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US: Trump Proposes To Abolish Federal Income Tax!

Within days of taking charge as the US President, Donald Trump signed sensational executive orders like banning birthright citizenship, high alert on the Mexico border, and even the mass deportation of illegal immigrants in the country.

In yet another sensational proposal, Donald Trump announced his intention to abolish the federal income tax in the United States. He made this proposal during his speech, arguing for a return to a tariff-based economic system.

Trump said, ‘Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens.’

Trump’s proposal involves eliminating Federal Income Tax, meaning no more personal income taxes, potentially leaving more money in the pockets of American citizens. Implementing high tariffs in imports with specific rates like 20 percent for most countries and a 60 percent tariff on Chinese goods, aims to generate revenue traditionally collected from income taxes.

However, the opposition, Democrats criticized the proposal as fiscally irresponsible predicting an increase in inflation, and national deficit which could lead to a trade war.

The federal government collects over $2 trillion annually from income taxes and tariffs would need to be extraordinarily high to make up for the number. Also, international trade relations could be affected.

This post was last modified on 28 January 2025 8:00 pm

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