The Regulation of Paid Tax Preparers: A Conversation with John Treu

Send us a textJeff and Scott chat with Adam Michel of the Cato Institute about tax expenditures. Adam currently has on his X account the Tax Expenditure Madness brackets (also on his substack: https://adamnmichel.substack.com/). Adam sets up brackets like the March Madness NCAA basketball tournament,  but instead of pitting basketball teams against each other to establish the best team*, he has tax expenditures competing to determine which is the worst expenditure. Jeff, Scott and Adam chat about several sets of tax expenditures, and offer their somewhat tongue-in-cheek opinion about which ones are worst.*For example, by establishing that UNC women's basketball has won a national championship 1 time, compared to Duke's 0 times, or that UNC men's basketball has won the NCAA tournament 6 times, compared to Duke's 5 times. Of note is that of all teams with over 20 games played in the NCAA men's tournament, Duke has the highest winning percentage, which is only to say that they win a lot before they ultimately lose--they choke under pressure in the end.

Send us a text Jeff and Scott chat with Bill Gale of the Tax Policy Center about his new paper (with Oliver Hall and John Sabelhaus), "The Same But Different: How the Income Tax Affects Black, Hispanic, and White Households." We discuss how the bottom 70% of Black households, by income, pay less in tax than White households with similar incomes. This occurs because Black households have more dependents, on average, than White households, and children are tax advantaged in the U.S. In the top 30% of households, by income, White households pay less in tax because they are more likely to have tax-advantaged forms of income, such as capital gains. Across the first nine income deciles, Hispanic taxpayers pay less in tax, as Hispanic households tend to have more dependents throughout the income distribution. 

Send us a textJeff and Scott chat with Oyebola Okunogbe, an economist at the World Bank. They discuss tax enforcement in the developing world, including the challenges developing world countries face that more developed countries do not face, and, how those challenges shape tax systems. 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, take a short quiz, and earn your CPE certificate. 

Send us a textJeff and Scott talk about Elena Patel , an economics professor at the University of Utah, about her time working at the Council of Economic Advisors. Elena worked as a tax economist advising the chair of the CEA, who is an economic advisor to the President. Elena talks about how one gets this job, what one does in the job, what the CEA is general, and how the CEA interacts in a very political world.

Send us a textJeff and Scott chat with Rita de la Feria on tax fairness. Fairness is in the eye of the beholder, and tax fairness, in particular, appears to be particularly sensitive to whose eye is beholding.

Send us a textThis episode originally aired on January 15, 2022. We are releasing it for Martin Luther King day, January 20, 2025. If you already heard it and don't wish to hear it again, skip it!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 of the Confederacy, in May 1960, in the middle of all the sit-ins and all of the racial tension that was going on, would exonerate Martin Luther King, Jr. But it really happened." Coretta Scott King said of the trial, "A southern jury of twelve white men had acquitted Martin. It was a triumph of justice, a miracle that restored your faith in human good."  Dr. King said it was a "turning point" in his life. Tune in to hear about this triumphal tax trial, which was a turning point for Martin Luther King.

Send us a textJeff and Scott chat with Dan Walter's, an Opinion Columnist for CalMatters. They chat about Prop 13, a law that dramatically limits property tax increases in California, and was passed in 1978. Dan has been writing about California since 1975, and shares his perspectives on Prop 13 from having lived through and covered the debate surrounding its passage, as well as what effects Prop 13 has had since its passage.

Send us a textJeff and Scott chat with Seth Colby, a Tax Research and Planning Officer for the State of Hawaii. They discussed a recent policy change in Hawaii, where Hawaii dramatically reduced income tax rates, while increasing sales taxes, in an effort to both collect less revenue for lower-income Hawaiians, while generating additional revenue from those visiting Hawaii temporarily. 

Send us a textJeff and Scott chat with West Virginia University accounting professor, and lawyer, John Treu, about the regulation of paid tax preparers, including John's empirical evidence that they improve return quality and the Loving case.

Send 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.