Former President Trump Proposes Eliminating Federal Income Tax, Replacing with Tariffs

In a recent Joe Rogan Experience episode, Former President Trump shared his bold proposal to eliminate federal income tax and replace it with tariffs on imports. He likened this strategy to the tariff policies of President William McKinley in the 1890s, which he claims provided a substantial revenue stream. Trump’s comments have sparked debate, especially as he currently holds a 65% chance of winning the 2024 election according to Polymarket odds.

Trump’s Federal Income Tax Proposal: A Return to Tariffs

Trump advocates for a shift away from federal income tax, suggesting tariffs could cover government funding. Reflecting on McKinley’s era, Trump argued that tariffs could generate enough revenue to eliminate the need for federal income tax, allowing the U.S. to bolster domestic industry and create dollar demand.

Critics’ Concerns: Critics argue that tariffs could indirectly act as a hidden tax by increasing prices for goods, thereby placing more burden on consumers. Trump, however, counters this by suggesting that tariffs could drive demand for the U.S. dollar and make American exports more competitive globally.

A Radical Idea: Using Bitcoin to Address the National Debt

In another unconventional proposal, Trump suggested using Bitcoin to tackle the $35 trillion national debt. Speaking with Fox News’ Maria Bartiromo, Trump proposed that the U.S. could leverage a Bitcoin strategic reserve, even suggesting “Handing them a little Bitcoin” to creditors as a way to offset debt.

Challenges to a Bitcoin Reserve: According to asset manager Bryan Courchesne, while establishing a Bitcoin reserve is challenging, it’s not impossible. The Department of Justice holds approximately 200,000 BTC seized through law enforcement and could potentially transfer these funds to the U.S. Treasury. However, Courchesne points out that extensive bureaucratic hurdles might impede this process.

Other Candidates on a Bitcoin Reserve

Trump is not alone in his advocacy for a Bitcoin-backed reserve. Earlier in 2024, Robert F. Kennedy Jr. also suggested adopting Bitcoin as a means to support the U.S. dollar, further indicating the growing interest in cryptocurrency’s potential role in government finance.