Internet divided as Thomas Massie reveals Trump’s ‘intriguing’ plan to replace income tax with tariffs

WASHINGTON, DC: Former President Donald Trump purportedly suggested repealing income taxes and substituting them with tariffs as the primary government revenue source, according to GOP Rep Thomas Massie.

The White House hopeful briefly proposed his plan in the event of him winning a second presidential term during his closed-door meeting with Republican lawmakers at Capitol Hill on Thursday, June 13, the first since the January 6, 2021, Capitol riot.

"Most intriguing policy idea from the GOP meeting at the Capitol Hill Club this morning," Massie, the lawmaker from Kentucky, wrote on X (formerly Twitter. "Trump briefly floated the concept of eliminating the income tax and replacing it with tariffs."

Experts argue against Trump's idea to replace income tax with tariffs

Economic experts did not welcome the former president's idea on tariffs, pointing out the plausible faults, including the inability to generate revenue from income taxes and the adverse impact on exporters, according to the New York Post.

Erica York, senior economist and research director at the nonpartisan Tax Foundation, noted on X that "individual income tax raises about $2 trillion annually on a tax base of personal income of roughly $15 trillion," and "customs duties currently raise about $80 billion annually on imports of $3.4 trillion."

"[G]ood luck milking $2 trillion of tax revenue out of $3 trillion of imports," she mocked Trump's proposal in another post.

Kyle Pomerleau, a tax policy senior fellow at the American Enterprise Institute, also argued against the proposal on X, pointing out that the price of imports would increase, but the increase in the value of the US dollar would lead to lower sales and income for exporters.

Free Trade Initiative at the National Taxpayers Union Director Bryan Riley stated that with current US import levels, a tariff rate of 71 per cent would be necessary to match the revenue generated by income tax.

"However, a tariff rate of 71 per cent would dramatically reduce the volume of imports," he asserted. "As a result, the revenue generated would be nowhere close to $2.2 trillion."

In February, Trump confirmed plans to impose tariffs exceeding 60 per cent on Chinese goods and a flat 10 per cent tariff on all US imports, as per CNBC.

Internet debates as Trump purportedly floats to replace income tax with tariffs

A group of social media users criticized the idea, suggesting it would adversely impact poor people. At the same time, another bunch online welcomed the out-of-the-box thinking that could boost the economy.

One user wrote, "That's a terrible idea on Trump's behalf. The massive increase in prices across the board would more than replace the amount of money people pay on the income tax, especially since the income tax is progressive. All it would do is make poor people poorer."

While another remarked, "Now that's thinking outside the box! Eliminating income tax and using tariffs could simplify things and boost American manufacturing. Classic Trump, always shaking things up!"

"The idea of shifting tax burdens in such a drastic manner without comprehensive economic analysis and public debate is reckless. It's essential to prioritize sound fiscal policies that promote fairness and sustainability, rather than hastily proposing changes that could destabilize the economy and harm American households," opined a third user.

A fourth response read, "At least someone is finally having the conversation about eliminating income tax."

Someone else argued, "This is, and I’m not exaggerating, the dumbest idea I’ve ever heard a politician come up with. This would crumble the entire economy, likely worldwide."

Whereas an individual wrote, "Get rid of income tax and you would put a lot of spending power back in the pockets of Americans. Just think how the economy would grow. Hopefully it’s not just campaign rhetoric."

"Instant economic disaster. Increasing tariffs to match the current income tax rates would devastate the economy," read a remark. On the other hand, a user added, "This idea is fantastic, but it's crucial to impose a limit on state income taxes simultaneously. Without this, states could rush to increase their taxes to capture the newly available funds. States are not going to be disciplined enough to see this policy play out."

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.