Trump Tariff Tax Plan Faces Economic Skepticism

President Donald Trump has proposed reducing or eliminating income taxes for Americans earning under $200,000, suggesting that increased tariff revenues could compensate for the lost tax income. The plan includes extending the 2017 tax cuts, expanding tax breaks, and lowering the corporate tax rate, with the aim of boosting job creation and domestic manufacturing. Trump asserts that tariffs will help fund these tax cuts, but offers limited detail on how all income tax revenue would be replaced. Economists and analysts warn that tariff revenues are insufficient without extremely high rates, which could harm economic growth. Polls indicate most Americans expect tariffs to increase consumer prices, and skepticism about the plan's feasibility remains high. Although customs duty collections have surged, they still fall far short of replacing federal income tax revenue, and the risk of global retaliation could further undermine the fiscal objectives.