Donald Trump has proposed a dramatic shift in the U.S. tax system, suggesting that federal income taxes could be eliminated and replaced with tariffs on imported goods. The plan, unveiled at a Republican conference in Miami, aims to reduce the financial burden on Americans while boosting the nation’s economy.
Trump pointed to the late 19th century as a time when the U.S. thrived without income taxes, relying instead on tariffs to fund government operations. “From 1870 to 1913, the U.S. operated entirely on tariffs—and it was the richest period in our history,” he said. He believes that a similar system could work today, allowing Americans to keep more of their earnings.
To manage this new system, Trump proposed creating the External Revenue Service (ERS), an agency dedicated to handling tariffs and international trade revenue. This, he argued, would shift the financial burden to foreign countries, making the U.S. “very rich again, very quickly.”
However, the plan has its critics. Economists caution that tariffs could lead to higher prices for consumers, as businesses often pass these costs onto shoppers. Additionally, some question whether tariffs alone could generate enough revenue to fund essential government programs.
While the proposal is ambitious, it has sparked a lively debate about the future of America’s tax system. Whether it becomes a reality or not, Trump’s plan has certainly stirred the pot and brought new ideas to the table.
