'Best idea is to replace her': Janet Yellen sparks debate as she slams Donald Trump’s idea to replace income taxes with tariffs

Donald Trump came under fire from Treasury Secretary Janet Yellen when he proposed raising import tariffs to make up for lost revenue
Treasury Secretary Janet Yellen took jibes at Donald Trump’s idea to replace income taxes with tariffs (Getty Images)
Treasury Secretary Janet Yellen took jibes at Donald Trump’s idea to replace income taxes with tariffs (Getty Images)

WASHINGTON, DC: Former President Donald Trump came under fire from Treasury Secretary Janet Yellen when he proposed raising import tariffs to make up for lost revenue by revamping a portion of the US income tax system, as per The Hill.

During a meeting with Republican leaders on Capitol Hill last week, Trump presented his plan. On Sunday, June 16, Yellen spoke on ABC's 'This Week', during which anchor Jonathan Karl questioned her on the viability of Trump's proposal.

Janet Yellen chastizes Donald Trump’s idea to replace income taxes with tariffs

During the interview, Yellen said, "It would require tariffs well over 100 percent. The impact would be to make life unaffordable for working-class Americans and would harm American businesses."

Notably, the levy was hailed by Trump's campaign as a major component of their home manufacturing-focused economic policy.

WASHINGTON, DC - DECEMBER 13:  Federal Reserve Chair Janet Yellen listens during her last news confe
During the interview, Yellen said that It would require tariffs well over 100 percent (Getty Images)

Moreover, experts on both political parties have expressed concerns over Trump's most recent tariff policy plan. The plan would cost Americans around $1,500 annually, according to a study by the left-leaning Center for American Progress in Washington.

Like Yellen, the report claims that American imports and consumers would suffer more from the levy than would international rivals like China.

WASHINGTON, DC - NOVEMBER 04:  Federal Reserve Chair Janet Yellen testifies before the House Finance
Yellen also hailed the Biden administration and its economic initiatives (Getty Images)

The tax on imports, for instance, would result in annual increases of $90 for food, $120 for oil, $220 for automobiles, $70 for clothing, $80 for electronics, and $50 for appliances and furniture.

Moreover, with tariffs making up just 1.7% of the government income for the fiscal year 2024, they are now a minor source of income for the United States.

(Getty Images)
Both Donald Trump (left) and Joe Biden emphasize the importance of homegrown manufacturing to their economic platforms (Getty Images)

As they tour the country in preparation for this fall's election, both President Joe Biden and Donald Trump emphasize the importance of homegrown manufacturing to their economic platforms.

When Karl questioned Yellen during the interview about why Americans are upset about pricing even if inflation has decreased, Yellen also hailed the Biden administration and its economic initiatives.

She said, "It’s something the Biden administration absolutely wants to address."

Internet divides as Yellen chastizes Trump’s idea to replace income taxes with tariffs

People on the internet stayed divided and had mixed reactions as Treasury Secretary Janet Yellen criticized Donald Trump's idea to replace income taxes with tariffs.

A user wrote on X, "Best idea yet is to replace Janet!" while one added, "What does she know? She has a horrible financial advisory track record."



 



 

A person also stated, "Trump's tax plan would cost most families additional taxes in tariffs and make billionaires trillionaires" whereas one mentioned, "Trump has no idea what’s the purpose of Tariff."



 



 

A user stated, "Yellen has lost the little incredibility she had" while one added, "It would drastically raise prices on everything for Americans. You think you are having a hard time now? You're in for a world of pain."



 



 

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.

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