Former President Donald Trump has proposed replacing income tax revenue with revenue from tariffs. This idea has been met with significant criticism from various experts. A 2020 paper by A. Lashkaripour estimates that tariffs could replace only 8.8% of US tax revenues, dropping to 3.2% after inevitable retaliations, which would reduce US real household consumption by 3.5%. Former US Treasury Secretary Lawrence Summers has called it the most inflationary proposal he has seen, predicting it would lead to stagflation and burden the middle class and poor. Summers also warned that it would damage the competitiveness of US exporters and create worldwide economic warfare.
Trump's proposal to replace income tax revenue with revenue from tariffs would be the worst macroeconomic policy proposal in U.S. history. Trump's proposal has the potential to do enormous damage to the competitiveness of every US exporter, to do huge damage to all kinds of… https://t.co/kQrDnXnOOd
Trump's proposal to replace the income tax revenue with revenue from tariffs would be the worst macroeconomic policy proposal in U.S. history. Trump's proposal has the potential to do enormous damage to the competitiveness of every US exporter, to do huge damage to all kinds of… https://t.co/kQrDnXnOOd
Trump’s tax proposal to replace a major amount of income-tax revenue with tariffs is a prescription for the mother of all stagflations. It burdens the middle class and the poor who purchase goods on international markets. It would also create worldwide economic warfare. The…
Trump’s tax proposal to replacing a major amount of income-tax revenue with tariffs is a prescription for the mother of all stagflations. It burdens the middle class and the poor who purchase goods on international markets. It would also create worldwide economic warfare. The…
This US election season has brought forth many bad policy proposals. One of the worst is the idea that America should pursue balanced trade through taxes on US borrowing from foreigners, argues Maurice Obstfeld. https://t.co/ehHGXhcH7F
A few notes on the math behind Trump’s scheme to replace income taxes with tariffs https://t.co/8ngjQB0Key
Former US Treasury Secretary @LHSummers says that a proposal to replace income tax revenue with revenue from tariffs would be the most inflationary proposal he has seen in his lifetime. Watch Wall Street Week in one hour on Bloomberg TV https://t.co/se1cp8TKhm https://t.co/3ZIEBNoARz
Really, Trump’s proposal to replace income taxes with tariffs was…bizarre. He has no clue how business and finance actually works, how our banking system works, how fiscal policy works, how global trade works. https://t.co/EAE18kGwK3
Re Trump's new tariff/tax idea, a 2020 paper from @ALashkaripour estimates tariffs could replace only 8.8% of US tax revenues, & this would drop to just 3.2% after countries inevitably retaliated, in turn reducing US real household consumption by 3.5% https://t.co/gV9IAPStQY https://t.co/oHdcmfwzgU