Salt, Taxes, and Tough Choices: Inside the Federal Budget Battle

Salt, Taxes, and Tough Choices: Inside the Federal Budget Battle

With Andrew Lautz,

Associate Director, Economic Policy, Bipartisan Policy Center

In this episode of Gross Domestic Problem, William is joined by tax policy expert Andrew Lautz, Associate Director of Economic Policy at Bipartisan Policy Center. Andrew unpacks the complexities of U.S. taxation, revealing that solving the national debt isn't as simple as raising taxes or cutting spending. The key insights are that the current tax system is highly progressive, with top earners paying most taxes, and that meaningful fiscal reform requires a balanced, bipartisan approach. Andrew emphasizes that taxation is more than revenue collection—it's a social contract that shapes economic behavior and national priorities. Other highlights include a fundamental challenge in finding a sustainable path that doesn't overly distort economic incentives, solutions in addressing the growing national debt, and more.

Key topics in today’s conversation include:

Andrew’s Background and Expertise (1:39)
Understanding Tax Policy (4:15)
Purpose of Taxation (6:36)
Political Challenges of Taxation (9:25)
Consumption as Economic Driver (16:12)
Taxing Paper Gains (20:07)
Impact of Market Fluctuations (23:24)
Understanding National Debt (28:14)
Tax Code Improvements (31:11)
Employer Benefits vs. Salaries (34:05)
Horizontal Equity in Taxation (38:37)
Trade-Offs in Tax Reform (40:45)
Current SALT Cap Debate (42:04)
Impact of SALT Cap on Taxpayers (46:16)
Philosophical Tax Questions (53:57)
Final Thoughts and Resources (56:19)

Gross Domestic Problem is a podcast from Millennial Debt Foundation focusing on America’s biggest financial crisis. Each episode, we break down how we got here, what happens if we don’t act, and the least painful way forward. There’s no do-nothing solution. Subscribe now at grossdomesticproblem.com and join the conversation.

About the Show

William Glass

William Glass is a leader in the national conversation on fiscal responsibility, serving as a key voice for the Millennial Debt Foundation. As a passionate advocate for responsible government spending and debt reduction, William works to engage policymakers, young professionals, and thought leaders in addressing America’s growing national debt crisis. Through his work with the Foundation, he champions bipartisan solutions and fosters meaningful dialogue on the economic challenges facing future generations. William brings a fresh perspective to fiscal policy, emphasizing the importance of long-term financial stability and responsible governance.

The Millennial Debt Foundation was launched in mid-2019 by Tennessean Weston Wamp and other millennial entrepreneurs to lead a generational conversation about fiscal stewardship, the role of the federal government and America’s deficit spending crisis. Inspired by the work of our early advisor, the late U.S. Senator Tom Coburn, M.D., the Foundation’s first major project was the Millennial Debt Commission. The business-led Commission is made up of 20 millennial business leaders from across the country working towards a framework for long-term deficit reduction and stabilization of the national debt. The business leaders have been advised by a cohort of current and former members of Congress, leading economists and policy experts. MDF is a nonpartisan, Tennessee-based 501(c)(3) nonprofit funded by individual donors, the Lynde and Harry Bradley Foundation, and Arnold Ventures.

Learn More at millennialdebt.org