Trump Proposes Abolishing Income Tax in Favor of Import Tariffs

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In a bold economic proposal, U.S. President Donald Trump suggested eliminating income tax for American citizens, asserting that this would enhance disposable income for families and individuals. Speaking on January 27, 2025, Trump emphasized the need to revert to a tariff-based system that historically strengthened the U.S. economy between 1870 and 1913. He stated, "Instead of taxing our citizens to enrich foreign nations, we should be taxing foreign nations to enrich our citizens," calling for across-the-board import tariffs to offset revenue losses from the proposed income tax cuts.

Trump plans to establish the External Revenue Service to manage the collection of these tariffs, which he claims would generate significant revenue from foreign sources. This proposal aligns with his broader agenda to bolster domestic revenue while repositioning U.S. trade policies. Experts and critics have raised questions about the feasibility and economic implications of such changes.

Officials have yet to provide detailed plans regarding implementation and projected outcomes.

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