Trump wants to ‘abolish’ the IRS and replace it with tariffs. Can it work?
CNN — No one wants to pay taxes, and practically every American dislikes the IRS. In other words: America will raise so much money from President Donald Trump’s tariff plan that Americans will no longer need to pay income taxes. “Given higher prices result in lower sales, it may require as much as 200% tariffs on all imported goods for the total tariff revenue to replace income taxes.” So now we’re potentially talking about quadrupling the price of everything that comes into the country from overseas and across the border: cars, electronics, drugs, clothing, shoes, energy, you name it. Even if consumers would accept much higher prices in exchange for zero income taxes, the plan still faces another potential problem: One of Trump’s stated reasons for tariffs is to incentivize companies to make stuff in America. Even after Lutnick’s comments, it’s still not — the executive order instructs the Secretaries of Treasury, Commerce and Homeland Security to investigate whether it would be possible to establish the ERS to “collect tariffs, duties, and other foreign trade-related revenues.” Meanwhile, the IRS is expected to fire about 6,000 workers Thursday, according to a source familiar with the agency’s plans.
US President Donald Trump hints at removing income tax and replacing it with tariffs
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