In a recent private meeting, former President Donald Trump proposed a radical shift in U.S. economic policy, suggesting the replacement of income tax with an "all tariff policy," according to insiders who spoke with CNBC
Trump's proposition, shared with Republican lawmakers at the Capitol Hill Club in Washington, D.C., indicates a potential escalation of his previously protectionist trade agenda, should he defeat President Joe Biden in the upcoming election.
As reported by CNBC, Trump also discussed the strategic use of tariffs as a bargaining chip against international adversaries. This approach aligns with his first-term foreign policy, which heavily utilized tariffs as a tool for negotiation. However, the Trump campaign has yet to comment on these recent discussions. In a post on Truth Social, Trump vaguely stated that there was "lots discussed, all positive" during the meeting, without delving into specifics.
The former president's suggestion of replacing income tax with tariffs has sparked criticism. "Broadly substituting tariffs for income tax is a sure way to hit hard low and middle income Americans and reward top," warned David Kamin, a professor at the New York University School of Law. Similarly, Catherine Rampell, a columnist for the Washington Post, pointed out that Trump's tariff plan could result in a significant tax increase for the lower and middle-income classes, who currently pay no federal income taxes.
The private meeting marked Trump's first return to Capitol Hill since January 6, 2021. On that day, the then-president encouraged his supporters to march to the U.S. Capitol in protest of his 2020 election loss to Biden. This event led to Trump's subsequent impeachment in the House for inciting the violent mob that disrupted the peaceful transition of presidential power.
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