Donald Trump Crypto Policy Revamp? A new proposal to replace income tax with tariffs sparks debates nationwide – in this article find out: how will it affect you?
Trump dropped a bombshell on Republican lawmakers this week, pitching that the US kill federal income tax and replace it with tariffs. The idea lit up debates nationwide.
Let’s explain what’s happening for you in caveman terms.
The Income Tax Erasure, Explained in Caveman Terms
Do you know all that money you lost in your paycheck? You would get to keep it.
Money spent on taxes is 35% for average Americans, and specifically from income taxes is 14.9%.
If he ACTUALLY ran on eliminating the income tax, he could win in a landslide. He really should do it. It’s genius; imagine Democrats having to go on camera or in ads and say, “We’ll make sure you keep paying income tax.”
Most intriguing policy idea from the GOP meeting at the Capitol Hill Club this morning:
Trump briefly floated the concept of eliminating the income tax and replacing it with tariffs. 🧐 pic.twitter.com/hw0k8gwlGa
— Thomas Massie (@RepThomasMassie) June 13, 2024
The immediate criticism of a policy like this is that everything costs 4x more, but at least you don’t have 15% (or more) taken from your paycheck.
While this would result in a stark increase in foreign goods, in the long term, it could lead to a massive surge in US manufacturing jobs.
Effectively, Trump’s model would look like this:
- No income tax. 0%.
- Imports are taxed at 50% of import value.
- Effect: More American jobs and US factory production
- Ostensibly, Americans buy less foreign goods outside of what they need and more American
All of this could kickstart U.S. manufacturing, giving the U.S. greater autonomy.
Hey, Remember When Biden Was Going to Forgive Student Debts?
Yeah, us, too. Words mean very little to politicians.
What Trump does have going for him is that, according to the media, everything he does is”unprecedented.” So, if such a thing were to happen, Donald Trump would be one of the only guys who could get it done.
Trump is also not the first Republican with a bold tax plan. During his presidential run, Ron DeSantis floated eliminating the IRS for a flat tax system.
“I would eliminate the IRS, have a single rate, and just do a flat tax,” DeSantis told CNN’s Kaitlan Collins earlier this year.
Furthermore, Ron Paul, during his 2008 and 2012 runs, pushed to kill federal income tax, banking on deep spending cuts and relying on excise taxes and tariffs instead.
DISCOVER: How to Buy Bitcoin Spot ETF in June 2024
So What Are The Odds of This Happening?
Anything is possible where we’re going. A little fiscal austerity could go a long way, especially when you have serious candidates like Ron Paul and Thomas Massie in your corner.
Why not? The government just prints more money when it needs it already. There is no need to tax people if they are going to continue inflating the money supply
However, even if Trump is serious, if it did happen, they could also put it back in after him.
Regardless, with the 2024 presidential race in full swing, Trump’s tax proposal is set to ignite fiery debates — the first of which is June 27.
EXPLORE: What are Bitcoin ETFs? A Beginner’s Guide
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
