Trump says he’ll eliminate income taxes. There’s a problem with that

CNN - Apr 28th, 2025

President Donald Trump has expressed a significant ambition to eliminate income taxes, suggesting that tariffs could replace them as the primary source of government revenue. Speaking before boarding Air Force One after attending Pope Francis' funeral in Rome, Trump indicated that it might take some time, but he envisions a future where tariffs could potentially cut all income taxes. However, achieving this would require tariffs to be considerably higher than current levels. Experts suggest that tariffs would need to more than quadruple to replace the $3 trillion annually raised through income taxes, a move that could have severe economic repercussions, including increased prices and reduced consumer demand.

Trump's proposal also faces practical challenges, such as the potential drop in imports if companies are incentivized to produce domestically, which would decrease tariff revenue. The current high tariffs, such as the 145% on Chinese goods, have already led to decreased trade and, consequently, less revenue. Additionally, while some revenue could be supplemented by corporate taxes, Trump's administration aims to lower these rates, complicating the revenue replacement strategy. While Trump acknowledges that the complete elimination of income taxes won't happen overnight, he plans to begin by reducing taxes for those earning less than $200,000 annually, and suggests that tariffs could also be utilized to pay down national debt.

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Story submitted by Fairstory

RATING

6.4

Moderately Fair

Read with skepticism

The article provides a timely and relevant examination of President Trump's proposal to eliminate income taxes by relying on tariff revenue. It effectively outlines the potential challenges and economic implications of such a plan, contributing to public discourse on tax policy. However, the article could benefit from a more balanced representation of perspectives and a broader range of authoritative sources to enhance its credibility and depth. While the clarity and readability of the article are strong, greater transparency in the methodology and data sources would improve its overall quality. The topic's inherent controversy and potential impact on economic policy make it a compelling subject for readers, but the article could further engage audiences by exploring diverse viewpoints and incorporating interactive elements. Overall, the article provides a solid foundation for discussion but could be strengthened by addressing these areas.

Accuracy

The story presents several factual claims that are largely consistent with available data, such as Trump's ambition to eliminate income taxes through tariff revenue. The claim that tariffs would need to be exceedingly high to replace income taxes is supported by economic analysis, indicating the need for verification. However, the article could benefit from more precise data and expert opinions to strengthen its factual accuracy. For example, it mentions a current effective tariff rate of 22.8% and suggests that tariffs might need to be quadrupled, which aligns with economic estimates. The potential economic impact of such high tariffs is also discussed, but more detailed analysis or expert commentary could enhance credibility.

Balance

The article primarily presents the perspective that replacing income taxes with tariffs is problematic, focusing on economic challenges. While it provides a critical view of Trump's proposal, it lacks a balanced representation of potential benefits or supporting arguments from the administration. Including perspectives from economists or policymakers who support the proposal could offer a more balanced view. The article does mention Trump's goals and statements but does not explore them in depth, which could lead to perceived bias against the feasibility of his plans.

Clarity

The article is generally clear and coherent, with a logical flow of information. It effectively outlines the key points of Trump's proposal and the associated economic challenges. The language is straightforward, making complex economic concepts accessible to a general audience. However, some sections could benefit from additional context or definitions, such as explaining tariff mechanisms or the role of the IRS, to aid reader comprehension. Overall, the article maintains a neutral tone and presents information in an organized manner.

Source quality

The article cites economic experts like Torsten Slok and institutions such as Fitch Ratings, lending some credibility to its analysis. However, it lacks a broader range of authoritative sources, such as government reports or independent economic studies, to substantiate its claims fully. The reliance on a single economist's perspective could limit the depth of the analysis. Additionally, the article could benefit from more direct quotes or interviews with policymakers or trade experts to enhance the reliability of its sources.

Transparency

The article provides a general overview of Trump's proposal and its potential economic implications but lacks detailed explanations of the underlying methodology or data sources used in its analysis. It does not clearly disclose any potential biases or conflicts of interest that might affect the reporting. While it mentions expert opinions, it does not delve into the basis for these opinions or how they were derived. Greater transparency in how conclusions were reached and the inclusion of more detailed data would improve the article's transparency.