How Tax Expenditures Are the Hidden Federal Budget

Every year, the U.S. government foregoes over $1.5 trillion in revenue through tax expenditures — deductions, credits, and exclusions that function like spending programs but rarely get scrutinized like direct outlays. Lucas and Luna explain what tax expenditures are, how they distort fiscal policy, and why the mortgage interest deduction alone costs more than the entire Department of Housing and Urban Development. They discuss proposals to cap or convert them into direct spending, and what that would mean for taxpayers. This episode uses real numbers from the 2026 Joint Committee on Taxation report to make the abstract concrete. Listeners will learn why the term 'tax break' is misleading and how these hidden subsidies shape everything from homeownership to retirement savings. #TaxExpenditures #HiddenFederalBudget #MortgageInterestDeduction #TaxPolicy #FiscalPolicy #Economics #JointCommitteeOnTaxation #TaxBreaks #TaxExpenditureBudget #TaxReform #CorporateTax #IndividualTax #HousingPolicy #RetirementSavings #EmployerSponsoredInsurance #CapitalGains #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo