America Income Tax: Trump’s proposal to impose tariffs instead of income tax is an attempt to shift the tax burden from American citizens to foreign imports. However, after its implementation, foreign goods may become expensive.
US President Donald Trump is in action mode since his victory. He is signing new orders every day and now he is preparing to abolish income tax from the country. Reducing tax is one of Trump’s election promises, but fulfilling this promise may prove costly for the US economy.
In such a situation, Donald Trump can replace income tax with tariffs. Trump said in his statement that he will start working with lawmakers to write new tax laws in the coming weeks, including renewing the tax cuts he signed in 2017.
BREAKING: Trump has said he could end income tax and replace it with tariffs.
“Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens.” pic.twitter.com/pPgiBdDh2o
— unusual_whales (@unusual_whales) January 28, 2025
Tax will be replaced by tariff
Trump’s proposal to impose tariffs instead of income tax is an attempt to shift the tax burden from American citizens to foreign imports. However, after its implementation, foreign goods may become expensive and encourage the purchase of American made products. This is a controversial idea of Trump which has both supporters and opponents. Those opposing this decision say that this may provoke retaliation against America in other countries.
Also, some experts believe that many American companies are dependent on the global supply chain, so increasing tariffs on imports can also increase the price of domestic goods, even jobs may be lost in some industries.
Trump prepares for tax cuts
The Trump administration has appointed billionaire investor Scott Bessant as the finance minister. Trump has given Scott Bessant the responsibility of tax cuts and deficit control. He stressed on 3 percent annual growth rate, deficit reduction and increasing domestic oil production by 3 million barrels per day.
