🚨 BIG NEWS — Can the USA completely abolish the income tax?
🇺🇸 Donald J. Trump says: “Very soon, Americans may NO LONGER have to pay income tax.” Instead, he proposes replacing income tax revenues with tariffs on imported goods.
💡 What this could mean
✅ No more taxes withheld from salary — which means more cash on hand right now.
🔄 Transitioning from income-based taxation to trade/import-based taxation.
🌍 A potentially major shift in trade, economy, and dynamics of U.S. global supply chains, if implemented.
⚠️ Why experts — and markets — are skeptical
📉 Tariff revenues account for only a small share of U.S. federal revenues: in 2024-25, individual income taxes brought in trillions, while tariffs accounted for only about 3.7% of total federal revenues.
🔁 To replace income tax revenues, tariffs would need to be so high that it could lead to a decrease in imports — undermining the very revenues they depend on.
💸 Higher tariffs are likely to lead to increased prices for consumers (imported goods will become more expensive). This could reduce benefits for ordinary households.
🌐 Trade tensions — tariffs could provoke retaliatory measures, harming global trade, supply chains, and possibly U.S. exports.
🧠 Why crypto investors are watching the situation
The era of tax-free salaries in the U.S. could increase consumers' purchasing power — potentially boosting demand for all sorts of assets, including cryptocurrency.
However, if tariffs raise inflation (through higher prices on goods), economic instability could spook markets — potentially leading to flows into safe assets like cryptocurrency or other speculative assets.
A shift in fiscal policy could change how investors view import-dependent corporations, trade-dependent sectors, and risks in global supply chains — potentially creating volatility in stock markets, commodity markets, and cryptocurrency.$MDT $BNB $BTC
