Trump Proposes No Federal Income Taxes for Individuals Earning Under $150,000

BruceNews, MA Ed.

CEO / Contributor

In a bold move to reshape the federal tax system, President Donald Trump has proposed eliminating federal income taxes for individuals earning less than $150,000 annually.

This initiative is part of his broader economic strategy to reduce domestic taxation and shift the revenue burden to external sources, primarily through increased tariffs and the establishment of an External Revenue Service (ERS). Here are some key components of the proposal.

Tax Exemption:

Individuals with annual incomes under $150,000 would be exempt from federal income taxes, significantly increasing disposable income for a substantial portion of the middle class.

External Revenue Service (ERS): A new agency dedicated to collecting foreign-sourced revenue, such as tariffs and duties, would be established. The ERS would aim to reduce reliance on internal taxation by shifting the revenue burden to external sources.

Increased Tariffs:

The proposal includes imposing tariffs on imports from other countries such as Mexico, Canada,and China, with rates ranging from 10% to 60%.These tariffs would go towards compensating for the revenue shortfall resulting from the elimination of income taxes.

Historical Context:

President Trump's vision draws inspiration from the economic practices of the Gilded Age (1870-1913), a period characterized by high tariffs and the absence of an income tax. During this era, the U.S. government primarily relied on tariffs to generate revenue, leading to substantial industrial growth and wealth

Increased Disposable Income:

Eliminating federal income taxes for individuals earning under $150,000 could significantly boost disposable income for middle-class Americans, potentially stimulating consumer

spending and economic growth.

Simplified Tax System:

Removing income taxes could lead to a more straightforward tax system, reducing compliance costs and the administrative burden associated with tax filings.

Feasibility and Implementation:

The establishment of the ERS and the shift to a tariff-based revenue system would require Congressional approval and significant restructuring of the current tax framework. Experts are divided on the practicality of this approach, with some questioning its efficacy and others supporting the shift from income taxes to tariffs. Such a proposal will take a monumental effort to pass through congress.

Conclusion:

President Trump's proposal to eliminate federal income

tax for individuals earning under $150,000 represents

a bold shift in U.S. fiscal policy, harkening back to historical economic models. The potential benefits include increased disposable income and a simplified tax system. President Trump is not afraid to make bold moves in an effort to make America Great Again!

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