The interview is here.

I still think it’s the case that when we come to, say, our tax system, and we ask ourselves, “Are we committed to the view that every tax rate on everything has to be the same?” There, I think, the answer is “no.” The current American system favors charitable donations. It favors donations to churches and to universities. And I think, in the long run, this is not only good for our prosperity, but it also reduces the size of government. If these institutions were not financed by donations as much as they are, it’s not that they would wither away, but that the state would have a more active role in these areas.

I make these sorts of arguments (the state has to do X, because otherwise it will end up doing Y, which is worse) often myself. They always look weaker when someone else uses them.

Tyler Cowen’s book is here.