The proposal comes after a series of other tax cuts he has put forward Trumpincluding eliminating taxes on auto loan payments and Social Security benefits and tips for workers Restaurants.
But according to ABC, the potential elimination of personal income taxes for all Americans represents an unprecedented, revolutionary plan.
When podcast host Joe Rogan asked Trump last week if he was serious about the new plan, Trump said: “Yes, sure, why not?”
Trump said that the United States will compensate for the absent tax revenues in the future by raising customs tariff rates on countries exporting to America.
Trump added: “We will not let the enemy come in and take our jobs and take our factories and take our workers and our families, unless they pay a big price — and the big price is tariffs.”
The individual income tax currently accounts for approximately $2.5 trillion in revenue brought in by the federal government each year.
It is unclear whether Trump’s proposal would also include eliminating payroll taxes and income taxes Companies.
“Trump’s proposal would represent a very fundamental change from current policy if it comes to fruition,” Mark Goldwyn, senior vice president and senior policy director at the Committee for a Responsible Federal Budget, told ABC.
But he acknowledged that details about how this plan would work are incomplete and were not provided by the Trump team.
Experts told ABC that it would be impossible to compensate for government revenues that would be lost from taxes by increasing tariffs.
