Trump Floats New Income Tax Cut in Bid to Ease Tariffs Bite

[BumRushDaShow]

Source: Bloomberg

April 27, 2025 at 11:27 AM EDT
Updated on April 27, 2025 at 6:32 PM EDT


President Donald Trump suggested Sunday that his sweeping tariffs would help him reduce income taxes for people making less than $200,000 a year, as public anxiety rises over his economic agenda.

Trump has previously argued that tariff revenue could replace income taxes, though economists have questioned those claims.

“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year,” he said Sunday on his Truth Social network.

Trump’s tariff stances have roiled markets, led to fears of higher prices for Americans, prompted recession warnings and sparked bouts of concern about the US’s haven status — a fear that Treasury Secretary Scott Bessent questioned in a Sunday interview.

Read more: https://www.bloomberg.com/news/articles/2025-04-27/trump-floats-new-income-tax-cut-in-bid-to-ease-bite-of-tariffs

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No paywall (gift)

[Irish_Dem]

1. Tariffs will make no money, no one paying income tax, Trump stealing as much as he can.

No one buying or selling much to make sales taxes.

Who is going to fund the US govt?

[Grins]

8. There it is!

U Michigan Econ professor said the same thing last week.

High tariffs = high retail prices = no buyers = no sales = no revenue to government = no tax cut.

[Irish_Dem]

10. I am not an Econ Prof from that school up north, but even I can figure it out.

And I only had a couple of econ undergrad classes.

I would think everyone can figure it out.

Except the Prof is wrong on one point.
No matter how bad the economy is Trump will give tax cuts to the rich.

[CrispyQ]

2. Tax cuts don't matter when you don't have a job.

That was a Bush era bumper sticker. Let's recycle it!

[Silent Type]

3. Doubt he'll get much support for that, though not many Congress members will vocally oppose.

They could, however, easily cut income taxes on everyone making less than $60,000 because that group pays less than 3% of total income taxes. That group is a bit over 50% of population.

https://taxfoundation.org/data/all/federal/latest-federal-income-tax-data-2024/

[Tarzanrock]

4. Economic Insanity!

Another "bright idea" from the very stable genius. No more "income tax." This criminal motherfucker is insane! Let's think this through: no income tax for people earning less than $200,000 and "massive tax cuts" for millionaires and billionaires. I wonder what is going to happen to Wall Street this coming week when brokerage houses and investors and hedge funds reflect on this economic insanity?

[not fooled]

5. The parasites want to replace the income tax with tariffs

It's a longstanding dream of the parasite oligarch class to get rid of the income tax and replace it with a consumption tax. Because they know they can't pass the highly regressive flat tax, they want to enact highly regressive tariffs. Reducing the income tax on lower earners is just another step in destroying the IRS. Any tax cut for lower earners will not cover the costs to them of the tariffs.

I hate these people.

[no_hypocrisy]

6. Swell. Cut the revenue coming into the government when

1. Tariffs won't replace the lost revenue;

2. The Deficit is more than $36 trillion; and

3. The proposed tax cuts won't even touch the Deficit (see #2).

[BumRushDaShow]

7. That's why

he managed to file for bankruptcy 6 times.

[Bengus81]

9. Total BS,just hoping for anything to raise his crap ratings

He promised his MAGA idiots a middle class tax cut in his first term.

[thought crime]

11. Just part of the same old con