Trump aims to eliminate income tax by end of term
axios.com
axios.com
He does something like that every week.
So if I am right that would mean there may be something gnarly in the pipeline by contrast.
late edit: I don't believe they think that far ahead :)
But now if this were done, the US government would need less or the same domestic production to ensure the coffers are filled. If, by some magic wand, this passes and domestic production can meet all of our supply needs, what then?
“Offsetting the revenue from individual income taxes would require over $2.5 trillion a year in tariff collections, more than 10 times what the government actually took in during the last fiscal year”
Prices would rise, but the money available to the consumer would also increase. So I think it wouldn’t be the kind of inflation we usually see where prices rises but earnings don’t keep up.
Wealthy people don’t pay much income tax anyway, so the effect on asset prices would not be huge probably. The middle class would have more money to spend on housing, which would increase housing prices if middle class spending was dominating housing prices, but with investor housing purchases being such a large component of house purchasing buyer pool it may mostly just shift who is buying houses over to the middle class a bit (due to available money increase going disproportionately to middle class people who actually have their spending power substantially eroded by income tax).
Note that when I say wealthy people I mean independently wealthy, not high W2 earners, they aren’t wealthy IMO if their W2 job still generates most of their buying power.
...seemingly an odd time for Trump to make the statement that income taxes could be eliminated soon due to tariffs.