President Donald Trump has signed an executive decree establishing reciprocal prices on business partners and a reference rate of 10% on all imports of all countries.
Reciprocal direct debits will be about half of what business partners are charging for American imports, said Trump. For example, China currently has a price of 67% on American imports, so that the American reciprocal prices on Chinese products will be 34%. Trump has also announced a standard 25% rate on all automotive imports.
Trump told the media that prices will return the country to economic prosperity observed in previous centuries:
“From 1789 to 1913, we were a nation supported by prices. The United States was proportionately the richest that have ever been.
“Then, in 1913, for unknown reasons for humanity, they established income tax so that citizens, rather than foreign countries, begin to pay,” said Trump.
Complete verification of reciprocal prices by country. Source: Cointelegraph
Trump presented the prices through the objective of economic protectionism and hinted at the return to economic policies of the 19th century by using them to replace income tax.
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Trump proposes to eliminate federal income tax and replace it with pricing income
Trump proposed the idea of abolishing the interns of income service (IRS) and of exclusively funding the federal government through commercial prices while being on the campaign track in October 2024.
According to the accounting automation company Dancing Numbers, Trump’s plan could allow each American taxpayer of $ 134,809 to $ 325,561 in taxes throughout their lives.
US President Donald Trump addresses the media on reciprocal trade rates during the April 2 press event. Source: Fox 4 Dallas
The higher beach in the estimate of tax savings will only occur if other taxes based on wages are eliminated at state and municipal levels.
The commercial secretary, Howard Lungick, who took office in February, also expressed his support to replace the IRS with the “External Revenue Service”.
Lutnick said the US government cannot balance a budget, but regularly demanded its citizens each year. Prices will also protect American workers and strengthen the American economy, he said.
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