Trump Says Tariff Revenue Could Eliminate Income Tax in Future

TRUMP: I believe at some point in the not-to-distant future. You won’t even have income tax to pay because of the money we’re taking in (from tariffs).

One Response

  1. First, basic math says that’s nonsense. You can easily calculate how much a tax on Americans who import would need to bring in to match the current amount of income tax. The calculated tariff rate would be astronomical — and that’s without taking into account that when you tax a thing, people do less of it, so imports would fall, necessitating even higher tariff rates.

    Second, tariffs are a regressive tax, and income taxes are progressive. IOW, America’s federal govt under our current income tax system is mostly paid for by the rich. Switching the govt’s revenue to a tax on imports would shift the burden to the non-rich, who spend a much larger percentage of their income and net worth on imported goods than rich people do.

    Trump is a dangerous ignoramus.

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