President Donald Trump reportedly suggested a daring plan on Thursday to eliminate income tax and introduce a policy of exclusively using tariffs, as CNBC first revealed.
The proposal was put forward during a private meeting with Republican lawmakers at the Capitol Hill Club in Washington, D.C., where he aimed to promote his vision of Making America Great Again.
According to CNBC, the meeting took place at a Business Roundtable event and included influential business leaders such as Blackstone CEO Steve Schwarzman, JPMorgan Chase CEO Jamie Dimon, Carlyle Group CEO Harvey Schwartz, and AT&T CEO John Stankey.
Citing unnamed sources, the news outlet reported that President Trump recommended doing away with income taxes and adopting an all-tariff policy.
In a Truth Social post, Trump wrote, “Great meeting with Republican Representatives. Lots discussed, all positive, great poll numbers!”
Trump’s strategy is focused on bolstering the U.S. economy by departing from traditional tax methods that he believes hinder economic growth and personal wealth.
He views imposing high import tariffs as a way to create a fair international market and punish countries that have exploited lenient U.S. trade policies.
In 2018, Trump implemented tariffs of up to 25% on various Chinese goods as part of a negotiation tactic to pressure China into addressing concerns such as intellectual property theft and forced technology transfers in a new trade agreement.
“For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump wrote in 2019.
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Even with the imposition of tariffs, the prices of imported goods were not impacted during Trump’s presidency.
During a rally in Las Vegas last week, President Trump unveiled an innovative plan that strikes a chord with the working class: the elimination of all taxes on tips for restaurant, hospitality workers, and other tip recipients.
Trump emphasized economic relief for working-class Americans in his speech, particularly those in service industries who heavily rely on tips.
“This is the first time I’ve said this,” Trump announced, “and for those hotel workers and people that get tips, you’re going to be very happy. When I get back into office, we are going to eliminate taxes on tips. We’re going to do that right away, first thing in office.”
