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.
In Finland the bourge is doing exactly this by raising the VAT, creating all sorts of new regressive taxes (like a sweet tax) and disguising it as “taking care of the national debt” which for some reason still is able to fly as an argument for the libs.
They are currently also trying really hard to dismantle the last parts of our very high progressive income taxation which I would argue is the last thing standing behind the remaining relative equality here. A tax cut that only benefits very high earners was just announced, along with further easing on taxes for capital.
Income equality has been quickly eroding here since the early 90s (income inequality rose in Finland faster than in any other OECD country during the late 90s to early 00s) and one key development behind this was a tax reform. Capital income tax was decided to no longer be progressive and this along with austerity measures and capital accumulation is the nail in the coffin for the welfare state. The same reform was done in Sweden and Norway around the same time.