US Presidential elections 2024: No income tax for US citizens? Donald Trump says if elected president…
FILE PHOTO: Former U.S. President and Republican presidential candidate Donald Trump speaks to the media following meetings with Republicans on Capitol Hill, at the National Republican Senatorial Committee (NRSC) headquarters in Washington, U.S., June 13, 2024. REUTERS/Evelyn Hockstein/File Photo
US Presidential Elections 2024: Republican presidential candidate Donald Trump proposed an “all tariff policy” on Thursday to eliminate the need for income tax in the United States, CNBC reported citing sources.
As per the report, Trump discussed utilising tariffs as leverage in negotiations with problematic entities, CNBC reported quoting another source present at the meeting held with GOP lawmakers at the Capitol Hill Club in Washington, D.C.
The comments indicate that Trump, known for promoting tariffs as a versatile tool in foreign policy during his initial term as president, is contemplating a significantly more protectionist trade agenda should he win against US President Joe Biden in November.
Trump later mentioned in a Truth Social post on Thursday morning, “lots discussed, all positive,” but did not elaborate further.
Critics swiftly reacted to Trump's suggestion of replacing income taxes with tariffs.
In a post on X, David Kamin, professor at New York University, said, “Here's the thing: The income tax has its flaws. But, the bottom line is it raises ~$2.5 trillion per year in progressive fashion. Broadly substituting tariffs for income tax is a sure way to hit hard, low and middle income Americans and reward top.”
CNBC reported citing Catherine Rampell, an op-ed columnist for The Washington Post, highlighted the potential impact of Trump's tariff proposal, noting that it could effectively result in a substantial tax increase for lower and middle-income classes, stating, “this sounds like a huge tax increase on the lower/middle income classes.”
Trump's visit to Capitol Hill to engage with Republican lawmakers and business figures marked his first return to the area since January 6, 2021, when, as president, he encouraged his supporters to rally to contest his electoral defeat to Joe Biden. Rampell's analysis highlights potential concerns regarding the fairness and distributional impact of Trump's proposed tariff policy.
(With inputs from agencies)