US President Donald Trump has become an enemy of many countries with his tariff policies. Especially America’s tension with China has increased to a dangerous level. Trump’s policies are also being criticized in America. However, Donald Trump says that what he is doing is in the interest of the country and the countrymen. He has once again reiterated that the tariff can open the way for the countrymen and trump hints at ending income tax.
Donald Trump plans to abolish the income tax system in the US and implement the old tariff system. He says that instead of making other countries rich by imposing taxes on our people, we have to make our people rich by imposing tariffs on foreign goods. Trump believes that now is the time to return to the system that made America rich and powerful. The decisions taken by Trump in the last few days are quite consistent with his plan.
There was no income tax earlier
Trump said in a conversation with Fox News that we can replace income tax with tariffs. It is more likely that we will be able to raise so much money from tariffs that it can replace income tax. He further said that earlier, we did not impose income tax. This system came in 1913. Now we have to return to the old system. We should make our people rich by imposing tariffs on foreign goods instead of making other countries rich by imposing taxes on our people.
Donald Trump said about the earnings of America from tariffs that we were earning two billion to three billion dollars per day. We have never earned so much money. Trump has already expressed his desire to abolish income tax many times. Some time ago, Commerce Secretary Howard Lutnick had said in a conversation with Fox News that Donald Trump’s goal is to abolish the Internal Revenue Service (IRS), which is the US department that collects income tax. He said that Trump has announced the Internal Revenue Service (IRS), and his goal is basic—to abolish the Internal Revenue Service and collect from all outsiders.
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Donald Trump, while announcing the establishment of the Internal Revenue Service in January this year, said that this agency would be responsible for collecting tariffs and other revenues from foreign countries. He had said that we have been taxing our people using the Internal Revenue Service (IRS) for a very long time. Now it is time to change it. After this, he again made his intentions clear in the Republican conference held in March. President Trump had said that earlier, we did not impose income tax, and now we have to return to the old system. We should make our people rich by imposing tariffs on foreign goods instead of making other countries rich by imposing taxes on our people.
Donald Trump may want to abolish income tax through tariffs, but experts do not think that such an outcome is possible at present. Tax Foundation senior economist Alex Durante believes this proposal is far from reality. He said tariffs were a major source of federal revenue during the 19th century, but US spending has increased significantly since then. According to an analysis by the Tax Foundation, the US federal government spent 22.7% of its gross domestic product (GDP) in 2023, which is about 10 times the economy of the period when tariffs were the primary source of revenue. Durante said that 21st-century government spending cannot be done with the 19th-century tax system.
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