Trump Floats New Income Tax Cut in Bid to Ease Tariffs Bite [View all]

Source: Bloomberg

April 27, 2025 at 11:27 AM EDT
Updated on April 27, 2025 at 6:32 PM EDT


President Donald Trump suggested Sunday that his sweeping tariffs would help him reduce income taxes for people making less than $200,000 a year, as public anxiety rises over his economic agenda.

Trump has previously argued that tariff revenue could replace income taxes, though economists have questioned those claims.

“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year,” he said Sunday on his Truth Social network.

Trump’s tariff stances have roiled markets, led to fears of higher prices for Americans, prompted recession warnings and sparked bouts of concern about the US’s haven status — a fear that Treasury Secretary Scott Bessent questioned in a Sunday interview.

Read more: https://www.bloomberg.com/news/articles/2025-04-27/trump-floats-new-income-tax-cut-in-bid-to-ease-bite-of-tariffs