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The proposal raises questions about its financial viability. Currently, income taxes contribute approximately $2 trillion in annual revenue. In stark contrast, existing tariffs yield only about one-twelfth of this sum. Hence, if income taxes were eliminated, the government would need to reestablish significant tariff revenues while simultaneously slashing expenditures, particularly seen as wasteful by Trump and many in his party.
Experts are divided on the feasibility of this approach. While some argue for a revival of the historical tariff model as a viable alternative to income taxes, others remain skeptical about the ability to replace such a significant revenue stream effectively.