0 like 6 dislike
ago by Prodigy (9.1k points)
closed ago by
Trump's huge national sales tax on most goods—by executive order—will replace income tax.

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Trump’s massive national sales taxes on most goods, imposed unilaterally by executive order, will pay for everything so you will pay no income taxes. Amazing!
closed

1 Answer

2 like 0 dislike
ago by Novice (750 points)
selected ago by
 
Best answer
Overall this claim is exaggerated. This claim comes from a Donald Trump social media post where Trump states "many people's Income Taxes will be substantially reduced, maybe even completely eliminated." According to CNN Trump many times has voiced that his tariffs will cut income tax. In order for tariffs to equal income tax they "would have to be  at least 100% on all imported goods". Thus the tariffs will not replace income tax and may or may not cut them in general.
https://www.cnn.com/2025/04/28/business/taxes-trump-tariffs/index.html
Exaggerated/ Misleading
ago by Novice (570 points)
0 0
I agree with your point that the claim is exaggerated, as it is unlikely that sales taxes or tariffs could fully replace income tax. For this to work, the taxes would have to be very high, which does not seem practical. What would the actual economic impact be if tariffs or sales taxes were raised significantly to replace income tax?
ago by Innovator (57.5k points)
0 0
Essentially, the claim insinuates that Americans won't need to pay income taxes. So this is exaggerated? Or false?
ago by Newbie (360 points)
0 0
Even though your answer gave a source, I wouldn't say CNN is a reliable source. If you were able to include another more reliable source, this would've been a good answer. I liked how you were able to include what the article said in your response to back up what you answered.
ago by Novice (710 points)
0 0
This answer included great insight on the origins of where the statement came from!  I also appreciated the quick summary from the CNN article offering details about how much the tariffs would have to be to replace income tax.

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