Trump Floats Tariff-Based “External Revenue Service” to Replace Income Tax
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Former President Donald Trump is suggesting a radical shift in how the U.S. government is funded,proposing tariffs as the primary revenue source.
Former President Donald Trump is once again advocating for a significant change to the American tax system. He has repeatedly raised the idea of an “External Revenue Service,” funded by tariffs on imported goods, possibly eliminating the need for income taxes.
According to a recent post on his social media platform, “It will be a Blind,” Mr. Trump stated,suggesting that tariffs could virtually eliminate income taxes for individuals earning less then $200,000 annually.
The Return of Tariffs?
Before the introduction of income tax in the early 20th century,tariffs were a major source of revenue for the U.S. government. Mr. Trump’s proposal aims to bring back this approach, shifting the tax burden, at least in theory, to foreign entities.
“It will be a Blind,”
How Would It Work?
The concept involves replacing income tax with revenue generated from tariffs, which are taxes imposed on imported goods. The idea is that these tariffs would be paid by foreign companies selling goods in the U.S., effectively transferring the tax burden from American citizens to foreign entities.
