Recently, Trump announced a new plan to implement tariff policies, and he now wants to eliminate income taxes. This will save people money.
According to Yahoo Finance, this tariff proposal would result in the repeal of the federal income tax.
The United States can raise the price of goods made in other countries—especially those with cheap labor and resources or those who engage in unfair trade practices—by imposing tariffs on those goods.
When domestic enterprises that employ Americans and are bound by US labor laws are subject to tariffs, it levels the playing field for them.
Before items from other countries can be imported into the United States, a tax is paid to the federal government.
Yahoo! Finance states that if a foreign producer were to incur more costs, such costs would be passed on to the consumer through a higher retail price.
“In order to make American goods more competitively priced, Trump utilized tariffs to raise the cost of Chinese goods during his presidency.”
If tariff charges were to rise again, the effect would be to raise prices across the board for imported goods.
The American people, on the other hand, would retain a larger portion of their earnings should Trump succeed in doing away with federal income taxes.
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With fewer taxes, people have more money to spend, which is good for the economy.
Rising unemployment, more bankruptcies, and lower purchasing power are the main reasons why the United States is becoming more likely to have a recession.
Is Trump’s proposal to do away with income taxes something you can get behind?