This would certainly have impacts. Title gore on hn here though, this is almost certainly not going to happen and “Trump says” is an important qualifier.
Just a guess on my part but I would say that if I was trying to keep the population from selling assets and yanking investments if I knew I was about to do something that could shake confidence in the market.
I’m no economist but this seems like it would cause the government to now have conflicting priorities. The whole stated purpose of the tariffs were to boost domestic production.
But now if this were done, the US government would need less or the same domestic production to ensure the coffers are filled. If, by some magic wand, this passes and domestic production can meet all of our supply needs, what then?
First paragraph puts the mail in the coffin of this idea:
“Offsetting the revenue from individual income taxes would require over $2.5 trillion a year in tariff collections, more than 10 times what the government actually took in during the last fiscal year”
SCOTUS has yet to rule on whether the Trump tariffs are a revenue-raising alternative to income taxes, rendering them an unconstitutional intrusion into the exclusive power of Congress; or regulatory tools for foreign affairs, which would bring them within the power of the Executive Branch...
...seemingly an odd time for Trump to make the statement that income taxes could be eliminated soon due to tariffs.
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[ 5.6 ms ] story [ 26.5 ms ] threadBut now if this were done, the US government would need less or the same domestic production to ensure the coffers are filled. If, by some magic wand, this passes and domestic production can meet all of our supply needs, what then?
“Offsetting the revenue from individual income taxes would require over $2.5 trillion a year in tariff collections, more than 10 times what the government actually took in during the last fiscal year”
...seemingly an odd time for Trump to make the statement that income taxes could be eliminated soon due to tariffs.