Summary
President Donald Trump proposed that the revenue from tariffs could replace income taxes in the future. Economists argue that this idea is not realistic since tariffs generate much less money than income taxes. Tariffs brought in $195 billion in the 2025 fiscal year, while income taxes brought in nearly $2.7 trillion.
Key Facts
- President Trump suggested that tariffs could eventually replace income taxes.
- Economists disagree, saying it's not possible due to revenue differences.
- Tariffs generated $195 billion in the 2025 fiscal year.
- Income taxes brought in nearly $2.7 trillion in the same period.
- Tariff revenues are much lower than the income tax revenue.
- Experts say tariffs can't cover even 10% of current income tax revenue.
- Investments from tariffs are claimed to be much lower than predicted by the administration.
