Trump Proposes Tariffs as Alternative to Income Tax in Recent Interview

In a recent interview with Fox News’ Rachel Campos-Duffy, President Donald Trump expressed that there exists a “real chance” tariffs could serve as a substitute for income tax. This statement, made during the broadcast on Tuesday, suggests a return to historical methods of revenue generation through tariffs.

Trump reminisced about a bygone era, stating, “There is a chance that the money from tariffs could be so great that it would replace. You know, in the old days, about 1870 to 1913, the tariffs were the only form of money. And that’s when our nation was relatively the richest.” His remarks reflect a broader view that tariffs could bolster the U.S. economy by tapping into a more traditional revenue source.

Historical Context of Tariffs in America

During the interview, Trump noted the formation of a committee in the 1880s with an aim to phase out currency. He described their activities regarding financial disposal, highlighting a historical perspective where income tax replaced tariffs in 1913. Trump explained further, “And they loved to blame tariffs for the Great Depression. But the Great Depression came before they put the tariffs on.”

Current Tariff Revenue Estimates

When asked about the revenue generated from tariffs currently, Trump confidently stated, “Billions and billions of dollars and, hundreds of billions of dollars over a period of a year.” He pointed out that at certain times, the nation was making upwards of two to three billion dollars daily through tariffs. This figure, he asserts, demonstrates the significant potential revenue that could arise if tariffs were to become the primary source of federal funding.

Focus on Crime and International Relations

The conversation also pivoted towards Trump’s perspective on crime in America. He expressed openness to the idea of sending violent American criminals to prisons in El Salvador, an approach he believes could enhance safety. Trump praised El Salvador’s President Nayib Bukele for initiatives that rendered the country safer, saying, “He’s made it a very safe place. People go, and they feel very secure and safe.” This statement resonates with Trump’s ongoing discussions regarding crime and security strategies domestically.

Regarding logistics, Trump mentioned, “He’s also built one but also other prisons. Very big ones, and we’re using his system because we’re getting rid of our criminals from out of the United States that were allowed to come in by Biden.” His comments highlight a controversial approach to dealing with crime, suggesting international collaboration could potentially alleviate domestic issues.

Prison Facilities for Homegrown Criminals?

When Campos-Duffy queried whether El Salvador’s prison system could accommodate American criminals, Trump replied affirmatively. He suggested that such facilities could also be used for what he described as “homegrown” offenders. The notion of using foreign prisons for American criminals marks a significant departure from traditional law enforcement policies.

Upcoming Broadcast of the Interview

The full interview is set to air on Fox Noticias at 4 p.m. ET on Tuesday, offering viewers further insights into Trump’s evolving policies and strategies. His remarks hint at a willingness to consider unconventional solutions for some of the nation’s pressing issues.

Changes in Tariff Policies

In a surprising move, Trump announced a 90-day pause on reciprocal, customized tariffs recently imposed on numerous nations. This decision marks a shift from his previous stance, revealing a tactical adjustment in approach to international negotiations. While asserting the pause, the Trump administration simultaneously increased tariffs on Chinese imports to 125%, a move signaling ongoing trade tensions.

Administrators, including Trump himself, are currently engaged in negotiations with various countries to establish beneficial trade deals while addressing persistent trade deficits. Economic officials have warned that tariffs could upset markets and potentially lead to a recession. The trajectory of these negotiations will likely impact both domestic policy and international relationships moving forward.

Fox News’ Emma Colton and David Rutz contributed to this report.