Total Fed Income taxes collected by Feds in 2024: $2.4 Trillion
Most recent breakdown (2022): Top 1% of earners paid 40.4% of all Fed income taxes. Top 25% of earners pd. 87.2% of all Fed income taxes. Bottom 50% (of those who actually had to pay net Federal income tax) paid 3% of all Fed income taxes.
Trump Admin estimates $300 billion tariff income (= 12% of total Federal income tax receipts) by 12/31/2025.
SO...apply $250 Billion of the tariffs collected to taking income tax payers out of the system (to account for SS no longer taxable to seniors and some prior baseline tariff income)....
Then RAISE the STANDARD DEDUCTION to est $50 k, $100,000 married>>>>removes maybe 70% of all net Federal income tax payers from paying ANY income taxes at all. Top 30% (spit-balling here) of net Federal taxpayers still pay taxes, Bottom 70% of those paying some Federal income tax, net after standard deduction, NO LONGER pay Federal income taxes
But what about the debt? No problem. DOGE finding over $1 trillion per year in bogus SS payouts & bogus Medicaid costs....
Plus a BOOM in consumer activity:
- 70% of net Fed tax payers who no longer pay Fed income tax.
- SS recipients no longer have to pay tax on SS, PLUS......people avoid taking out taxable income in retirement --specifically-- to avoid making more of their SS income taxable. MUCH new economic activity will be generated by people more freely taking $$ from retirement accounts.
We can't get to "No income taxes" directly from here, but we sure as heck CAN reduce it's impact on our economy while juicing economic activity and reducing the costs on upper-middle class taxpayers and below. AND reduce deficits.
Trump is 100% right to be talking about this.
No income tax, only sales tax on non essentials. The more you spend, the more you pay. No loopholes to exploit.
OK. I kind of prefer encouraging economic activity by not taxing it, but perhaps states could replace income taxes revenue with some increased sales taxes.
If you're Santa Claus and I'm sitting on your lap? I'd ask for eliminated real estate taxes--on at least your residence that you own. Either we own it or we don't. Real estate taxes that must be paid to retain ownership of your paid-off home are a total scam and punish the elderly that have lower incomes.
Totally agree, real estate tax is immoral.
They used to tariff the shit out of luxury items. That's how they ensured both the rich and the criminals paid their fair share before 1913.
Tariff caviar and Balenciaga!
I think Trump was under selling at $300B. I think we are going to be close to $1T per year. And I think we will get up to $1T in DOGE savings. Plus the economic expansion will require more money supply. We can literally print a bunch of money with no adverse inflation impacts.
The illegals being deported and work requirements for Americans to get welfare benefits is going to be huge. Money for nothing is the biggest cause of inflation. Count the reduction in the government workforce as part of that equation.
When you put all the pieces together, you get the perfect storm. I called it the Golden Age of Trump, but Trump more accurately calls it the Golden Age of America.
Totally agree re DODGE savings, I just didn't use that... in order to "undersell" and focus on concept.
If we actually can get to $1 trillion in tariff income, then perhaps we could get the standard deduction up the $100k per person/$200k per couple...and we'd be getting back to the 1913 split of tariff income plus income tax from the very elites here.
None of this is original on my part...just trying to understand Trump's linkage of more tariff income with reduction in Federal income tax by increasing the standard deduction.
Now that I can see see it's possible, it's obvious that Trump is working a comprehensive plan for both economic growth AND debt reduction.
Pay 10% Fed tax no matter what your income. No more. No less. Everyone has stake in keeping spending under control.
Completely understand, but USING the tax collection strategies in play NOW...
How do we use the $300 Billion/yr extra tariff income and the DOGE SS and Medicaid/Medicare savings?
Allow more $$ to be retained by consumers to spend, improving their living standards and GOOSING the economy (since our economy is 70-75% consumer-driven) which generates even more tariff income.
Then dedicate FICA and medicare/medicaid receipts, bolstered by cutting off fraud that is IDENTIFIED ALREADY to secure those programs for citizens in the future while cutting costs now. There's our debt control and reduction.
The flat tax thing is a rabbit trail right now. It's an introduction to a WHOLE NEW debate. Instead: Use what we have in our reach to start reducing debt and increasing economic activity instead of running off to a new philosophical debate.
In addition: Everybody uses tariffs. WE are the MOST attractive economy to sell into...biggest markets, etc..We are idiots to not maximize our Treasury "take" on tariff income that is so easily available. Recognize that NOT taking the tariff income available to us is the same as giving financial aid to other countries, just as much as USAID ever was.
I'm fine with reciprocal tariffs
This presumes the IRS will still be in power. (power they have is unconstitutional). The intent here is to return the revenues of 1900 where tariffs fueled the government and the very highest wageearners pay a income tax.
Making us less dependent on income tax revenues will automatically make the IRS require much less power. It will also allow us to reduce the Congressional power to corruptly benefit from income tax rules that special interests pay them for.
I like the basis of this thought. I'll leave it up to Trump and his team to figure out the details. There are other considerations, like you mentioned with DOGE. There is also a large re-homing of businesses coming back here and the taxes they pay that will fill the coffers. And I think Trump will get the Fed rate cuts that he wants which will lead to further economic growth with lower rate mortgages, so making home buying more affordable. And lower interest rates will lead to other business growth. Making the US the center for ai and crypto is part of the new economy too. So many wheels in motion that are beyond me.
In the Future A.I & Quantum computers will act as both the middlemen and financial planners/forecasters. People will be connected En Masse and profit from working together to reach common goals at the most affordable costs. For example if 50 Million homes want Steak once a week for the next year, 50 Million Homes will commit financially to buy those steaks. Then the supply chains will be secured both ways. There is a Market and there is a stream of money to keep the Farmers solvent. The Magic of collective spending will soon be here. Let's say there are 1 million consumers who agree to buy "X" amount of goods from another Nation. Those goods help an entire Village/Cityy because the profits go directly to the people. Now let's agree that this same Nation buy an equal amount of goods from the USA with a similar characteristic, that the goods are made by a Village/City in the USA. Then you WAVE the Tariffs because it profoundly benefits both sides of the equation.
Moon Unit may understand how this bold prediction of the future helps us to control costs and increase economic activity right now, but I do not.
Because I'm so dumb: Let's take the very obvious advantages available to us --right now-- from:
increased tariff income and resultant increased economic activity, especially from consumers.
DOGE-identified SS, Medicare and Medicaid savings from fraud, US AID savings from fraud and corruption (Kickbacks to executive and Congress) and reduce debt now.
The topic post was just to illustrate how/why Trump has linked increased tariff income w/ potential massively-increased standard deductions against income taxes. Fewer income tax payers and more economic activity from those saving on overall income tax liability.
“Every man takes the limits of his own field of vision for the limits of the world.“ — Arthur Schopenhauer.
OK. I'm still capable of picking the fruit that's ripe right now, though!
Sow while the Hearts & Souls are ready for change.
If you & wife make less than $100k, will you have to file a tax form?
Same rules would apply as now...if $100,000 or less taxable income (same reporting as now from financial accounts, banks, custodians, employers, etc) then that income would be not taxable after the standard deduction was implemented. If your taxable income was demonstrably $100k/yr or less, then you wouldn't have to file...as you don't have to file now if you know you don't actually owe any income taxes.
Even if if you're making fun of me, Christopher Walken always gets my upvote.
:) not being made fun of is always better!
Ok, sorry to offend. Deleting the comments.
no, no...you're good...i wasn't really complaining! Walken's delivery befuddled me.