source: https://www.zerohedge.com/personal-finance/get-rid-it-trump-suggests-hell-soon-slashend-income-tax
Trump is still signaling that he wants to replace income tax with tariffs.
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what are the odds this actually happens?
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would it be a good thing? a bad thing? something in between?
I doubt it happens but would love to see it. Although someone has already pointed out it would expand globalization. Honestly the income tax was the worst amendment
The only reason I think it will never happen is the state LOVES the idea of automatically taking a cut from you every week. It reminds the peasants who is boss
Honestly, I think it could happen. Income tax only taxes people who make income, of which there are many who don't.
Besides, who's to say someone won't come along after it passes and just revokes it? Maybe even include some more sales taxes if industry comes back to dodge tariffs and you can double or triple your theft!
Exactly
personally, I think the idea is definitely novel. it does nothing to address the rot within DC or the ridiculous amount that we are overspending and losing to money laundering. however it does shift the source of income to be external, rather than internal.
with current income tax, the government is funded based on the prosperity of its people. the more money people make, the more the government is funded.
in a system where tariffs replace income tax, the government is funded based off of foreign trade. the more it's people consume foreign products, the more the government gets funded.
this could arguably further encourage globalization of the US economy, which is the opposite of MAGA. it would also further cement the United States as a consumer economy, and make it even tougher for it to be a producer economy.
as for the odds of it happening, I would say it's slim to none. income tax was a temporary war measure, and we all know how that turned out. the government never expires temporary measures. assuming the tariffs are held up in the supreme court, the more likely scenario is that we have income tax and tariffs going forward.
Fuck. That's a good point and one I didn't consider. Even if it doesn't encourage globalization, it might encourage local governments to put up roadblocks to domestic competition, locking in current globalization.
Why wasn’t that the case before the income tax was implemented?
Oh right, because we also taxed exports back then, which meant all of our production remained here, rather than be sent to the rest of the world to make them stronger.
I don’t understand why it would force globalization
logically, if the US government can only be funded by the purchase of foreign goods, then the government has a financial incentive for the citizens to purchase foreign goods over domestic goods. there is no federal sales tax, and with income tax gone, the government gets nothing from people buying and selling within our borders.
it stands to reason that the government would do everything it can to hinder domestic production and encourage overseas purchases. they have many levers to influence this, including taxation and regulation.
And if it does happen, it's obvious how it will shake out in the end. We've seen something similar play out already:
Long term, manufacturing would move back to the US to avoid tariffs. The government wouldn't cut spending because it never does. They would introduce new taxes to make up the difference. The end result is tariffs and taxes. But hey, if it ends up being the same amount taken from Americans, but on-shores industry in the meantime, it'd still be an improvement.
As it does nothing to benefit Israel, the odds of it happening are zero. Any time the Republican party promises something that will help Americans, you can be absolutely assured that it is just talk to manipulate you into voting for them before they turn around and fuck you over.
Firstly: GET RID OF INCOME TAX, YES, YES, YES.
But main goal needs to be shrinking spending, corruption, and government. Everything else is a bandaid.
Also, the point of tariffs is to disincentivize outsourcing. It's weird to then make the government reliant on companies continuing to outsource to foreigners for their paycheck. And, as another comment mentioned, they'd immediately look for other ways to screw us out of our money.
So, my answer is...good in theory, and in theory I'm in favor...but a bunch of other related issues need to be solved or it's pointless.
Wow, he's still "eyeing" to do what is 100%, definitely not going to happen.
There is basically no chance of this happening. Even if I would like it due to the poisonous nature of income tax.
The Federal Government is never going to voluntarily give up such a lucrative revenue stream. Trump would have to spend all of his dwindling political capital just to get Income tax lowered to a reasonable degree, let alone banned.
That would be exactly what I want. That would be closer to how our government originally funded itself in the first place.
He will never do anything. It’s literally all scripted theater. Stop falling for Hollywood movies. How is this difficult to comprehend? He is owned by the people who own the Federal Reserve. Nothing will ever change economically until many people are gunned down in the streets.
Lead by example.
You have dementia, right?
Nothing to lose, right?
Who am I kidding, you're going to forget this comment in a week anyway.
Thanks for proving me right every waking moment of your life.
While you're sitting there "proven right" in smug superiority, the enemy advances.
MOVE
Thanks for admitting everything I said is true. You have nothing. Kill yourself, jew.
No argument, just copypasta.
YOU demand violence.
YOU do it.
Thanks for admitting you can’t read. Enjoy white genocide.
Hit dogs holler.
Be the change you want to see in the world.
YOU do it.
Probably about the same time CDs go back to 8.99 like tapes were. Any minute now the new technology will be paid for and the prices will go back down.
I think he wants to have a sort of capstone signature achievement. He has been wanting this for a long time. One of the best things his tax bills have done, for instance, is vastly increase the standard deduction. This effectively serves to cut the income tax on the vast majority of people.
I can't help but assume it's very unlikely that it happens though. But if he could even cut it in half, or nullify it for anyone below like 100k income (200k MFJ), that would still be a great step in the right direction. If it happens, I think something like that is the most likely form it takes.
Edit: And while I would love federal income tax to go away, the most evil tax anyone pays is property tax on their houses. If I could choose, I would get rid of that. But I realize that is a local and state tax, so orange man does not have much of a say in it.
Maybe he could actually do what he says he’s going to do, then. Instead of instantly capitulating every single time on every topic like his masters order him to.
I mean, you're not wrong lol. He has only himself to blame if he doesn't get it.
It's bullshit that will never happen.
We need to lower spending. Replacing taxes with other taxes isn't the fix we need. Is it better? Sure, but we need to lower spending.
Yes. Big government is not sustainable. Unless & until spending is cut and deficits turn into surpluses (used to repay debt!) there will come a day of reckoning. That won't be pretty.
Everyone imagines it )the Black Wall Of Debt) be "down the road" and maybe their great-grandchildren will have to deal with it? But in reality we're at a stage where it could hit any day now. The longer it goes on the worse it will get too.
In the short term it would be a massive windfall for the white middle class, who are the people Trump owes the most to, even if he personally prefers Israel. The long term consequences are a lot less rosy, but it WOULD technically be returning America closer to how the founding fathers intended it.
Honestly all of the people talking like they are wiser-than-thou for presuming "it's all scam, be a nihilist" and "nothing will ever get better, only fools think that" seem like their lives would be much better served if they found a nice, tall cliff to leap from.
I'm hearing that this IS going to happen and regardless of the relative impact taxation remains slavery. what will be more interesting is the obliteration of white-collar crime as we begin to come to terms with how much wealth we've been vampirized out of.
Trump is just talking to a shattered base disillusioned with his backtracking on deportations, American workers over foreign ones, being the world's police, Epstein list, etc.
The pattern seems to be to float something awesome in a press conference or rally but then just not execute anything to further that supposed goal. Personally getting a bit tired of it.
Odds it happens? Exceedingly small. There's (literally) a MILLION IRS bureaucrats & pencil pushes whose entire lives are dedicated to screwing people over. They'd sooner die than give up their power. Plus millions of accountants who make bank off it every year too.
Odds of it working? Pretty good! Before WW1 that's how the system worked & the Federal government had a budget surplus (afaik) all the time. Just tariffs & corporate taxes (reduced a bit) could keep a small-government USA running smoothly, I think.