Former President Donald Trump has long been an advocate for reducing taxes, and the prospect of might seem like a dream come true for the wealthiest Americans. According to , Trump floated the idea of eliminating income taxes during a private meeting with GOP lawmakers. Although it hasn’t been stated as an official campaign party policy, it’s an interesting proposal.
Instead of paying taxes on income, he suggested an “all-tariff” policy which would see import prices soar. What might appear to be a financial windfall could actually have unintended consequences that hurt the very people it aims to benefit. Here are five ways the elimination of income taxes .
Earning passive income doesn't need to be difficult. One of the most immediate consequences of eliminating income taxes would be the need to find alternative sources of revenue to fund government operations. This could lead to a significant increase in tariffs on imported goods, a move that could disproportionately affect the wealthy.
Wealthy individuals often spend large sums of money on imported from other countries. From designer clothing to luxury cars and high-end electronics, the affluent class has a taste for the finer things in life, many of which are produced abroad. Higher tariffs would increase the cost of these goods, reducing the purchasing power of the wealthy and potentially leading to a decrease in the availability of high-quality imported products.
For instance, if tariffs were to rise by 25% on lux.