Episode 22

How the rich escaped taxation. Ray Madoff’s argument, revisited.

Published on: 21st August, 2026

Over the last 40 years, many of the wealthiest Americans have effectively seceded from taxation.

While regular Americans - from teachers to surgeons - often pay between 25 and 50% of their income in taxes, lots of billionaires pay 5% (or less) in taxes each year. And their heirs can inherit fortunes tax free.

How have we let this happen? And why don't more people know about it?

Boston College scholar Ray Madoff - author of The Second Estate - talks about what's going on.

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About the Podcast

It Turns Out
"It Turns Out" reveals the hidden realities reshaping our world—from how marriage impacts inequality to the way that the tax code has transformed wealth.

Through conversations with experts who challenge conventional wisdom, award-winning journalist Kara Miller focuses each episode on groundbreaking research, changing how listeners see society, economics, technology, and human behavior. “It Turns Out” delves into data that directly impacts your life—whether you know it or not.

You can reach us at info@itturnsoutshow.com

We gratefully acknowledge the support of the Alfred P. Sloan Foundation. This work was done under Grant No. G-2025-79141.

About your host

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Kara Miller

Kara hosted the nationally-syndicated public radio program Innovation Hub, which she launched. The program won the 2021 Clarion Award for best Radio Talk or Interview Program and aired on more than 100 stations, including in New York, Houston, Philadelphia, Chicago and Washington, D.C. It spotlighted compelling thinkers, including Steve Wozniak, Sherry Turkle, Yo-Yo Ma, Walter Isaacson, and Sal Khan.

She writes “The Big Idea” column for The Boston Globe and is a frequent contributor to The Boston Globe Magazine.

Kara has moderated panels and spoken about innovation and entrepreneurship at events hosted by The International Women’s Forum, PBS Digital Media for STEM, Harvard Medical School, Google, and MIT Sloan.

She has taught at Babson College and at the University of Massachusetts.