Maybe after inflation recedes, maybe. but not before.
Tarriffs WILL raise domestic prices and the more “punishing” the tarrifs (which is what tarriffs meant to replace the income tac would be) the morely that the price of tens of thousands goods will go up. The timing of intoducing them now, and particularly at once, would create a big rcession.
I would prefer to replace the “progressive” income tax with a single, universal FLAT income tax rate, that would apply to everyone, and everyone’s income, with no deductions, no exempltions, no exclusions and no credits. Just a flat tax everyone pays. The IRS would need 90% fewer people and people would make economic and financial decisions based on natural financial considerations, not to seek a better “tax result”.
Jubilee and genuine US currency oughta do the trick.
I’m sure there will be a lot of ink spelt on the cost-benefit side of this... as a political issue I’m seeing a winner.
It couldn’t be done over night. It would have to be phased in and combined with massive budget cuts. To make it work, we would probably need to really ramp up our energy exports.
What about small Schedule C businesses? “Income determination” can be an incredible headache, because “expenses” as it now stands are complex beyond belief..
Take a look at the "Fair Tax". It does essentially what you are asking for, and it's all handled at the cash register. No forms at all to file (not even a flat tax post card!)
It even includes a built-in "pre-bate" that serves as a kind of "Universal Basic Income", which should be a it with voters of all types! According to their math, the sales tax will be 23%. But, because its only paid by the end consumer, it balances-out the previous taxes currently embedded in the whole rotten system. And did I mention that there's no paperwork? ;-)
https://fairtax.org/active-legislation/h-r-25-the-fairtax-act-of-2023
Wrong. The initial increase in the costs will be one time. US Employment will go up because domestic supply will be in HIGH demand. Also, a lot of countries that import to the US market will eat the tariff. People can save money, not spend so much on imported cheap crap and pay down their debts. Re industrializing will improve our national security for generations to come.
Agree, a slow down of imports causes a recession -> "over there". They make the crap they can consume it.
Bad idea because that does NOT promote domestic industry, at all.
It sounds great.... for people like myself that actually pay income tax. The problem is there are a lot of folks that already pay nothing because of their low tax bracket and things like the child tax credit.
So you can already hear the dems...it’s a tax break for the rich while the poor will end up paying more in higher costs of goods.
The tax code is so convoluted, (intentionally), that proclaiming something as simple as ‘no more income tax’ is actually not that simple...and let’s face it, we will all pay somehow. Dealing with the debt and taxes is just moving furniture around on the titanic until SPENDING STOPS.
A flat tax might be best but what do you do with tax credits, mortgage deductions, etc.
I’m curious if anyone has run the numbers on what kind of tariffs would be needed to offset all income tax. They would have to be huge.
How about combining the Fair tax with the flat tax: Replace payroll taxes by a 20% national retail sales tax or VAT, then have a 30% flat tax at $500K income……..you’d pay 15% income tax on your first million only…….then it goes to 30% at the top?