Trump’s Bold Tax Cut Plan: Will Tariffs Save the Day?

by

The United States President, Mr. Donald Trump, recently informed us (via his favorite medium, Truth Social) that federal income taxes might soon face a dramatic reduction—or, if we’re lucky, total elimination—once the ever-elusive tariff regime has firmly taken root. Yes, because who needs taxes when you’ve got tariffs, right? 🙄

In his April 27 post, Trump clarified that these tax cuts would primarily benefit individuals earning less than $200,000 a year—presumably because those making more are too busy paying for their yachts to care about taxes. 🎩💸

He also took the opportunity to introduce his dazzling concept of the “External Revenue Service”—a stroke of genius in which the federal government would be funded exclusively through import tariffs. No more IRS. It’s just tariffs, baby. You heard it here first: forget the old ways; it’s time for a new, shiny, tariff-based utopia. 😎

Now, as far as the economic ripple effects go, eliminating the federal income tax would almost certainly act as a jolt to asset prices—cryptos included—because who doesn’t want more disposable income to throw around on the next speculative venture? But then again, let’s not get carried away. Economic stimuli have a habit of being a bit… temperamental. 🤔

Trump with money

Trump’s Plan Leaves Analysts and Markets Asking ‘What Now?’

Trump first dangled the idea of eliminating federal income tax during an October 2024 appearance on *The Joe Rogan Experience*. As usual, though, he was more about the idea than the details. Campaign season jitters, perhaps? Not that it stopped him from suggesting that by replacing the tax system with tariffs, the US could return to the golden days of the Gilded Age, when there were no pesky income taxes to get in the way of prosperity (and monopolies). 💼

According to the crack team at Dancing Numbers (sounds like a party), the proposal could save the average American a whopping $134,809 in lifetime taxes. Add in the elimination of other wage-based income taxes, and that figure balloons to $325,561. 🤑 What could go wrong with that? Well, let’s just say… there are a few details to iron out. But we’re all about optimism, right?

On April 2, Trump made good on his executive order to slap sweeping tariffs on all US trading partners. A 10% baseline tariff for everyone, plus special “reciprocal” rates for countries that dare impose tariffs on US goods. Bold, brash, and—let’s face it—extremely Trumpian. 🇺🇸

But, surprise surprise, since then, the Trump administration has wavered on the specifics, flip-flopping on rates and timelines. Nothing says “certainty” quite like uncertainty, right? 🤷‍♂️ The constant changes have caused market volatility, driven up bond yields, and attracted plenty of criticism from financial analysts, who are busy shaking their heads at policies that seem to be doing more harm than good to capital markets. But hey, at least they’ve got something to talk about, right? 😅

Read More

2025-04-27 20:33