Official results from the US Presidential Election

Trump Proposes Replacing Income Tax with 47% Tariffs, Lowering Corporate Tax to 20%

Jun 14, 2024, 12:12 AM

Donald Trump has proposed a significant shift in U.S. tax policy by suggesting the elimination of federal income tax, replacing it with tariffs on imports. This proposal was made during a meeting with House Republicans at the Capitol Hill Club and business leaders. Trump argues that this 'all tariff policy' could potentially fund income tax cuts and extend his 2017 tax cuts. Analysts estimate that eliminating income taxes, which amount to $2.6 trillion annually, would require a 47% tariff on $3.8 trillion worth of imports. Additionally, Trump promised to lower the corporate tax rate to 20%, a move aimed at further reducing the tax burden on U.S. companies. This policy shift signals a more protectionist trade agenda if Trump is elected President.