President Donald Trump is promoting tariffs to replace federal income taxes, citing Gilded Age policies. However, experts say this plan is not feasible. Treasury Department data shows that tariffs make up a small percentage of total revenue. Trump’s proposal faces skepticism due to its economic impact and reliance on unreliable revenue sources.

In the last fiscal year, individual income taxes brought in trillions more than tariffs. Trump’s claim of eliminating income taxes with tariff revenue is deemed false. Experts warn of the harmful effects of tariffs on economic growth and lower earners. Trump continues to push this idea, despite experts’ analysis. Tariffs could lead to retaliation from other countries, decreasing revenue and increasing uncertainty in financial stability.

Trump’s proposal to eliminate federal income taxes with tariff revenue faces challenges. The idea lacks feasibility due to the unreliable nature of tariff income and potential risks to economic growth. Tariffs could lead to retaliatory actions from other countries and a decrease in imports, impacting revenue. Experts caution against replacing income taxes with tariffs due to the potential drawbacks and uncertainties.

Read more at Yahoo Finance: Trump says tariffs can eventually replace federal income taxes. Experts disagree