Donald Trump Shares How U.S. Can Remove the Income Tax for all Citizens
President Donald Trump has recently suggested that revenue from tariffs could potentially replace the federal income tax, asserting that "there is a chance that the money from tariffs could be so great that it would replace income tax."
This proposal has sparked significant debate among economists and policymakers.
Trump’s administration has implemented substantial tariffs, including a 104% cumulative tariff on Chinese imports and a 25% tariff on goods from Canada and Mexico. These measures aim to address trade imbalances and bolster domestic industries.
However, economic experts express skepticism about the feasibility of replacing income tax revenue with Trump’s tariffs. The U.S. federal income tax generates approximately $2 trillion annually, while total imports in 2023 were about $3.1 trillion. To match income tax revenue solely through tariffs would require an average rate of nearly 70%, a figure considered unrealistic due to potential reductions in import volumes and adverse economic impacts.
Critics also highlight that tariffs function as a regressive tax, disproportionately affecting lower- and middle-income households by increasing the cost of imported goods. Estimates suggest that such tariffs could cost the average U.S. household an additional $1,600 to $2,000 annually. In response to these concerns, the Liberty Justice Center has filed a lawsuit challenging the constitutionality of the new tariffs, arguing that only Congress has the authority to impose taxes and tariffs.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
