Trump says he'll eliminate income taxes. There's a problem with that.

[Diamond_Dog]

But, it makes a great sound bite for the low information voter.

**********

“We’re going to make a lot of money, and we’re going to cut taxes for the people of this country,” Trump said before boarding Air Force One for his return from Pope Francis’ funeral in Rome. “It’ll take a little while before we do that, but we’re going to be cutting taxes, and it’s possible we’ll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax.”

(snip)

To start, tariffs would need to be exceedingly high — significantly higher than the already historic levels at which the Trump administration has set them today.

The federal government raises about $3 trillion a year from income taxes. The United States also happens to import around $3 trillion worth of goods annually. So that means tariffs would have to be at least 100% on all imported goods for the levies to replace income taxes, said Torsten Slok, chief economist at Apollo Global Management, in a note to investors.

The United States’ effective tariff rate now stands at 22.8%, according to Fitch Ratings. So to take the place of income taxes, tariffs would need to be more than four times higher than they are now — and America’s new tariff rate is already by far the highest of any developed country and has threatened to plunge the US and global economies into a recession.

But replacing all that tax revenue is not even as simple as doubling the price of everything that comes into America, Slok notes: As prices rise, demand trails off. That’s why America’s largest companies this earnings season have said that Trump’s trade policies are raising costs and leading consumers to spend less on practically everything — from airline tickets to burritos.

“The challenge is that it is unclear what will happen to sales if all imported products double in price,” Slok said. “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.”

In other words: To fully replace income taxes, tariffs may need to be set so high that they quadruple the price of everything that comes into the country from abroad.

More
https://www.cnn.com/2025/04/28/business/taxes-trump-tariffs/index.html

[Jerry2144]

1. The Republiklans have done that but only

Last edited Mon Apr 28, 2025, 06:04 PM - Edit history (1)

For the billionaires

[CaliforniaPeggy]

2. I'll say there's a big problem with that!

THE PEOPLE WHO BACK THIS IDIOCY ARE THEMSELVES IDIOTS.

[DENVERPOPS]

12. There is a bigger problem

getting people to pay for the products with ludicrous price tags resulting from his Tariff's......

He is completely Delusional. Any MD or Cop could take him into custody, and have him taken in for a 72 hour psychiatric hold after hearing anything he says..............SERIOUSLY

[dweller]

3. I'll go out on a limb here and predict

It’s probably unconstitutional for him to change tax rates and codes and
he’s also clinically insane


✌🏻

[Callie1979]

5. I imagine Congress could do it. But they're more concerned about re-election.

There are a few things we COULD do that might get a majority of support in the public, but they never seem to do those things.

[Callie1979]

4. The problem is Trump's a dumbass. nt

[BamaRefugee]

6. But there won't BE any tariffs.

He has stated over and over again that he’s going to bring back so many jobs and so many factories that we will produce EVERYTHING WE NEED.

So if we’re gonna make every single thing we need, we will import absolutely NOTHING, why would we?

And no imports means no tariffs means once again he’s feeding pablum to the poorly educated who are lapping it up like the chocolate fountain at the Golden Corral.

[tanyev]

9. Stop using logic and liberal thinking skills! Are you trying to make Dear Leader look bad?

[BamaRefugee]

10. I guess I subconsciously want to be first in line when they load me into that box car to be "re-educated"

[Dave says]

7. It's a f'king Repub REGRESSIVE SALES TAX

The low info voter still believes the lies TFG tells about tariffs? The producing nation pays them?

Reminds me of the old George Carlin bit: Think how dumb the average person is; then realize half the nation is dumber than that!

(Not a nice sentiment, it's Carlin's bit, not mine. But given we re-elected TFG, what he says is true. What else can we conclude?)

[Conjuay]

8. Actually he might do that.

When no one has an income
we won't have to pay income tax!

[mdbl]

11. And since no one will be buying most of the products

How will increasing tariffs help?

[Javaman]

13. If that happens the country craters

One of the best quotes I’ve ever heard regarding taxes is “taxes are the entry fee to civilization”

[Silver Gaia]

14. One of the biggest problems with that nonsense

is that people who don't make enough to actually pay taxes WILL BE TAXED by the fucking high prices caused by his ridiculous tariffs.

[sakabatou]

15. And yet, there would still be state taxes

[BurnDoubt]

17. LOTS of State Taxes.

And THEN the hue and cry because most of the Red states are being subsidized by the more productive Blue states to some degree.

[BurnDoubt]

16. Couldn't think himself out of a wet paper sack.

[slightlv]

18. This is devastating, to say the least.

People are naturally going to hold on to all they can of their money to insure their bills are paid and there's at least some food in the house to eat. There won't be any left for rebuilding, remodeling, replacing anything.. let alone to waste on electronic devices and frivolous "wants." It truly will be a return to the Dark Ages where the meaning of life is just to survive. As that will be the case for 99% of us, throw out Maslow's Hierarchy of Needs. Humankind will have to go threw another massive die-off and a new renaissance in order to start to evolve once again. Until then, I fear it'll be close to a Mad Max dystopia, with these militias and new nazi wannabes tearing up everything and everybody... as well as stealing what they can (like the Russian soldiers die when they first crossed into Ukraine and stole everything that wasn't nailed down).

I don't think we'll get the Magas to understand what their lord and savior has in store for them until they're deep into it, themselves. And by then, so the rest of us will be. There's just no shaking their faith in their faux god.

[William Seger]

19. I'm tempted to believe he really is that stupid

... but that just seems to be so stupid that, if I had to bet, my money would on the deliberate, self-serving lies of a psychopath who has no fear whatsoever of ever being held accountable.