Trump Plans Income Tax Cuts for Earners Under $200K

President Donald Trump has proposed significantly reducing or even eliminating federal income taxes for Americans earning under $200,000 a year, funding this initiative with revenue generated from new tariffs on foreign goods. He asserts that these tariffs will not only enable tax relief for the middle class but also spur job creation and the construction of new factories, framing it as a major economic boost for the country. Trump has also mentioned the concept of an 'External Revenue Service,' shifting the tax burden from domestic income taxes to tariffs collected from foreign trade. However, the feasibility of these proposals remains uncertain, given ongoing trade negotiations and legislative hurdles in Congress, as well as skepticism among economists and the public. Polling shows that a majority of Americans doubt the effectiveness of the tariff strategy, with concerns that it could lead to higher consumer prices and even a recession. Despite these doubts, Trump maintains that his tariff and tax policies will deliver tangible benefits to ordinary Americans.