How Tax Credits Shape Your Daily Spending Habits

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Oct 12, 2026 · 10m · transcript

We examine how indirect tax incentives like the child tax credit and energy rebates quietly influence consumer behavior more than direct government spending. Using the recent expansion of the clean vehicle credit as a case study, we break down why these targeted breaks often fail to reach lower-income households despite their political popularity. Lucas and Luna discuss the hidden complexity of refundable versus non-refundable credits, the administrative burden on small businesses trying to comply, and why economists argue that direct cash transfers might be more efficient than complex…