Summer School 2: How taxes change behavior and the economy

Planet Money

2025/07/16

Overview Shownote Highlights Transcript Chapters Pins

Shownote

We all know the government uses taxes to pay for things. But what about using taxes to control behavior? This week on Summer School, Professor Darrick Hamilton of The New School, helps us explore the true power of the tax code. Can taxes help lift people o...

Highlights

Taxes are often seen as a necessary burden, but they can be much more than just a way to fund government operations. They can shape behavior, influence economic decisions, and even help address societal challenges like inequality and environmental harm. This episode dives into how the tax code can be used as a tool not only for generating revenue but also for driving change.

03:05

Taxes reflect societal values by creating winners and losers through differential treatment of income types.

09:49

The EITC gives low-income workers financial incentives to earn more, unlike traditional welfare.

23:53

Pigou proposed a framework to address the societal costs of industrial pollution.

32:11

Taxes can change behavior by addressing negative externalities like sugary drinks and junk mail.

Chapters

How Taxes Can Shape Society and Encourage Good Behavior

00:00

Putting People First: The Earned Income Tax Credit in Action

06:33

Who Pays? Understanding Fairness in Tax Systems

17:49

Can We Tax Ourselves Into a Cleaner Future?

29:02

Transcript

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