Trump’s plan is to replace federal income tax with tariffs on imports and use Bitcoin to deal with the national debt. This has sparked discussions about how effective it would be and what impact it might have on the economy.
In a recent interview on the Joe Rogan Experience former President Donald Trump shared a bold plan to change the American tax system. He proposed getting rid of federal income tax and replacing it with tariffs on imported goods. Trump also suggested using Bitcoin to help manage the national debt. These ideas have led to a lot of discussions, especially since Trump is running for President again in the 2024 election.
Donald Trump’s Plans to Replace Federal Income Tax
Trump’s plan to get rid of federal income tax and replace it with import tariffs is inspired by policies from the 1890s. He mentioned former President William McKinley to back up his idea that tariffs on imports could benefit the U.S. government a steady source of money just like it had in the late 1800s. He believes this plan would help the U.S. economy, protect American jobs, and make the dollar stronger. During his conversation with Rogan, he claimed that under McKinley, tariffs created such a financial surplus that public officials didn’t know how to spend the funds.
“We were so rich,” Trump explained. We had so much money that we didn’t know how to spend it, he said. He argued that using tariffs like before could meet America’s financial needs today and might even eliminate the need for federal income tax.
Possible Benefits of Tariffs as a Revenue Source
If implemented successfully tariffs could provide several benefits:
Protection for Domestic Jobs: By making imported goods more expensive, tariffs could encourage people to buy products made in the U.S. This could help support American manufacturing jobs.
Strengthening the Dollar: When more people want to buy American goods, it could make the dollar stronger. This might help balance trade deficits and make the U.S. economy better.
Increased Revenue Without Income Tax: Trump pointed out that tariffs could provide the government with a new way to make money, which could reduce or even remove the need for federal income tax.
Using Bitcoin to Address National Debt
In addition to his tax proposal, Donald Trump floated the idea of using Bitcoin to help manage the U.S. national debt, currently around $35 trillion. He suggested that part of this debt could be “wiped away” by paying creditors with Bitcoin. Trump is not the first to suggest such a bold idea.
In 2024 former Presidential candidate Robert F. Kennedy Jr. also proposed using Bitcoin. He believed it could help stabilize the U.S. dollar. This was before he dropped out of the race.
Potential for a U.S. Bitcoin Reserve
Asset manager Bryan Courchesne shared ideas on how a national Bitcoin reserve could be created. He explained that the U.S. government could build this reserve by transferring about 200,000 Bitcoin, which has been seized during law enforcement actions, to the Treasury. This would create a government-held Bitcoin reserve allowing the U.S. to collect Bitcoin as a valuable asset over time.
Will These Ideas Gain Traction?
Trump’s plan for tax and Bitcoin are very bold but they might encounter a lot of opposition. Switching from federal income tax to tariffs would require significant policy changes, and many experts think that today’s economy is quite different from the one in the 1890s.
Trump’s plan to replace federal income tax with tariffs and use Bitcoin to handle national debt shows his vision for a new economic future. While these ideas could change the usual financial system in the U.S., they also carry many risks. It’s still uncertain whether these proposals could solve the national debt, so be sure to follow CoinMozo on X for the latest updates.
Also Read: Trump’s Election 2024 Win: Will His Tax Plan and Pro-Crypto Policies Fuel Bitcoin
