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.
This alone could be good, (though they should only eliminate it on slabs of, say, <$60k), but they will combine it with austerity so that it is net regressive for the poor, the tariff shock doesn’t help either.
Also, doesn’t Congress set the rates and slabs?
It’s net regressive for the poor anyway since it’s just shifting the tax burden to consumption taxes because everything you buy will cost more because of tariffs. Consumption taxes always disproportionately hit the poor.
1000%. If this becomes the hot topic among your coworkers, insist on bringing up the simultaneous cuts to social and welfare programs. Trump doesn’t give a shit about the poor or even non rich