Trump's tax plan would provide income tax cuts for more than 93 million Americans, but analysts think it won't work

Odaily News Analysis points out that Trump's tax reform ideas could provide full or partial income tax cuts for about 93.2 million Americans, which accounts for a large part of the U.S. electorate. As part of his economic propaganda to voters, Trump has proposed a comprehensive tax reform that includes a series of income tax cuts. So far, Trump has formally proposed to eliminate income taxes on tips, social security benefits and overtime pay. Last week, in an interview with the sports media website OutKick, Trump said he would consider tax cuts for firefighters, police, military personnel and veterans. These exemptions are part of Trump's larger vision of transitioning from an income tax system and replacing it with the revenue that a tough tariff proposal will generate. Trump promises to impose a general tariff of 20% on all imports from all countries, including a specific tariff of 60% on Chinese imports. Tax experts do not believe that tariff revenue can offset the loss of eliminating income taxes. "This scheme does not work," said Garrett Watson, a senior policy analyst at the nonpartisan Tax Foundation, in an interview. He said Trump's tariffs would increase revenue by about $3.8 trillion over the next 10 years, far less than the estimated revenue of about $33 trillion brought by income taxes over the same period. According to the Tax Foundation, tax exemptions for tips, overtime pay and Social Security benefits would reduce federal tax revenues by $2 trillion over the next 10 years. Taking into account Trump's tariff plans and other tax cuts, his overall plan would result in a reduction of federal tax revenues by about $3 trillion between 2025 and 2034. While proposing to weaken the income tax system, Trump also promised to make permanent the 2017 tax cuts that are set to expire in 2025. But even if Trump defeats Harris in the November election, his tax reform plan will not be able to be implemented with a Republican majority in the House of Representatives, where all tax bills are introduced. Republicans currently control the House of Representatives by a narrow margin. (CNBC)