Donald Trump has proposed eliminating the federal income tax system and replacing it with an "all tariff policy" that would rely solely on tariffs as a revenue source for the government.[1] Here are the key points:

Trump floated this radical idea during a private meeting with Republican lawmakers on Capitol Hill, suggesting that tariffs could be used to offset income tax cuts and potentially abolish the income tax altogether.[1]

However, experts have criticized this proposal, arguing that it would disproportionately burden low and middle-income Americans while benefiting the wealthy.[1] Since tens of millions who don't pay federal income taxes would fall under Trump's tariff plan, it could amount to a significant tax increase for lower and middle-class families.[1]

Trump has long advocated for tariffs as a negotiating tool against trade partners, but replacing the entire income tax system with tariffs would be an unprecedented shift.[1]

While the idea garnered some interest from Republicans on Capitol Hill, Democrats were more skeptical, questioning Trump's sincerity and motives behind the proposal.[2] Some viewed it as an "election-year ploy" aimed at appealing to working-class voters.[2]

Trump's own tax returns, obtained by The New York Times, revealed he paid just $750 in federal income taxes in 2016 and 2017 while president, despite reporting hundreds of millions in income over previous decades.[3] This contrasts with his predecessors like Obama and Bush who routinely paid over $100,000 annually in income taxes while in office.[3]

Overall, Trump's proposal to eliminate the income tax in favor of an "all tariff policy" is seen as a radical departure from the current system, with significant implications for the tax burden across different income groups.[1][2][3]

Sources [1] Trump floats eliminating U.S. income tax and replacing it with tariffs ... https://www.cnbc.com/2024/06/13/trump-all-tariff-policy-to-replace-income-tax.html [2] Trump plan to eliminate tip tax garners Capitol Hill interest - Roll Call https://rollcall.com/2024/06/13/trump-plan-to-eliminate-tip-tax-garners-capitol-hill-interest/ [3] Tax returns of Donald Trump - Wikipedia https://en.wikipedia.org/wiki/Tax_returns_of_Donald_Trump [4] Trump wants another Billionaire Tax Break, while Joe Biden will cut ... https://joebiden.com/cutting-taxes-for-middle-income-americans/ [5] The 2017 Trump Tax Law Was Skewed to the Rich, Expensive, and ... https://www.cbpp.org/research/federal-tax/the-2017-trump-tax-law-was-skewed-to-the-rich-expensive-and-failed-to-deliver