Aaron is joined by two guests this week, first his wife Katherine, a financial professional, and second, returning guest Michael Dilaura, to discuss the new tax code. Katherine starts by discussing some of the positives and negatives of the tax code as well as the importance, rather than thinking of “rich vs. poor,” that we instead consider the importance of individual financial literacy and fiscal responsibility, and how no (despite what some claim) this is not something restricted by social or economic class, but rather something that everyone can learn and embrace.
Michael Dilaura then discusses his experiences working in politics when the tax code was passed, and how that relates to the current cultural zeitgeist of identity politics. Michael brings up how the reaction to the new tax code plays right into the current political culture of soundbites, and how we only talk in terms of team red or team blue rather than discussing the actual positives and negatives of policy. Aaron then brings up how much our cultural discussion of wealth plays into the relative deprivation hypothesis of prejudice.
The New York Times article that inspired this episode: https://www.nytimes.com/2019/04/14/business/economy/income-tax-cut.html?fbclid=IwAR2qqDJX9eoYwDBubJpNwjscFvKD4-qdjTDj8CuKchgRYrs-NFDM6Yp66P4
A Marketwatch article claiming that the tax code unfairly favors Republican-dominated states: https://www.marketwatch.com/story/trumps-tax-reform-appears-to-be-giving-more-money-back-to-republican-states-2019-04-23
An article on the intense reaction to the SALT caps: https://www.cnbc.com/2018/07/17/blue-states-file-suit-against-federal-government-over-new-tax-law.html
Liz Warren and AOC’s response to Chase Bank that Katherine and Aaron discussed: https://m.washingtontimes.com/news/2019/may/1/alexandria-ocasio-cortez-elizabeth-warren-slam-cha/
Bernie’s attempts to clarify the difference between democratic and authoritarian socialism: https://www.businessinsider.com/bernie-sanders-democratic-socialism-soviet-union-authoritarian-communism-2019-4
A link to Katherine’s website, “The Bookkeeping Artist”: http://bookkeepingartist.com/