#TrumpTaxCuts

President Donald Trump has doubled down on his proposal to lower or even eliminate federal income tax, claiming that tariffs will replace the current tax system. In a post on Truth Social, Trump suggested that income tax for individuals earning less than $200,000 could be "significantly reduced" or completely wiped out once his tariff policy is fully implemented. This idea comes after he signed an executive order earlier this month establishing a 10% tariff on most imported goods, with countries like China facing tariffs of up to 145%. Trump's plan involves replacing federal income tax with revenue from tariffs, similar to the economic model seen during the Gilded Age when there was no permanent federal income tax. "This will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!" Trump wrote, adding that his policy will also create jobs. He suggested that this system will not only reduce income tax but also benefit the American economy by increasing disposable income, which could potentially encourage investment. However, the plan has faced significant skepticism from economists. A study by the Council on Foreign Relations found that tariff revenues are unlikely to be enough to replace income tax for Americans earning less than $150,000. The study estimates that the tax revenue from this group totals $576 billion, but tariff revenues will fall about $65 billion short of covering that. Even White House trade advisor Peter Navarro's claim that tariffs could bring in $600 billion annually has been questioned by experts like Mark Zandi, chief economist at Moody's, who believes that actual revenue may range between $100 billion and $200 billion.