During the conversation, Rogan suggested that Trump had seriously considered eliminating income taxes, to which Trump responded:
Yes, why not?
The former president also said that we cannot allow the enemy to come and take away our jobs, our factories and our families unless they pay a “big price,” which he said would be the imposition of tariffs.
Trump’s economic plans include comprehensive tax reform that focuses on dismantling the income tax system and implementing a tough tariff policy.
The ideas include eliminating income taxes on tips, overtime and Social Security benefits, and would also renew the 2017 tax cuts that expire in 2025. He also proposed tax exemptions for firefighters, police, soldiers and veterans.
However, the Tax Foundation, an independent research institute, estimates that eliminating taxes on tips, overtime and social security
alone would mean a loss of about $2 trillion over 10 years, and that cost would only increase with additional tax exemption proposals.
Trump sees his aggressive tariff policy as a way to offset those costs. His proposal would impose a 20% tariff on all imports, especially Chinese imports, which would see a rate of up to 60%.
At the same time, tax experts and economic analysts doubt that Trump’s tariffs would generate enough revenue to offset losses from eliminating income taxes, while they are sure to accelerate inflation.
Garrett Watson, a senior policy analyst at the Tax Foundation, explained that “it would not be possible to raise tariffs enough to cover income tax revenue, as imports would fall as tariffs rise.”
Watson added that
Trump’s tariffs are expected to raise $3.8 trillion over 10 years, while personal income taxes would generate $33 trillion over the same period.
In total, Trump’s entire tax plan, including tariffs, would add $3 trillion to the deficit over a decade. Watson stated, “The numbers don’t add up.”
Furthermore, Trump’s tariffs would be paid for by US importers, which would increase producer costs and could even lead to higher consumer prices while inflation has already started to moderate. Thus, these tariffs could essentially represent a new type of sales tax that would shift the burden more strongly to lower-income individuals.
Vice President Kamala Harris, the Democratic nominee, used the economists’ analysis of Trump’s tariffs as a communication point for her own campaign. According to Harris
it would be a sales tax on the American people.
The Democratic candidate added that “the 20% tariff on all imports as described by Trump would actually be a 20% sales tax on basic necessities for the average American worker and family.”
Cover Photo: Republican presidential candidate and former US President Donald Trump dances on stage during a campaign rally at the Suburban Collection Showplace on October 26, 2024 in Novi, Michigan. Photo credit: Anna Moneymaker/Getty Images.
Source: www.portfolio.hu
