US President Donald Trump has made a bold promise that’s raising eyebrows. According to a post on Truth Social, he claims that the steep tariffs he’s pushing could reduce, or even completely eliminate, income taxes for many Americans.
📉 A “Bonanza for America”?
Trump took to social media on Sunday to tout the benefits of his trade policies. In a post, he wrote: “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.”
Not stopping there, Trump went on to call it a “BONANZA FOR AMERICA!!!” He also said that jobs were already being created, with new plants and factories springing up across the country. His message? These tariffs aren’t just about trade; they’re about economic boom.
💰 Replacing Income Taxes with Tariffs?
For months, Trump has been vocal about his belief that tariffs could replace income taxes as the US government’s primary source of revenue. If this were to happen, the wealthier Americans might get a financial boost, while the middle and lower classes could feel a heavier tax burden.
However, this isn’t exactly how things have panned out in the real world. Despite the claims of a booming job market, the reality is a little less clear.
🏢 A Mixed Message on Jobs and Trade Deals
Trump’s tariffs have already caused a stir on the global stage. Last week, he confirmed that he would ease the steep 145% tariff on Chinese goods after China retaliated with its own tariffs on US products. However, Trump assured his followers that tariffs wouldn’t go to zero, promising that they would be “substantially reduced, but not zero.”
While Trump claims massive job growth is happening, the Federal Reserve’s Beige Book paints a more cautious picture. American companies have been experiencing increased uncertainty since the tariffs were implemented, leading to mixed signals about their long-term benefits.
🔄 Trade Deals in the Pipeline
In his post, Trump also mentioned that new trade deals were just around the corner. He’s been hinting at making deals with multiple countries soon, but admitted that negotiating with so many would be “physically impossible.” His solution? Setting fixed prices for trade deals. That’s an interesting approach to diplomacy, to say the least.
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