On Sunday, U.S. President Donald Trump announced the possibility that, once the tariffs take effect, there could be a reduction or elimination of income taxes for individuals earning less than US$200,000 a year.

“When the tariffs cut in, many people’s income taxes will be substantially reduced, maybe even eliminated entirely. Focus will be on those earning less than $200,000 a year,” the Republican president wrote today on his social media platform, Truth Social.

“Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned,” he added.

“It will be a bonanza for America!!! The External Revenue Service is happening!!!” the U.S. President concluded.

This week, a coalition of twelve states, led by the attorneys general of Oregon and Arizona, filed a lawsuit seeking to block the tariffs imposed by Trump, arguing that the tariffs are “illegal.”

The lawsuit aims to block the imposition of a 145% tariff on most products from China and a 25% tariff on most products from Canada and Mexico, important trading partners of the plaintiff states.

It also challenges the 10% tariffs on most products imported from the rest of the world, as well as the Trump’s plan to raise tariffs on imports from an additional 46 trading partners starting on July 9.

  • Sulv [he/him, undecided]@hexbear.net
    link
    fedilink
    English
    arrow-up
    3
    ·
    edit-2
    3 days ago

    Yes, we pay federal income tax and state income tax. Some states have variable income based rates, some are flat. Iirc there’s some state (North Dakota maybe) that has zero state income tax for lower income people.

    Don’t get me started on how sales tax disproportionately affects lower income people.

    • Acute_Engles [he/him, any]@hexbear.net
      link
      fedilink
      English
      arrow-up
      1
      ·
      3 days ago

      You don’t have to tell me, been working poor my whole life but i would like to get you started because i steal other people’s words for conversations in real life so my positions sound smarter i-love-not-thinking

      • Sulv [he/him, undecided]@hexbear.net
        link
        fedilink
        English
        arrow-up
        1
        ·
        edit-2
        3 days ago

        I’m sure you get the gist then

        For arguments sake let’s say someone making 100k a year and someone making 50k a year both consume the same amount of necessities. Therefore they are paying the same ~10% tax on groceries, gas, clothing, household items, etc. While they both pay the same amount of sales tax, in reality, the tax burden is doubled on the 50k earner. They have half as much money but are paying the same amount of sales tax.

        Personally, I think sales tax should just be abolished, but that’s in a world where that lost tax income is coming from taxes on high earners and the wealthy.