Scott and Jeff discuss a recent study by Jeff and co-authors Scott Asay (U Iowa), Jake Thornock (Brigham Young University), and Jaron Wilde (U Iowa) called "Tax Boycotts". We describe how the scorn of consumers might harm corporations that avoid taxes. Jeff and co-authors searched high and low for...
2022-02-2336 minTax ChatsThe Good Ol' Days of Bipartisan Tax Reform: A Conversation with Ken Kies about the Tax Reform Act of 1986 (TRA86)Send us a textScott and Jeff talk with Ken Kies about TRA86, the last major tax reform since the Tax Cuts and Jobs Act. Ken was the Chief Republican Tax Counsel of the House Ways and Means Committee during the process of passing TRA86. How bipartisan was the TRA86? Was Ronald Reagan involved in the details? How much did the lobbyists matter? This episode gets into the details of TRA86 from someone who was on the front lines of tax reform when it happened.
2022-02-1634 minTax Chats(Extra)Ordinary and (Un)Necessary? Write it off!!!Jeff and Scott discuss several business deductions that were claimed that are unusual, and might not be thought of as "ordinary and necessary" as required by tax law. Some of them turned out to be legitimate deductions and upheld when challenged in court.
2022-02-0927 minTax ChatsThe War Tax Resister: A Conversation with Lincoln RiceSend us a textScott and Jeff interview Lincoln Rice, Coordinator of the National War Tax Resistance Coordinating Committee, a group which would have you ask yourself "are you praying for peace, but paying for war?" We learn what it means to be a War Tax Resister. We discuss the risks, if any, of not paying taxes, and how the tax system is used by some as a tool for voicing opposition to government policies.
2022-02-0235 minTax ChatsTax Tune - Capital Gains Sea ShantySend us a textCapital Gains Sea ShantySung by Dyreng's DeductionsLyrics by Jeff HoopesThere once was a man who bought some stockIn a little firm they call gamestopThe price went up so he sold his sharesSittin on his gains so unawareThen, oh, the taxman comeTo tax his gains and stop his funOh, when, the taxin’ is doneHe’ll have some pennies and changeSo what could you do to stop the pain...
2022-02-0203 minTax ChatsTax Short - Can Stepped-Up Basis Help You Save Taxes?Send us a textScott explains the step-up in basis loophole. He describes how it can help you pass your wealth to your heirs tax efficiently.
2022-01-2804 minTax ChatsThe In(Ex)clusive Framework: A Conversation with Afton Titus on Why the Global Minimum Taxes Might Harm Developing CountriesSend us a textAre big countries bullying developing countries under the guise of the OECD's Inclusive Framework? It the framework really inclusive, or is it really an exclusive club of rich countries looking out for themselves? Jeff and Scott discuss these issues with Afton Titus who gives the African perspective.
2022-01-2631 minTax ChatsTax Short - Is Inflation a tax?Send us a textJeff talks about the relationship between taxes and inflation, and, introduces us to the term seigniorage.
2022-01-1902 minTax ChatsMartin Luther King Jr.'s Tax Perjury Trial: A conversation with Edgar DyerSend us a textMartin Luther King Jr. is the only person to have ever been tried for perjury with regards to state income taxes in Alabama. Jeff and Scott interview Edgar Dyer about the tax perjury trial of Martin Luther King Jr. in 1960. Eddie wrote an article entitled "A Triumph of Justice in Alabama: The 1960 Perjury Trial of Martin Luther King, Jr."Fred Grey, Martin Luther King's attorney, said of the trial, "No one would have predicted that an all-white jury in Montgomery, Alabama, the Cradle of the Confederacy, in May 1960, in the middle...
2022-01-1533 minTax ChatsRealizations about RealizationSend us a textScott and Jeff discuss the principle of realization. As a general rule, most income taxes are levied when it is realized, usually when a transaction takes place. For example, gains in shares held as an investment are not taxed unless those shares are sold. The principle of realization also manifests itself in a variety of interesting ways, which we discuss in this episode.
2022-01-1235 minTax ChatsTax Tune - Taxes Taxes, Where's my Refund?Send us a textTaxes Taxes, Where's my RefundTaxes TaxesWhere’s my refund?Taxes TaxesI’m so angryCuz I paid too muchand April is so far away (far away)Taxes TaxesWhere’s my refund?Taxes TaxesGive me what is dueCause I need moneyHelp me pay my debtsI know I’ve claimed some thingsThat might not be legitMy daughter’s wedding co...
2022-01-1102 minTax ChatsTax Short - Should You Invest in a Roth IRA or a Traditional IRA?Send us a textScott discusses one of the factors contributing to whether you should invest in a Roth IRA or a Traditional IRA.
2022-01-1004 minTax ChatsTax the Billionaires' (Income)!? A Conversation with Brian Galle About Taxing Unrealized Gains.Send us a textScott and Jeff welcome Brian Galle, Professor of Law at Georgetown University to discuss the proposed Billionaires' Income Tax, which is a tax on unrealized capital gains. Brian and 218 other law professors and economists recently sent a letter to Congress in favor of the proposal. The letter can be found here. We discuss how the tax is being positioned as being different from a wealth tax. We question whether the tax might eventually be expanded to everyone, not just billionaires.
2022-01-0537 minTax ChatsTax Short - How many billionaires are there, and, how much are they worth?Send us a textJeff describes how knowing how many billionaires there are and how much wealth they have, a key component to estimating how much revenue many new taxes that target the ultra-rich would bring in, is more complex than you might think.
2022-01-0404 minTax ChatsAn Audio Tour of the Tax MuseumSend us a textJeff talks with Scott about a few of The Tax Museum's thousands of items. Jeff shows Scott a stack of expired lotto tickets purchased on EBAY and describes what they have to do with tax fraud. They discuss some old revenue stamps, an actual stamp from Burkina Faso, and other items that have amazing connections with taxes.
2021-12-3036 minTax ChatsTax Tune - Tax AdviceSend us a textLyrics by Scott DyrengSung by Scott Dyreng and Three of Dyreng's DeductionsLyricsTax Advice, Tax AdviceSo many options confuse me.Roth I R A401-KWhich is the one that best suits me?Pay my tax now or pay when I am oldMaybe not pay foreverTax Advice, Tax AdviceHelp me choose which is better Pay the Price, For the AdviceThat will help m...
2021-12-2703 minTax ChatsTax Short - Can You Reduce Your Tax Bill by Bundling Charitable Contributions?Send us a textScott describes a year-end tax planning technique called bundling.
2021-12-2704 minTax ChatsI'll Have One Large Offensive Lineman with a Tax Deduction on the Side, Please. (A Conversation with Brian Mittendorf.)Send us a textScott and Jeff are joined by Brian Mittendorf from THE Ohio State University to discuss not-for-profit entities. We discuss the recent creation of Horns with Heart, a not-for-profit entity recently created to pursue charitable causes using the Name, Image, and Likeness (NIL) of offensive lineman for the University of Texas football team. If this arrangement proves to be legitimate, not-for-profit entities could proliferate as a way to facilitate NIL deals and pay college football players, while allowing donors to make tax deductible contributions to their favorite football players.
2021-12-2236 minTax ChatsTax Short - What do Taxes Have to Do with Christmas?Send us a textJeff describes what taxes have to do with Christmas. Mary and Joseph went to Bethlehem to be taxed (or maybe to be counted, so they could be taxed).
2021-12-2103 minTax ChatsTax Tune - Away to Pay TaxesSend us a textAway to pay Taxes (to the tune of Away in the Manger)Lyrics by Jeff Hoopes, Sung by Stacey HoopesOh Joseph and MaryThey were there for a taskThey came to the cityTo pay their taxBut as they remitted The tax on their worthOh Mary, a virginShe had to give birth They went to the cityBy Caesar’s decreeAs taxes touched JosephThey affect you and meWhen w...
2021-12-2103 minTax ChatsDo You See OECD? A Discussion with Tom Neubig on the OECD's Global Minimum TaxSend us a textScott and Jeff discuss the OECD's Base Erosion and Profit Shifting (BEPS) project with Tom Neubig, a former Economist with the OECD. We answer basic questions about the OECD, BEPS, Pillar One and Pillar Two, which includes the proposed global minimum tax. The project is designed to stop the "race to the bottom" and to prevent large multinational companies from shifting their income to low-tax jurisdictions like tax havens. We also briefly discuss how country by country reporting will help with analysis after implementation.
2021-12-1536 minTax ChatsTax Short - Why is it so Hard to Tax Giant Multinational Companies?Send us a textScott describes why it is so difficult to tax giant multinational companies.
2021-12-1305 minTax ChatsTax Short - Don’t let Fear Of Missing Out (FOMO) get in the way of tax loss harvestingSend us a textIn a recent episode of Tax Chats, Scott and Jeff had a little disagreement over a potential downside of tax loss harvesting. In this short, Jeff summarizes his argument that in tax loss harvesting, you should not delude yourself into thinking there is something special about the stock you hold. You should not decide not to tax loss harvest because you might miss out on a stock going up in value--don't have tax loss harvesting FOMO.
2021-12-1304 minTax ChatsCapitalizing on Capital Gains Tax BreaksSend us a textJeff and Scott discuss how to legally reduce or avoid paying capital gains taxes. We use Satya Nadella's recent sale of half his stake in Microsoft as an example. To reduce the capital gains tax burden, one can:Change the timing of capital gain incomesell before a new tax is imposed, or after an old tax is retiredwait to sell until capital gain becomes "long term," currently after 1 yearwait to sell to take advantage of the power of deferralExampleshttps://www.journals.uchicago.edu/doi/abs/10.17310/ntj.2015.3.02 https://tax.unc.edu/i...
2021-12-0836 minTax ChatsTax Short - How can I pay nothing in taxes?Send us a textJeff explains how it should never be the goal to pay nothing in taxes, but, rather, as far as your financial life goes, to maximize your after-tax income.
2021-12-0603 minTax ChatsTax Short - Do Domestic Companies Pay More Tax than Multinational CompaniesSend us a textScott discusses whether domestic companies pay more tax than multinational companies. The episode addresses a commonly held belief that domestic firms are at a tax-based cost disadvantage. An example would be this Op-Ed, published by Bloomberg.
2021-12-0604 minTax ChatsIgnoring Scoring is DeploringSend us a textWe discuss "scoring" with Brigham Young University Professor John Barrick. Scoring is the process used to determine how much revenue a tax bill will generate, or how much revenue a spending bill will consume. Scoring is a major part of every tax bill, including the Biden's Build Back Better plan. For example, the most current scoring of the BBB can be found here. More information can be found here:jct.govhttps://www.jct.gov/operations/frequently-asked-questions/https://www.cbo.gov/about/products/ce-faqClarification: O...
2021-12-0135 minTax ChatsTax Short - Do Most Public Companies Pay Low or No Tax?Send us a textScott discusses the common narrative that most large publicly traded companies pay very low or no income tax.
2021-11-2903 minTax ChatsTax Short - What is a fair tax?Send us a textJeff talks about fair taxes. People always say they want a fair tax system, or that they want people to pay their fair share. What would a fair tax system look like?
2021-11-2903 minTax ChatsInsights or Incites? Elizabeth Warren's Report on "Tax Dodgers"Send us a textJeff and Scott discuss a recent report released by Senator Elizabeth Warren's office entitled "Tax Dodgers: How Billionaire Corporations Avoid Paying Taxes and How to Fix It" available here. We discuss the weaknesses in the report, including the language to describe tax avoidance, and the facts underlying the data in the report. We describe how the report does not appear to provide many insights, but instead appears designed to incite anger against large profitable corporations.
2021-11-2334 minTax ChatsTax Short - Is a 4% Wealth Tax the Same as a 120% Income Tax?Send us a textJeff discusses wealth and income tax rates. We are used to thinking of tax rates on income. How do we think about tax rates on wealth? Luckily, there is an easy way to convert a wealth tax rate into an income tax rate, and, the result may surprise you.
2021-11-2303 minTax ChatsTax Short - How Much do Millionaires Pay in Tax?Send us a textScott discusses how much tax millionaires pay. Millionaires and Billionaires are often used in the same way to describe someone who is rich. But the taxes levied on the typical millionaire are vastly different than the taxes levied on many Billionaires.
2021-11-2304 minTax ChatsAsk the Option Tax-OlogistSend us a textWe discuss tax issues related to stock options. The discussion is related to Elon Musk's recent infamous twitter poll, in which he asked his followers if he should sell some of his shares in Tesla. Scott buys an option in real time. Related articles are found here: 1. CNBC: https://www.cnbc.com/2021/11/07/elon-musk-faces-a-15-billion-tax-bill-which-is-likely-the-real-reason-hes-selling-stock.html2. Fortune: https://fortune.com/2021/11/10/tesla-elon-musk-stock-options-tax-mistake/ 3. Reuters: https://www.reuters.com/business/autos-transportation/teslas-musk-says-stock-sale-impact-closer-tax-maximization-2021-11-14/
2021-11-1731 minTax ChatsTax Short - The Pros and Cons of Taxing GAAP (the Amazon Tax)Send us a textScott explains why companies have two separate accounting systems, one for reporting income to shareholders (GAAP), and one for reporting income to the IRS. He describes some pros and cons to taxing GAAP, as has been proposed by Joe Biden, Elizabeth Warren, and others.
2021-11-1506 minTax ChatsTax Short - Why Don't Billionaires Pay Tax?Send us a textJeff describes why many billionaires don't pay any tax (or at least pay rates of tax that are far lower than millionaires). He discusses the idea of unrealized gains.
2021-11-1502 minTax ChatsThe BBB (Build Back Better) PotpouriSend us a textWe discuss some of the not-so-talked-about provisions in the Build Back Better tax plan, including (but not limited to) tax credits for journalists and ebikes, credits for electric vehicles, and some of the complications that arise when trying to provide tax incentives only under specific circumstances. We discuss tax credits, refundable credits, phase outs, tax incidence, and more.
2021-11-1035 minTax ChatsTax Short - How Salesforce.com Paid No Tax on $2.6 Billion in ProfitsSend us a textScott describes how Salesforce.com used tax deductions from share-based compensation to reduce its U.S. tax bill to $0 despite reporting billions in profits to shareholders.
2021-11-0804 minTax ChatsTax Short - How Much Tax Should a Socially Responsible Firm Pay?Send us a textJeff briefly discusses how much tax a socially responsible firm should pay. He explains that a dollar of tax paid might translate to one fewer dollar used for other socially responsible objectives.
2021-11-0802 min
Financial ReconMoney, Money, Money...Corporate Taxation with Dr. Scott DyrengLately, we have all seen the headlines & heard the rhetoric:Company X pays No Income Taxes!Its bound to set anybody off on a tirade…And as politicians squabble as to how best address this issue, one has to wonder, is perception reality?In this episode of Financial Recon, I am joined by Professor Scott Dyreng of The Fuqua School of Business at Duke University, who provides a fascinating explanation of how to interpret financial statements versus tax returns, and what really is going on with these co...
2021-11-0839 minTax ChatsThe Tax on GAAP is Back (or at least proposed)Send us a textWe discuss the recently proposed 15% corporate minimum tax to be applied to financial accounting earnings. The idea was proposed by Senator Elizabeth Warren in 2019. At that time, we wrote several articles that were published in by various media outlets:WSJ: https://www.wsj.com/articles/dont-let-warren-politicize-accounting-11557089967The Hill: https://thehill.com/opinion/finance/439693-warrens-corporate-tax-solution-is-fundamentally-flawedA few months later, 11 Senators wrote a letter to the FASB in favor of an accounting change that would improve tax enforcement. We wrote a letter to the FASB urging them to disregard any...
2021-11-0533 minTax ChatsA Billionaires Tax? Is it a wealth tax? Could it happen?Send us a textWe discuss the recent proposal for a billionaire's tax. We describe the tax, discuss how it could force the very rich to pay more in tax, and the possible complications of such a tax.
2021-11-0533 minTax ChatsBuilding Back Better with SALT-y Tax Cuts for the Rich?Send us a textWe discuss the recently proposed removal of the federal tax deduction for state and local taxes. The restriction would largely benefit wealthy or high-income taxpayers in states with relatively high tax rates (California, New York, etc.) More information can be found at www.taxchats.org
2021-11-0431 min