Trump Calls for Abolishing Federal Income Tax: "Tax Foreign Nations, Not Our Citizens"

At a dinner for House Republicans on Wednesday, President Donald Trump shared some bold ideas about the U.S. economy. Speaking at his Trump National Doral Miami resort in Florida, Trump hinted that he plans to eliminate federal income taxes “quickly.” He also suggested the U.S. should go back to using tariffs and taxes on imported goods as the main way to raise money for the government.

Trump told the crowd that the time between 1870 and 1913 was the richest period in U.S. history. He argued that this wealth came because the country used tariffs instead of an income tax. “America is going to be very rich again, and it’s going to happen very quickly,” Trump said. "It’s time for the United States to return to the system that made us richer and more powerful than ever before."

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He explained that between 1870 and 1913, the U.S. did not have an income tax. Instead, it raised money by taxing goods brought into the country from other nations (tariffs). Trump pointed out that during this time, the U.S. grew wealthier than ever before. He also mentioned the creation of the U.S. Tariff Commission in 1887.

This commission was set up to figure out what to do with the large amounts of money the government collected through tariffs. Trump recalled how President Theodore Roosevelt used this money to create national parks and fund other major projects.

Trump argues that the country should focus on tariffs, rather than taxing American citizens. “Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens,” he said. He believes that this system would benefit the American people more than the current system of income taxes.

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His comments were met with applause from the Republican audience, who seemed to support his idea of bringing back tariffs and eliminating the federal income tax. Trump’s proposal suggests a major shift in how the U.S. could manage its economy and raise money for government needs.

Hypothetically speaking, if President Trump raises tariffs on foreign goods, other countries might retaliate by imposing their own tariffs on U.S. products, which could trigger a trade war. This would make it harder and more expensive for U.S. businesses to sell goods abroad, as foreign markets could become less accessible or more costly. Some countries might also try to negotiate with the U.S. to reduce the tariffs or shift their supply chains to other trading partners to avoid the impact of the higher U.S. tariffs.

If U.S. goods become more expensive in foreign markets, demand for them could decrease, hurting American businesses that rely on exports. On a global scale, if multiple countries raise tariffs in response, global trade could slow down, making products more expensive and potentially causing economic instability. In short, tariffs might protect certain U.S. industries, but they could also lead to negative effects on both the U.S. economy and global trade.

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