Saturday, May 31, 2025

Latest

Trump Floats Eliminating Income Tax, Returning to 19th Century Tariff System

Former President Donald Trump discussed the possibility of eliminating federal income taxes during a Fox News appearance in the Bronx, suggesting a return to late 19th-century economic policies that relied primarily on tariffs for government revenue.

“It had all tariffs — it didn’t have an income tax,” Trump said during the segment. “Now we have income taxes, and we have people that are dying. They’re paying tax, and they don’t have the money to pay the tax.” 

While Trump first raised the idea of replacing income tax revenue with tariffs in June, he has not formally proposed ending the income tax system, and it remains unclear whether he means eliminating all federal taxes or just individual income tax.

Economic experts across the political spectrum have dismissed the concept as unfeasible. Currently, income and payroll taxes generate about 94% of federal revenue, while tariffs account for just 2%. The United States collected approximately $4.2 trillion in income and payroll taxes last fiscal year, far exceeding potential revenue from tariffs on the nation’s $3 trillion in annual imports.

Wendy Edelberg, former chief economist at the Congressional Budget Office, warned that attempting to raise sufficient revenue through tariffs could effectively halt international trade. “You’re going to send imported goods to zero, and then you’re going to have no tax revenue,” she said.

Such a shift would reverse the progressivity of the current tax system, where higher earners pay higher rates. Economists note that tariffs are regressive, raising prices on essential items like clothing and groceries, which disproportionately affects lower-income Americans who spend a larger percentage of their income on these goods.

On the campaign trail, Trump has also floated various tax exemptions, including breaks for police officers, firefighters, military service members, and specific types of income such as tips and overtime pay.

According to an analysis from the liberal think tank Institute on Taxation and Economic Policy, Trump’s overall tax agenda would benefit the wealthy while raising taxes on low-income Americans and significantly increasing the federal deficit.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Britain Plans ‘Tripwire Force’ for Ukraine as Trump Discusses ‘Dividing Assets’ with Putin

US President Donald Trump said he plans to discuss ending the war in Ukraine with...

Monday, March 17, 2025, 12:07:00 PM

Trump’s New Crypto Project Already Sounds Like A Disaster

Former US President and current Republican nominee Donald Trump’s sudden embrace of cryptocurrency with World...

Wednesday, September 4, 2024, 02:23:00 PM

Ontario’s Doug Ford Pushes Pandemic-Style Spending to Combat Trump’s Tariffs

Ontario Premier Doug Ford has proposed implementing substantial economic interventions reminiscent of pandemic-era spending to...

Thursday, January 9, 2025, 11:04:00 AM

SPAC DWAC Falls 11% After Announcing Proposed 12-Month Extension For Merger Deadline; Trump Asserts He Doesn’t Need Financing

The special purpose acquisition company associated with Donald Trump is ruminating its need for more...

Wednesday, September 7, 2022, 10:47:00 AM

OPEC+ Signals Resistance to Trump’s Price Demands

OPEC+ delegates are evaluating whether to delay planned output increases, citing weak market conditions, despite...

Tuesday, February 18, 2025, 12:44:00 PM