Trump floats eliminating U.S. income tax and replacing it with tariffs on imports

Tariffs would put the burden on the consumers.
All these people that complain the rich don't pay their fair share. Hmm. What if people were taxed based on their consumption.

If anybody needs to pay their fair share it is those that are on entitlements.
What would be more fair than to tax people on what they consume?

Taxing people on their income is certainly not fair.
 
GlennwaldSnowdenAssanged said:
Tariffs would put the burden on the consumers.
All these people that complain the rich don't pay their fair share. Hmm. What if people were taxed based on their consumption.

If anybody needs to pay their fair share it is those that are on entitlements.
What would be more fair than to tax people on what they consume?

Taxing people on their income is certainly not fair.
Click to expand...


That still requires taxing people who fund the entitlements, which is wrong. I know it's not todays "reality" but the only solution is to end the entitlements.

http://www.ronpaulforums.com/showth...t-the-State-We-Must-Replace-It-Radio-Rothbard
 
acptulsa said:
Well, the Harris puppeteers blamed greedy corporations as if they have control over the fed printers. And Trump blamed Biden as if he didn't cause more printing than Biden did.

https://www.foxnews.com/video/6355804357112

"All he had to do was leave it alone..." and the eight trillion I borrowed would have caught up with us anyway.

Gaslights all around.
Click to expand...

Thanks for the clarification, I didn't quite understand the reply and took it wrong ;-)
 
Video: How To Prevent the Trump Tax “Reform” From Being a Bait-and-Switch


Mises.org
Ryan McMaken
10/29/2024


For a video version of this article, see here and below.

Donald Trump created some excitement last week when he suggested that he might abolish the income tax and replace it with taxes on imports.

Understandably, Most of the excitement came from the prospect of abolishing the income tax.

Of course, the Trump plan isn’t to simply abolish the income tax, it’s to replace it with another tax. Moreover, the Trump proposal, like most so-called tax reform programs, is designed to be revenue neutral. That is, the federal government doesn’t experience any actual drops in tax revenue, and thus, experiences no actual threats to its power. Also, Americans don’t see any true drop in their tax burden under so-called tax reforms like this.

Much of the excitement rests on misconceptions about income taxes. For example, the proposal only mentions getting rid of what is commonly called “the income tax” by which is almost always just meant the graduated income tax that about 60 percent of Americans pay. Many Americans seemed to think that getting rid of this tax gets rid of the IRS.


https://x.com/ryanmcmaken/status/1851334186688249970



But that’s not true at all. The IRS enforces payroll taxes, the Social Security and Medicare taxes that are taken out of every paycheck. So long as there are payroll taxes, the federal government and the IRS will be monitoring your income and making sure you and your employer pay up.

So, if we’re going to get rid of the IRS, all taxes on income will have to be abolished, not just the so-called income tax.

Anything less than that, and we’ll end up with the worst of both world’s under the Trump tax reform. We’ll get higher taxes on imports, and we won’t even get rid of the IRS.

On top of that, Tax reform packages have huge potential for being a bait-and-switch. Realistically, the only way the Trump reform isn’t a bait-and-switch is if the repeal of the IRS and all income taxes comes first, and then, only after that is all signed into law, then comes the increase in import taxes, also known as tariffs.

On the other hand, it would be absurd for anyone who claims to be opposed to state power to accept a reform that goes in the opposite direction. Imagine, for example, the Trump administration saying, well, we’ll raise tariffs big time now and then we’ll introduce some legislation in a little while to abolish the income tax.

You see how that works and you can guess where that ends. You get the big increase in import taxes, and then maybe later, Trump and his friends get around to lowering income taxes. Maybe.

Unfortunately, it would also be very easy for a Trump administration to do this because the presidency has managed to take control of tariff policy and go around the Congress. Somehow, tariff policy became a matter for administrative law even though Congress is clearly given the power over taxes in the constitution. This is why Senator Rand Paul recently introduced legislation to make it so that the executive branch cannot raise import taxes without Congressional approval.

Ridiculously, many Trump supporters on social media condemned Rand Paul’s effort saying that no, the president should be able to raise taxes unilaterally. If these are the people who represent the rule of law and the constitution, we’re in deep trouble.

In any case, many apparently accept that presidents should be able to raise taxes without any vote in Congress, so we can expect increases in import taxes in a Trump administration no matter what. Will this be followed by the abolition of income taxes? I’m not holding my breath.



https://mises.org/power-market/video-how-prevent-trump-tax-reform-being-bait-and-switch


​


http://www.ronpaulforums.com/showth...Tax-%93Reform%94-From-Being-a-Bait-and-Switch
 
One would think that as domestic goods become less expensive than tariff-burdened foreign goods the consumption of foreign good would decline and the revenue from tariffs would drop accordingly. Where will the needed revenue come from then?
 
Sonny Tufts said:
One would think that as domestic goods become less expensive than tariff-burdened foreign goods the consumption of foreign good would decline and the revenue from tariffs would drop accordingly. Where will the needed revenue come from then?
Click to expand...

Easy. The domestic manufacturer raises their prices to match that of the foreign goods to maximize profit and you resume your previous equilibrium, just with larger numbers.
 
TheCount said:
Easy. The domestic manufacturer raises their prices to match that of the foreign goods to maximize profit and you resume your previous equilibrium, just with larger numbers.
Click to expand...

But if you replace the income tax with tariffs this profit won't be taxed. Moreover, the profit earned by domestic producers won't come close to the total income (business and individual) being taxed now.
 
Sonny Tufts said:
But if you replace the income tax with tariffs this profit won't be taxed. Moreover, the profit earned by domestic producers won't come close to the total income (business and individual) being taxed now.
Click to expand...

Oh, sorry, I wasn't explicit about what I meant.

This is a loop wherein more tariffs are always being demanded. And yes, I know it won't actually yield equivalent tax revenue, I'm just pointing out how stupid the whole thing is.
 
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