look news india
US 47th President Donald Trump is preparing to take a big step once again. It is reported that Trump is considering ending income tax in the country. However, no official order has been issued in this regard yet. Trump believes that tariff (import duty) can be increased by eliminating income tax, so that the US can get revenue from other countries rather than its citizens.
The purpose of increasing disposable income
On Monday, Trump proposed that abolishing income tax would increase disposable income of American citizens (income that survives after tax and other social security charges). He says that this step will help in restoring the economic system that made America previously rich and powerful. Trump reiterated that raising revenue by giving priority to import duty can prove to be more effective.
Appeal to take inspiration from history
Trump said, “America should now return to the economic system that made us the richest country in the world. Between 1870 and 1913, the country was the most prosperous when the US adopted the tariff-based economy. ” He also emphasized that instead of taxing citizens to raise income from foreign nations, citizens should be benefited by taxing foreign goods.
Special emphasis on import duty
Trump believes that after removing income tax, the revenue loss of revenue to the government can be compensated through import duty. In this regard, he said in a statement on 20 January, “We should increase tax and tariffs on foreign products, rather than charging tax from our citizens. This will not only increase revenue, but will also ensure prosperity of American citizens. For this, external revenue service will be set up under a new system. ”
Economic experts concerns
However, some economic experts have raised questions about Trump’s plan. He believes that ending income tax and increasing tariffs can have a negative impact on America’s internal economy. Experts say that this step can also affect international business relations and market stability.
It will be interesting to see how effective this plan of Trump proves in future.