### Trump Proposes Eliminating Income Tax in Favor of Tariff Revenues

In a bold move, former President Donald Trump has suggested scrapping income taxes and substituting the revenue with tariffs. The proposal came during a three-hour episode of the "Joe Rogan Experience" podcast on Friday night, where Trump criticized companies outsourcing production and threatened substantial tariffs on such businesses. Trump emphasized that tariffs could make the United States wealthy if utilized correctly, even going so far as to say the word tariff is "more beautiful than 'love.'"

When podcast host Joe Rogan questioned the seriousness of Trump's proposal to replace income taxes with tariffs, Trump responded affirmatively, citing historical precedent. He praised William McKinley, the U.S. president from 1897 to 1901, as the "tariff king" and asserted that imposing hefty tariffs would prevent foreign entities from taking American jobs, factories, and families without paying a significant price.

Trump's idea is not entirely new; he hinted at the concept earlier in June. During a recent visit to a Bronx barbershop for a Fox News segment, Trump reiterated his admiration for 19th-century policies that relied heavily on tariffs and lacked income taxes. He claimed that contemporary income taxes are burdensome, causing financial strain on taxpayers.

In addition to extending tax cuts from his presidency, Trump has also hinted at further tax eliminations. His proposals include lifting taxes on tips, overtime pay, Social Security payments, and offering tax exemptions for the military, veterans, and first responders. However, these promises have raised concerns among budget analysts. Groups like the Penn Wharton Budget Model and the Committee for a Responsible Federal Budget caution that Trump's policies could exacerbate the federal deficit more than his potential opponent Kamala Harris's plans would.

As the possibility of a Trump victory in the upcoming November election grows, U.S. bond yields have increased. This trend suggests that the Treasury Department might need to issue more bonds to manage the larger deficits and debt interest payments expected under Trump’s plans.

Many economists have expressed skepticism about funding federal revenue solely through tariffs. Garrett Watson, a senior policy analyst at the Tax Foundation, estimated that Trump's tariffs would bring in about $3.8 trillion over ten years—far short of the $33 trillion generated by individual income taxes. Additionally, economists warn that increased tariffs could lead to higher consumer prices and inflation. Retaliatory tariffs from other countries could also negatively impact U.S. exporters and reduce the effectiveness of Trump's proposed tariff revenue.

Trump’s bold suggestion has injected a new angle into ongoing debates about tax policy and economic strategy, but it remains to be seen whether this unconventional approach will gain traction.