Carrot and Stick
from Title 26 Hosted by Benjamin Lehman, CPA
Taxes aren’t just about raising revenue—they can also change behavior. In this episode, we look at how Congress uses the tax code to reward choices it wants to encourage and make other choices more expensive. From retirement savings and charitable giving to deductions for interest on qualifying U.S.-assembled cars, tax incentives can act as the carrot, while excise and carbon taxes show how taxation can become the stick. Sometimes the strangest parts of the tax code make more sense when you ask one question: What behavior is the government trying to encourage?
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