How Government Tax Expenditures Are a Hidden Budget

Most people think the federal budget is just what Congress spends each year. But there's a parallel budget nobody votes on: tax expenditures. In this episode, Lucas and Luna break down how the US government loses over $1.6 trillion annually through tax breaks, deductions, and credits — more than the entire discretionary budget. They explore the mortgage interest deduction, the carried interest loophole, and why tax expenditures disproportionately benefit the wealthy. Using the Tax Policy Center's 2025 data, they explain why these 'tax subsidies' are often harder to reform than direct spending, and why they distort economic behavior in ways most people never notice. If you've ever wondered why your tax return is so complicated or why some industries get special treatment, this episode explains the invisible spending that shapes your taxes. #TaxExpenditures #HiddenBudget #TaxPolicy #GovernmentSpending #MortgageInterestDeduction #CarriedInterest #TaxBreaks #FiscalPolicy #Economics #PublicFinance #TaxReform #WealthInequality #BudgetProcess #TaxCode #FexingoBusiness #BusinessPodcast #LucasAndLuna #PodcastEpisode Keep every episode free: buymeacoffee.com/fexingo