What if the administration wants to completely eliminate income tax and substitute it with VAT, tariff?
The direction seems to be towards that.
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Sure could be. But in Europe even with VAT every country except Monaco and the Vatican have a personal income tax. It’s not like that was a substitute.
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It would take an act of Congress, which seems exceedingly unlikely.
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Why you think they want to adopt European model. Remember most Republican financial guys consider Europe a failure.
Maybe just a shrug. That seems all they’re capable of these days.
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Beat me to it. Act of congress? So what? I’m doing it anyway.
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You could probably do it with budget reconciliation and avoid the filibuster.
intercst
Perhaps. Admitted(ly) that is one area I am not well educated. But, I am not sure there would be support for it from all reps.
A VAT would feel VERY MUCH like inflation and since no one feels the taxes coming out of their paycheck, people would immediately notice it - and think that would be enough of a deterrent for many reps. Remember, many of their supporters don’t do nuance so if it has to be explained, it will lack support.
That has been the administration’s stated intent for some time.
Steve
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The most difficult thing to discern, given the “flamboyance” of Trump/Vance/Musk’s actions (legal and il-) is whether
- they actually think all this is going to turn out great for the economy in time for the next election, and so huzzah huzzah! we will win BIG; or
- they actually think by truly varsity level “moving fast and breaking things” they can destroy this pesky government of the p by the p for the People (nooooo!) rapidly enough to establish control by oligarchs and their supporting wackos before the people can act at the end of 2028; or
- something lunatic evil and stupid i cannot even imagine…
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“3” could be on the menu. Can’t rule it out. “2” is most likely but “1” probably isn’t on their minds. Whether any of this “works” or not, they ain’t leavin’.
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Reduce spending, waste, fraud, regulations, taxes, govt jobs
Increase tariffs, automation, gdp, manufacturing, energy
I suppose you seriously believe this. I am envious of you, I have little hope, or trust the politicians in general and this administration in particular are there to do any good.
I don’t want to abuse you from your believes. Just keep track of the actual performance vs rhetoric. Government employees provide very valuable services and just be careful what you wish for.
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There is the problem. Facts are irrelevant to many voters because they have no clue about the real world.
Remember their most fundamental problem: They believe tariffs are paid by the exporting country/business.
Reduce stupidity, cupidity, fraud, wealth-exceptions, PAC’s, anti-govt mobs
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Reality:
$36 T in debt, $2.5T in deficit and $1T in interest payments. Not sustainable.
Most of you are in fantasy land. Democrats are getting violent attacking Tesla showrooms, cars and supercharging stations.
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Except for inceasing tariffs.
The Captain
The most recent economic data indicate a 2.4% DECLINE in real GDP for the first quarter. GDPNow - Federal Reserve Bank of Atlanta
This is in line with expectations from economic models on the impact of tariffs proposed by the current incumbent incompetents.
The tariffs reduce the short- and long-run level of real GDP; this effect is more pronounced in the first two years after enactment. Real GDP growth is -0.6pp lower in calendar year 2025 and -0.1pp lower in calendar year 2026. After 2026, the level of GDP begins to recover modestly as production and supply chains reoptimize. But in the long-run, US output is still -0.3% lower with limited retaliation and -0.4% with full retaliation. That’s the equivalent of the US economy being permanently smaller by $80-$110 billion annually in 2024 dollars. The Fiscal, Economic, and Distributional Effects of 20% Tariffs on China and 25% Tariffs on Canada and Mexico.
This is exacerbated by the current haphazard imposition of tariffs that appears more impulsive than planned.
Historically, GDP growth is much better under democrat presidents. This is not surprising as democrat presidents frequently get elected after republicans screw things up (see FDR [Great Depression], Clinton [“It’s the economy, stupid”], Obama [Great Recession], Biden [pandemic recession]). I suspect history will repeat itself (President Bashear [trump recession]?). New report finds that the economy performs better under Democratic presidential administrations | Economic Policy Institute
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And we have $36T in debt and rampant inflation. China thinks in 100 year time horizon and US is day by day.
This is now changing. Many will not like as the gravy train stops.