Trump Floats Plan to Eliminate Income Tax

Former President Donald Trump, who implemented tariffs on China during his presidency, is reportedly contemplating the use of tariffs to reduce or replace the income tax, according to recent reports.

Sources in a meeting between Trump and GOP lawmakers told CNBC that Trump introduced the idea of an "all tariff policy."

Trump also views tariffs as a strategic tool against nations unfriendly to the United States, according to another source mentioned by CNBC.

During the meeting, discussions included potential tariff increases, continuing Trump’s 2017 tax cuts, and eliminating taxes on tips, as reported by Bloomberg.

“He does want to look at lowering the income tax, and that could be offset and paid for by some type of tariffs, particularly on adversarial nations,” Republican Rep. Nicole Malliotakis of New York said after the meeting.

Republican Rep. Marjorie Taylor Greene of Georgia stated that Trump is considering tariffs as a means to fill the revenue gap if income taxes are further reduced.

“President Trump says ‘this is an idea, but I’d love to raise tariffs’ and then he said, ‘and maybe even no income taxes on Americans.’ Everyone was clapping in the room,” she said. “I think that’s a fantastic idea.”

Republican Rep. Jodey Arrington of Texas, a proponent of free trade, acknowledged that tariffs could be beneficial.

“Republicans who are free trade realize there has to be a balance,” Arrington said, according to Bloomberg. “Trump’s message on tariffs has been embraced.“

During a rally in Las Vegas on Sunday, Trump expressed his opposition to taxes on tips, which are a significant income source for low-wage service industry workers, The Hill reported.

“For those hotel workers and people that get tips, you’re going to be very happy. Because when I get to office, we are going to not charge taxes on tips,” Trump said.

“We’re not going to do it, and we’re going to do that right away, first thing in office, because it’s been a point of contention for years and years and years. And you do a great job of service, you take care of people and I think it’s going to be something that really is deserved,” he added.

Republican Sen. Mike Rounds of South Dakota noted the idea's potential appeal as the GOP seeks to strengthen ties with low-income Americans, according to Reuters.

“If there was something we could do to really energize that particular segment of the population, that might be a real popular thing to do,” Rounds said.