Donald Trump's Bold Claim, Says Revenue From Tariffs Could End Income Taxes For Several Americans

Washington DC: US President Donald Trump has made a bold claim that revenue from tariffs could end income taxes for several Americans. The idea of replacing income taxes with tariff revenue is not new, but Trump's proposal has brought it to the forefront of the national conversation. In a recent Truth Social post, Trump claimed that revenue from tariffs would substantially reduce, maybe even completely eliminate, income taxes for many people, particularly those making less than $200,000 a year. However, economists and experts have expressed skepticism about the plan, arguing that it would be mathematically impossible to generate the necessary revenue to offset income taxes.

Trump's proposal has led to intense discussion, with some arguing that tariffs could be a viable means of generating revenue, while others contend that the negative consequences would far outweigh any potential benefits. As the debate rages on, it is essential to examine the facts and figures behind Trump's claim and assess the likelihood of his plan coming to fruition.

As per the experts, the US President's assertion that tariffs would generate enough revenue to eliminate income taxes for many Americans is based on the assumption that the tariffs would bring in a substantial amount of money. According to the Department of Homeland Security, the US has collected $15.86 billion in customs and excise taxes in April, an increase of about $6 billion from March. Trump claims that this revenue would be enough to reduce, if not eliminate, income taxes for many people.

However, economists argue that Donald Trump's claim is overly optimistic. A study by the Council on Foreign Relations found that even at the US' current import rates, it would be mathematically impossible to generate the necessary revenue to offset income taxes. The study estimated that tax revenue for the bottom 90% of Americans is around $576 billion, and it is unlikely that tariffs would generate enough revenue to offset this amount.

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Impact Of Tariffs On Economy

The impact of tariffs on the economy is a complex issue, and there are differing opinions on the matter. Trump's trade adviser, Peter Navarro, estimated that tariffs would bring in about $600 billion a year. However, economists have argued that this number is too high and that the negative dynamic revenue effects of tariffs would outweigh any benefits.

The Yale Budget Lab estimated that the tariffs imposed this year would raise $2.4 trillion from 2026-2035. However, the lab also noted that the tariffs would have $631 billion in negative dynamic revenue effects, which would reduce the overall revenue generated by the tariffs.

Skepticism of Economists

Economists have been vocal in their skepticism about Trump's plan to use tariff revenue to eliminate income taxes. Several argued that the plan was based on flawed assumptions and that the negative consequences of tariffs would far outweigh any potential benefits.

Meanwhile, a poll by The Washington Post, ABC News, and Ipsos found that almost two out of three Americans do not approve of Trump's handling of tariffs. The poll, which surveyed more than 2,400 US adults, found that 64% disapprove of how Trump is handling tariffs on imported goods, with 96% of Democrats and 25% of Republicans disapproving.

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Trump's 100-Day Approval Rating Hit Record Low

Donald Trump's 100-day approval rating has hit a record low, with only 39% of Americans approving of his job performance, according to a poll conducted by ABC News, The Washington Post, and Ipsos. The rating is not only the lowest in the past 80 years but also lower than his previous 42% approval rating in 2017. According to experts, the main reasons behind this low approval rating seem to be widespread dissatisfaction with Trump's economic policies and governance. 

The poll also revealed a partisan divide in opinions about Trump's job performance. While 75% of Republicans approved of Trump's overall performance, with 78% endorsing reductions in government spending and 70% favoring increased tariffs, 93% of Democrats disapproved of Trump's job performance, with 89% opposing government cuts and 90% disapproving of tariffs.

Interestingly, Trump's approval rating among non-college-educated white men, a main demographic for him, stands at 54%, matching his previous low among this group. Around 43% of them believed the economy has deteriorated under his leadership. Overall, Trump's low approval rating reflects concerns about his policies and their impact on the economy, as well as partisan divisions.