Publications or reports from major economic think tanks such as Brookings Institution or Cato Institute

Trump Considers Eliminating Income Taxes, Replacing with Tariffs, per New York Times

Oct 24, 2024, 08:06 PM

Former President Donald Trump is reportedly considering a plan to eliminate federal income taxes entirely, replacing them with tariffs as the sole source of government funding. Drawing inspiration from the late 19th century when the United States relied on tariffs and had no income tax, Trump aims to radically reshape the federal taxation system. The New York Times reports that this proposal could potentially attract businesses, innovators, and entrepreneurs to invest in America. However, experts dispute whether tariffs alone could generate sufficient revenue to fund federal spending, noting a contradiction with Trump's spending proposals.