Washington:
US President Donald Trump recently expressed optimism about the ability to generate adequate revenue for tariffs, possibly also the place of income tax. In a conversation with Fox Notices, Trump highlighted the significant financial gain from the tariff, drawing similarities with the late 19th century, when the US imposed tariffs and received considerable amount. “There is a chance that the money is so great that he” can “change income tax, said Trump said, mentioning the period between 1870 and 1913 when tariffs were the primary source of revenue.
During this era, the US experienced unprecedented wealth, in which Trump noted, “and when our nation was relatively richest. We were the richest.” However, Trump admitted that any change in income tax would require the approval of the Congress, as the legislative body oversees the tax policy. Trump aims to use tariff revenue to support one tax bill that will exempt tips and social security between other campaign promises. Emphasizing adequate revenue capacity, he said, “It can change income tax, this kind of money”.
Trump also discussed a historic committee established to manage additional revenue, “and the sole purpose of this committee was how to deal with it, who gave it, what do we do? And then, brilliantly, in 1913, in 1913, they went to the Income Tax System.” He further stated that attempts to revive tariffs in the 1930s were unsuccessful, and the great depression was wrongly convicted on tariff, when in fact, it was before tariff.
Regarding tariff revenue, Trump said, “Arabs and billions of dollars and, hundreds of billions of dollars over a year period.” He also mentioned the important daily revenue generated from tariffs, stating, “Before I was a little less to reduce, because you know, this is an infection. You should be, you should be a little flexibility. But we were earning two billion and three billion dollars a day. We never made money.”
The Trump administration has temporarily stopped the mutual tariffs imposed on nations for 90 days after Trump’s announcement that there will be no break on tariffs and only conversations. Meanwhile, the US has imposed 245% tariffs on China, which reflect the ongoing tariff dispute between the two countries.