US Income Tax: Will income tax be abolished in America? US President trump gave big indications.
US President trump is constantly in the news regarding tariffs. Recently, he has given indications of removing income tax.
Trump On Income Tax In US
US President Donald Trump has recently given such a statement in an interview which can bring about a big change in the country's tax system. He has said that if the government gets enough money from tariffs, then income tax can be removed. He said that in the 1800s, America had taken good financial advantage from tariffs, and the country was counted among the richest countries.
In an interview given to Fox Noticias, trump said, "Earlier in our country, there was no income tax from 1870 to 1913. Then the government used to raise all the money from tariffs, and our country was the richest in the world at that time."
Tariff in place of tax
Trump also said that he wants to adopt a tariff-based economic model in America once again. He stressed that this amount could be so high that it could replace income tax. However, he also admitted that Congress' approval would be mandatory to implement this change. Efforts to change the tax system have intensified after the Corona epidemic.
90 days import tax
The heavy tariff announced by trump on april 2 had spread panic in the financial markets. Due to this, he decided to give a partial exemption of 90 days, but at the same time increased the duty on china to 145%.
Income tax status in America
After the 16th amendment of the US Constitution in 1913, congress got the right to impose income tax. Currently, many states of America also collect income tax at their level. However, there are 8 states - Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, and Wyoming, where personal income tax is not collected. Whereas Washington state does not tax wages or salaries, it does tax capital income above $270,000.
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