US income tax: Not more income tax in the US? Here is what President Donald Trump suggests

US President Donald Trump proposed a controversial plan to scrape federal income taxes under a report.

Trump suggested that the United States should rely solely on customs tax revenue, Fox Business reported. This was the model the land followed between 1870 and 1913 before income tax was introduced.

Trump’s plan

The president said the richest period in the history of the United States was the period before the income tax according to the report. Instead of taxing US citizens, he suggested to tax foreign nations through tariffs. Trump claimed that this change could help the United States get richer and more influential.

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Trump’s plan is to create a new “external income service”. It would be tasked with collecting revenue from customs.

Mixed reactions

While economists claim that higher tariffs can damage US companies by raising the cost of imported goods. This can lead to higher prices for consumers and can slow the economy. According to some economists, customs rates are not a reliable long -term solution to raise revenue. Some Trump supporters agree with his idea and claim that the procedure could motivate Americans to work harder and use more, potentially increase the economy, Fox Business reported.ALSO READ: Colorado harnesses for snow -covered commuting as winter storms threaten disorders

Imposing duty rates

Trump’s campaign had made changes to US trade policy, Fox Business reported. This included the introduction of a wide duty of 10% or 20% on imports. He also suggested a significant 60% duty on goods coming from China. In addition, he threatened to introduce a 25% duty on products from Canada and Mexico, both of which are part of the US-Mexico-Canada Agreement (USMCA), which he had negotiated during his first period, and replaced the older NAFTA -agreement. These proposals were part of his broader plan to reshape international trade conditions and press for what he called a more favorable financial situation for the United States.

Faqs

What is Donald Trump’s controversial suggestions?
Donald Trump’s controversial proposal is to remove federal income taxes in the United States.

What do economists think about Trump’s plan?
Economists warn that higher tariffs could increase costs for US companies and consumers, potentially slow down the economy and prove unsustainable as a long -term source of income.