Can Trump Abolish Income Tax and Replace It with Tariffs?

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For quite some time the concept of substituting income tax with tariffs has appeared in political discussions particularly by President Donald Trump because of his business expertise alongside his protectionist positions. The initial attraction of moving away from income tax toward tariffs remains unclear when examined through realistic analysis.

At first glance the proposed change from Trump appears straightforward because he wants to abolish income tax and implement import tariffs. Theoretical implementation of this concept enables the U.S. government to acquire revenue together with safeguarding domestic industries from international market competition. The use of tariffs as a government financial resource has remained essential throughout history. For someone like Trump, whose “America First” agenda leans heavily toward economic nationalism, this seems like a natural fit. This proposal would enable Trump to achieve his goals of improving domestic production while fostering domestic buying preference and making taxation simpler.

Under closer examination of how this idea functions it becomes transparent that the solution lacks the simplicity often attributed to it. Tariffs function as a form of taxation which adversely affects all groups of people since they lack progressiveness. Tariffs impose equal tax rates upon all…