US Elections 2024: Donald Trump To Abolish Income Tax. Read Here

The presumptive Republican candidate, 71-year-old entrepreneur Donald Trump, has proposed an unprecedented tax plan as part of his presidential campaign. Trump, who has consistently advocated for tax cuts, now vows to abolish the federal income tax if elected. Instead, he suggests compensating for the revenue shortfall by increasing tariffs on imported goods, according to Yahoo Finance.

Trump’s plan also includes a reduction in the corporate tax rate. Currently set at 21%, he promises to lower it to 20% or even 15%. These proposals have sparked debates about their feasibility and potential impact on the U.S. economy.

While Trump has a history of tailoring his economic pitches to different audiences, Yahoo Finance reports that he might pursue both the abolition of the federal income tax and the reduction of the corporate tax rate.

Impact on the US Economy

If Trump follows through on his tax promises, the US could face a significant budget shortfall. Investopedia’s Editor-in-Chief, Caleb Silver, estimates a $2.1 trillion deficit in government revenues. This shortfall could lead to an increased cost of living for average Americans as companies impacted by higher tariffs pass on the costs to consumers.

The proposed changes raise questions about their long-term sustainability and the broader economic implications, including potential increases in debt and shifts in consumer prices. As the campaign progresses, these economic policies will likely remain a focal point of debate.