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Diamond_Dog

(36,783 posts)
Mon Apr 28, 2025, 04:56 PM Monday

Trump says he'll eliminate income taxes. There's a problem with that.

But, it makes a great sound bite for the low information voter.

**********

“We’re going to make a lot of money, and we’re going to cut taxes for the people of this country,” Trump said before boarding Air Force One for his return from Pope Francis’ funeral in Rome. “It’ll take a little while before we do that, but we’re going to be cutting taxes, and it’s possible we’ll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax.”

(snip)

To start, tariffs would need to be exceedingly high — significantly higher than the already historic levels at which the Trump administration has set them today.

The federal government raises about $3 trillion a year from income taxes. The United States also happens to import around $3 trillion worth of goods annually. So that means tariffs would have to be at least 100% on all imported goods for the levies to replace income taxes, said Torsten Slok, chief economist at Apollo Global Management, in a note to investors.

The United States’ effective tariff rate now stands at 22.8%, according to Fitch Ratings. So to take the place of income taxes, tariffs would need to be more than four times higher than they are now — and America’s new tariff rate is already by far the highest of any developed country and has threatened to plunge the US and global economies into a recession.

But replacing all that tax revenue is not even as simple as doubling the price of everything that comes into America, Slok notes: As prices rise, demand trails off. That’s why America’s largest companies this earnings season have said that Trump’s trade policies are raising costs and leading consumers to spend less on practically everything — from airline tickets to burritos.

“The challenge is that it is unclear what will happen to sales if all imported products double in price,” Slok said. “Given higher prices result in lower sales, it may require as much as 200% tariffs on all imported goods for the total tariff revenue to replace income taxes.”

In other words: To fully replace income taxes, tariffs may need to be set so high that they quadruple the price of everything that comes into the country from abroad.

More
https://www.cnn.com/2025/04/28/business/taxes-trump-tariffs/index.html

39 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Trump says he'll eliminate income taxes. There's a problem with that. (Original Post) Diamond_Dog Monday OP
The Republiklans have done that but only Jerry2144 Monday #1
I'll say there's a big problem with that! CaliforniaPeggy Monday #2
There is a bigger problem DENVERPOPS Monday #12
5150 j.preston Tuesday #22
5150 ???? Criteria 4 ????? DENVERPOPS Tuesday #24
5150 is a term that someone can report to the police if a person is in danger to themselves or others and needs to kimbutgar Tuesday #32
Hmmmmmmm DENVERPOPS Tuesday #33
Section 5150 of the California Welfare and Institutions Code jmowreader Tuesday #34
In Colorado DENVERPOPS Tuesday #39
I'll go out on a limb here and predict dweller Monday #3
I imagine Congress could do it. But they're more concerned about re-election. Callie1979 Monday #5
Lincoln once was reported as saying: DENVERPOPS Tuesday #25
Everything he & Muskrat have done in the past 100 days has been on the basis of "I dare you to stop me"..., Hekate Tuesday #35
The problem is Trump's a dumbass. nt Callie1979 Monday #4
But there won't BE any tariffs. BamaRefugee Monday #6
Stop using logic and liberal thinking skills! Are you trying to make Dear Leader look bad? tanyev Monday #9
I guess I subconsciously want to be first in line when they load me into that box car to be "re-educated" BamaRefugee Monday #10
It's a f'king Repub REGRESSIVE SALES TAX Dave says Monday #7
It's a bold innovative plan to bankrupt the entire middle and lower income classes... Hekate Tuesday #36
Actually he might do that. Conjuay Monday #8
And since no one will be buying most of the products mdbl Monday #11
If that happens the country craters Javaman Monday #13
One of the biggest problems with that nonsense Silver Gaia Monday #14
And yet, there would still be state taxes sakabatou Monday #15
LOTS of State Taxes. BurnDoubt Monday #17
Couldn't think himself out of a wet paper sack. BurnDoubt Monday #16
This is devastating, to say the least. slightlv Monday #18
Then they will die. Moostache Tuesday #27
I'm tempted to believe he really is that stupid William Seger Monday #19
He has a bunch of sociopaths advising him. Prof. Toru Tanaka Tuesday #26
The trump billionaire boys club would love to quit paying income taxes Snarkoleptic Monday #20
Stupendous! róisín_dubh Tuesday #21
Nuke Please, Rad... Cha Tuesday #23
He sure knows how to bankrupt things C_U_L8R Tuesday #28
Taxes are the price we pay for a civilized society. Oliver Wendell Holmes Jr. Ping Tung Tuesday #29
This also doesn't take into account retalitatory tariffs by other countries. subterranean Tuesday #30
I hear D.Rump doesn't do sequential thinking but Eugene Tuesday #31
Another thing he's not considering jmowreader Tuesday #37
He doesn't know what the fuck he is talking about malaise Tuesday #38

DENVERPOPS

(11,974 posts)
12. There is a bigger problem
Mon Apr 28, 2025, 07:41 PM
Monday

getting people to pay for the products with ludicrous price tags resulting from his Tariff's......

He is completely Delusional. Any MD or Cop could take him into custody, and have him taken in for a 72 hour psychiatric hold after hearing anything he says..............SERIOUSLY

j.preston

(7 posts)
22. 5150
Tue Apr 29, 2025, 12:11 AM
Tuesday

I have the credentials - I'll sign the pink slip. He is an obvious danger to others and he appears to meet criteria 4 as well.

kimbutgar

(24,979 posts)
32. 5150 is a term that someone can report to the police if a person is in danger to themselves or others and needs to
Tue Apr 29, 2025, 01:31 PM
Tuesday

Last edited Tue Apr 29, 2025, 08:28 PM - Edit history (1)

Be taken in by law enforcement for Psychiatric care.

I agree FLOTUS needs to be 5150ed!

DENVERPOPS

(11,974 posts)
33. Hmmmmmmm
Tue Apr 29, 2025, 01:44 PM
Tuesday

never heard that in my decades as an EMTMedic in a large City.......Maybe it is something new since I retired......



First Lady of the United States??????/

jmowreader

(52,214 posts)
34. Section 5150 of the California Welfare and Institutions Code
Tue Apr 29, 2025, 03:45 PM
Tuesday

It means an involuntary psychiatric hold. Every state has a similar law.

DENVERPOPS

(11,974 posts)
39. In Colorado
Tue Apr 29, 2025, 05:14 PM
Tuesday

we just requested a "Mental Health Hold".................Only a Police Officer, or MD could actually do it.......

dweller

(26,503 posts)
3. I'll go out on a limb here and predict
Mon Apr 28, 2025, 05:22 PM
Monday

It’s probably unconstitutional for him to change tax rates and codes and
he’s also clinically insane


✌🏻

Callie1979

(665 posts)
5. I imagine Congress could do it. But they're more concerned about re-election.
Mon Apr 28, 2025, 05:39 PM
Monday

There are a few things we COULD do that might get a majority of support in the public, but they never seem to do those things.

DENVERPOPS

(11,974 posts)
25. Lincoln once was reported as saying:
Tue Apr 29, 2025, 11:41 AM
Tuesday

"A STATESMAN IS INTERESTED IN FUTURE GENERATIONS,......A POLITICIAN ONLY IN THE NEXT ELECTION"

Much truer now, than then.........

Hekate

(97,459 posts)
35. Everything he & Muskrat have done in the past 100 days has been on the basis of "I dare you to stop me"...,
Tue Apr 29, 2025, 03:50 PM
Tuesday

I never in my life could have predicted that would (a) be the strategy for overthrow of the USA, or that (b) it would work.

BamaRefugee

(3,801 posts)
6. But there won't BE any tariffs.
Mon Apr 28, 2025, 06:21 PM
Monday

He has stated over and over again that he’s going to bring back so many jobs and so many factories that we will produce EVERYTHING WE NEED.

So if we’re gonna make every single thing we need, we will import absolutely NOTHING, why would we?

And no imports means no tariffs means once again he’s feeding pablum to the poorly educated who are lapping it up like the chocolate fountain at the Golden Corral.

tanyev

(46,234 posts)
9. Stop using logic and liberal thinking skills! Are you trying to make Dear Leader look bad?
Mon Apr 28, 2025, 07:11 PM
Monday

BamaRefugee

(3,801 posts)
10. I guess I subconsciously want to be first in line when they load me into that box car to be "re-educated"
Mon Apr 28, 2025, 07:29 PM
Monday

Dave says

(5,107 posts)
7. It's a f'king Repub REGRESSIVE SALES TAX
Mon Apr 28, 2025, 06:28 PM
Monday

The low info voter still believes the lies TFG tells about tariffs? The producing nation pays them?

Reminds me of the old George Carlin bit: Think how dumb the average person is; then realize half the nation is dumber than that!

(Not a nice sentiment, it's Carlin's bit, not mine. But given we re-elected TFG, what he says is true. What else can we conclude?)

Hekate

(97,459 posts)
36. It's a bold innovative plan to bankrupt the entire middle and lower income classes...
Tue Apr 29, 2025, 03:54 PM
Tuesday

It is a regressive tax on those who can least afford it.

Remember what trump said way back when: “I love low-information voters! “

Javaman

(63,740 posts)
13. If that happens the country craters
Mon Apr 28, 2025, 07:46 PM
Monday

One of the best quotes I’ve ever heard regarding taxes is “taxes are the entry fee to civilization”

Silver Gaia

(5,065 posts)
14. One of the biggest problems with that nonsense
Mon Apr 28, 2025, 07:47 PM
Monday

is that people who don't make enough to actually pay taxes WILL BE TAXED by the fucking high prices caused by his ridiculous tariffs.

BurnDoubt

(295 posts)
17. LOTS of State Taxes.
Mon Apr 28, 2025, 07:58 PM
Monday

And THEN the hue and cry because most of the Red states are being subsidized by the more productive Blue states to some degree.

slightlv

(5,425 posts)
18. This is devastating, to say the least.
Mon Apr 28, 2025, 08:01 PM
Monday

People are naturally going to hold on to all they can of their money to insure their bills are paid and there's at least some food in the house to eat. There won't be any left for rebuilding, remodeling, replacing anything.. let alone to waste on electronic devices and frivolous "wants." It truly will be a return to the Dark Ages where the meaning of life is just to survive. As that will be the case for 99% of us, throw out Maslow's Hierarchy of Needs. Humankind will have to go threw another massive die-off and a new renaissance in order to start to evolve once again. Until then, I fear it'll be close to a Mad Max dystopia, with these militias and new nazi wannabes tearing up everything and everybody... as well as stealing what they can (like the Russian soldiers die when they first crossed into Ukraine and stole everything that wasn't nailed down).

I don't think we'll get the Magas to understand what their lord and savior has in store for them until they're deep into it, themselves. And by then, so the rest of us will be. There's just no shaking their faith in their faux god.

Moostache

(10,474 posts)
27. Then they will die.
Tue Apr 29, 2025, 11:58 AM
Tuesday

Thieves trying to steal things from the poor and middle class will find out that those pew-pew sticks and bang-bangs that they love are NOT all in the hands of docile or cucked beta-boys. They will also find out fast and hard that their own ranks are swollen with just that - a bunch of tough-talking, non-acting blow-hards that will be right behind you, ALWAYS behind.

This is not a wlak in the park, game over fight... It is a brass knuckles street fight and gang war and geurilla resistance that will make the VC and NVA lookl like pikers and make Al Queda and Isis seems like amatuers.

These "MAGA" fools have already drunk the Kool-Aid and believed Trump would help them...they are currently finding out that he lies and cannot stop himself from lying more. Some of THOSE people will join the fight AGAINST Trump as well. The idea that theres is some easy button that Trump can push and assume command and dominion over everyone without the mother of all blow-backs consuming him is laughably naive.

William Seger

(11,569 posts)
19. I'm tempted to believe he really is that stupid
Mon Apr 28, 2025, 08:03 PM
Monday

... but that just seems to be so stupid that, if I had to bet, my money would on the deliberate, self-serving lies of a psychopath who has no fear whatsoever of ever being held accountable.

Prof. Toru Tanaka

(2,585 posts)
26. He has a bunch of sociopaths advising him.
Tue Apr 29, 2025, 11:52 AM
Tuesday

People like Stephen Miller, Peter Navarro and Russell Vought.

And yes, Trump has no fear now of being held accountable for anything thanks to John Roberts and the other MAGAt shitheads on the Supreme Court.

Snarkoleptic

(6,124 posts)
20. The trump billionaire boys club would love to quit paying income taxes
Mon Apr 28, 2025, 10:21 PM
Monday

and replace the IRS with a regressive sales tax, which is right where they're steering us.

C_U_L8R

(47,232 posts)
28. He sure knows how to bankrupt things
Tue Apr 29, 2025, 12:00 PM
Tuesday

In fact it seems to be the only thing he really knows how to do. And whine. He's very accomplished at that too.

Ping Tung

(2,265 posts)
29. Taxes are the price we pay for a civilized society. Oliver Wendell Holmes Jr.
Tue Apr 29, 2025, 12:32 PM
Tuesday

Well, at least, a partially civilized society. Which Don is eliminating with his grandiose stupidity.

subterranean

(3,601 posts)
30. This also doesn't take into account retalitatory tariffs by other countries.
Tue Apr 29, 2025, 12:47 PM
Tuesday

Even if we were to manufacture everything we need domestically and impose massive tariffs on imports, other countries would certainly respond by slapping heavy tariffs on American products, which would make U.S. manufacturers unable to compete globally. All those new factories would have to serve the U.S. market exclusively. It's an idiotic idea that will never happen.

Eugene

(64,716 posts)
31. I hear D.Rump doesn't do sequential thinking but
Tue Apr 29, 2025, 12:49 PM
Tuesday

anyone with 2 working synapses to rub together should that high taxes are deterrent.

D.Rump lives in a land of make-believe.

jmowreader

(52,214 posts)
37. Another thing he's not considering
Tue Apr 29, 2025, 03:56 PM
Tuesday

If you’re paying 20 percent effective rate right now and 66 percent of your current income goes toward necessities like food, utilities, rent/mortgage, medical and transportation, even if you divert all your remaining income to buying imported goods you do not have enough money available to you to pay tariffs equal to what you’re now paying in taxes.

malaise

(283,597 posts)
38. He doesn't know what the fuck he is talking about
Tue Apr 29, 2025, 03:57 PM
Tuesday

Why do people even quote him?

He’s a cartoon character performing for TV and being used by racists, white supremacists, Christian natuinalists, fascists,women haters, billionaires, bankers, IT folks and then Tom, Dick, Harry and his brother.
Meanwhile he thinks he’s an omnipotent emperor but he’s an impotent fool.

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