Trump makes the case for replacing income tax with tariffs
In Donald Trump’s bombshell interview on "The Joe Rogan Experience," the president-elect floated the idea of abolishing the income tax as well as raising tariffs.
While Glenn Beck has historically been against heavy tariffs, Trump may have won “The Glenn Beck Program” host over with his explanation.
“I’ve always been against tariffs; however, I might be wrong,” Glenn says. “Donald Trump is making a good case when he’s talking about getting rid of the income tax because tariffs will raise the prices of things, especially if he does it the way he’s talking about doing it.”
However, if Trump lowers the income tax simultaneously, the economy would boom.
“We could make up that deficit and become a very powerful nation again. Tell me I’m wrong,” Glenn challenges economic expert and Heritage Foundation visiting fellow Peter St Onge.
“That’s absolutely correct,” St Onge replies. “The vast majority of economists go after tariffs, they attack Trump over tariffs, and I think they are looking at the trees for the forest here.”
“If you replace a tariff, which is basically a sales tax, but it’s one that focuses on imported goods, if you replace that with either reducing or, in our dream scenario, abolishing the entire income tax, it is absolutely rocket fuel for the economy,” he explains, noting that Trump’s plan is reminiscent of the 1800s.
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There are advantages to sales taxes over income taxes. You are paying taxes in small dosages with each purchase rather than having to come up with thousands of dollars to pay income taxes at the end of the year. The tariffs would be on imported goods which would also make them less competitive with domestic production.
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