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.
-
what are the odds this actually happens?
-
would it be a good thing? a bad thing? something in between?
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.