Tariffs for Taxes? How Trump's Plan Could Impact You

As we gear up for the Republican National Convention, it’s a good time to look at one of the major policies Trump has been floating. His idea is to use tariffs to replace the U.S. income tax system. He even went as far as proposing an “all tariff policy” to replace all income tax in the U.S. So, who wouldn’t want 33 and 1/3 percent of their income back in their pockets? Especially when the fruits of our taxes are working against us, as evidenced by the increase in crime, no border protection, crumbling infrastructure and a seemingly never-ending rising inflation rate.

This leads us to that age-old question: What exactly is our bloated government using our money for? Oh, that’s right, our taxes are funding their little money laundering scheme they’ve been running under the guise of funding the Ukraine War. That, and their endless lawfare trials and providing illegals with free medical care, luxury living quarters and pre-loaded debit cards. Remember? Funding for everything to keep the Democrats in power. Maybe Trump’s on to something?


How Do Tariffs Work?

Tariffs are a type of trade barrier imposed by a country on imported goods. They are a tax levied by the government on the value of imported products, including freight and insurance. Tariffs are designed to protect domestic industries and raise revenue for the government. Essentially, an additional cost would be added to imported products, making them more expensive to purchase. So, there must be some give and take, right? Wouldn’t you rather have more money in your pocket and then choose to purchase the item you want? Maybe you’d be more inclined to purchase the U.S.-made item as opposed to the more expensive imported item? It also seems that this would drive more production in the U.S., opening doors to regaining some of the manufacturing capabilities and status we had before so much of it moved to China.

Of course, it’s a bit more complicated, but that is the basis of how tariffs work. While they can provide protection for domestic industries and generate revenue, they can also have negative effects on the economy and consumers.



How Trump’s Tariff Plan Would Work

In addition to the “all tariff policy” mentioned earlier, President Donald Trump told House Republicans that he wants to lower the income tax, which could be offset or paid for by adversarial nations. He also suggested that tariffs could be used to pay for tax cuts, saying that he wants to use tariffs as a negotiating chip in conversations with adversaries.

Currently, income tax makes up a much larger part of federal revenue than tariffs. Business Insider states that according to the Office of Management and Budget, tariffs make up just 2 percent of government receipts, and individual taxes made up close to half of U.S. revenue in 2023. Just think about it…. all those trillions of dollars the government spends on funding proxy wars, illegal immigration,  paying for student loans and all those expensive green energy monsters, like wind turbines, are built on your labor—while our bridges and infrastructure are crumbling around us.

 

What the Critics are Saying

This means Trump’s plan would require some hefty tariffs, which critics are saying would lead to skyrocketing inflation and massive trade wars—especially with China. They are also warning that his plan would hit low and middle-income Americans the hardest since they spend a larger portion of their income on consumer goods. The Biden campaign spins his proposal, saying that it would benefit wealthy donors at the expense of working-class Americans.

Of course, if government spending was actually used to build up our own country instead of sending our tax dollars all over the globe for programs that hurt us, while providing the stepping stones for Congress to build millions of dollars in wealth (how is it that so many in Congress make an annual salary of under $200K and end up multi-millionaires after serving just a short time?). Could the self-interested critics just be worrying about their own gravy train being shut down? Just look what Argentina’s President Javier Milei has accomplished in his first 100 days (remember the guy who campaigned with a chainsaw to illustrate how he would cut spending?):

  • Cut the Cabinet in half to nine Ministries
  • Slashed 50,000 public jobs
  • Shut down state-run news agencies
  • According to VOA News, the government has boasted its first budget surplus in over a decade

Of course, Milei has his critics as well, and Argentina has not yet reached Nirvana status; however, he is keeping his word. There’s always a little pain when you rip off the band aid—which is a far better solution than slowly peeling it back for new infections to make the wound even worse. This is how you actually treat an injury and restore it to health.  

 

Whatever Happened to Checks and Balances?

We’re old enough to remember when our country used checks and balances to ensure that no single branch of the government became too powerful. In a system of checks and balances, each branch has certain powers and responsibilities, and each branch has the ability to limit the actions of the other branches. This is achieved through various mechanisms, such as:

  • Separation of Powers: Each branch has distinct powers and responsibilities, making it difficult for any one branch to dominate the others.
  • Checks: Each branch has the power to limit or restrict the actions of the other branches.
  • Balances: The system is designed to balance the powers of each branch, ensuring that no one branch becomes too powerful.

So, in theory, wouldn’t that mean that any of Trump’s plans (including his tariff plan) would need to be approved by various branches of power? He wouldn’t be able to just come into power and be a dictator for a day, right? So, the critics should understand that Trump wouldn’t be able to use the chainsaw trick like Milei because the checks and balances protect us from that… Or do they?

What we’ve been seeing in the last four years does not reflect true checks and balances. As a matter of fact, it seems like the Executive Branch has been usurping all the power to enforce their program du jour, even going against our Constitution and Supreme Court. The student loan payback is exemplary of this practice. Nancy Pelosi herself said that Biden didn’t have the power to extinguish student loans on a whim—but he did it anyway. We’re not sure why there isn’t more pushback on these “decrees of the day” but we can definitely feel our freedoms are in peril by the leftist tactics in play.

So, maybe all criticism of Trump is coming from a place of fear. Fear of his potential counterattack using their same unscrupulous playbook. Fear of losing power for their global elite handlers. Fear of karma coming back to them if Trump gets in office. Fear of making our government great again, by inverting their understanding that the people work for the government. Fear of always having the advantage—they have become very comfortable as the ruling class. They don’t want to give that up.


Tariffs vs. Taxes

When Trump is back in office, as with checks and balances, the most probable outcome will be a combination of tariffs and taxes. The American citizens deserve to have their taxes cut so that they can flourish—not just barely survive. Young people deserve to go after the “American Dream” and be able to purchase a house for their family. More products should be produced in our great nation. The innovation of our country used to drive advances and prosperity across the world. We need to continue leading through our values of freedom of speech, freedom of religion and freedom to protect ourselves.

By shopping at Mammoth Nation, you can be certain that your hard-earned dollars are going to vendors who share your values. Please spread the word and make sure you vote smart at every election in your area—from school boards to the presidency.