#TrumpTaxCuts This means that President Donald Trump wants to reduce or eliminate federal income tax as soon as the new tariffs come into effect, in order to use the expected revenues from these new tariffs to fund significant tariff reductions, especially for individuals with low incomes below $200,000, with the possibility of eliminating it for this group.
These tariff increases will compensate for the losses resulting from this tax reduction, allowing for a slight departure from relying on traditionally applied taxes.
1_ This tax model aims to increase consumer spending, focus on the middle class, and support it.
2_ Enhance American industry and bring back American companies located abroad to local production thanks to protection and tax incentives.
3_ Reduce the trade deficit through tariffs on imports and achieve the principle of reciprocal treatment with other countries.
Despite all this, this new tax policy may lead to catastrophic results, including:
1_ Insufficient tariff revenues to cover the proposed tax reductions.
2_ Rising inflation and prices.
3_ Increased public debt due to the gap between revenues and spending.