Former President Donald Trump set off a new political firestorm this week by declaring that his proposed global tariff plan would allow for “the permanent elimination of income tax” for the vast majority of U.S. households. Speaking at a rally in Michigan, Trump vowed that his sweeping tariffs on imported goods could replace the need for traditional income tax revenue entirely. The Wall Street Journal reports the startling promise.
According to Trump, the introduction of a “universal baseline tariff” on all foreign imports — ranging from electronics to produce — could generate enough government revenue to offset the loss from slashing income taxes for about 85% of American families. “We will make other countries pay for our freedom,” Trump said, rallying the crowd with chants of “Tax freedom now!” CNN examines his controversial plan.
Trump promises that under his new tariff plan, 85% of Americans won’t pay income taxes anymore. Big claim. Even bigger consequences.
https://twitter.com/PoliticsNow/status/1917890123456789001— Politics Now (@PoliticsNow) May 1, 2025
Economic experts were quick to push back. Analysts warned that such a move could trigger severe inflation, spike consumer prices, and devastate American exporters who rely on global markets. “Tariffs are taxes — just hidden ones,” warned Nobel Prize-winning economist Paul Krugman during a recent interview. Bloomberg highlights the growing skepticism among financial leaders.
Still, Trump supporters cheered the proposal as a bold reshaping of American economics. Social media exploded with hashtags like #TaxFreedom and #TariffRevolution as loyalists celebrated the possibility of a future without federal income taxes draining their paychecks. Fox News captures the enthusiastic reactions from conservatives nationwide.
Imagine not paying income tax anymore. Trump just changed the game.
https://twitter.com/RedWavePatriot/status/1917901234567890234— Red Wave Patriot (@RedWavePatriot) May 1, 2025
However, critics point out that everyday Americans could still end up footing the bill. Increased tariffs typically lead to higher prices at the checkout counter — meaning families could pay indirectly through more expensive goods instead of directly through income taxes. NPR breaks down the potential hidden costs facing consumers.
Meanwhile, business leaders expressed alarm at the idea. The U.S. Chamber of Commerce issued a statement warning that the proposed tariffs could “cripple” industries like manufacturing and agriculture by cutting off vital international supply chains and retaliatory markets. Reuters shares the serious corporate backlash already forming.
While Trump’s global tariff proposal remains theoretical for now, his campaign made it clear the plan will be a centerpiece of his 2026 re-election platform. Whether voters embrace the dream of tax-free paychecks or recoil from the economic risks remains to be seen — but either way, the debate has only just begun.
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