On Sunday, U.S. President Donald Trump announced the possibility that, once the tariffs take effect, there could be a reduction or elimination of income taxes for individuals earning less than US$200,000 a year.
“When the tariffs cut in, many people’s income taxes will be substantially reduced, maybe even eliminated entirely. Focus will be on those earning less than $200,000 a year,” the Republican president wrote today on his social media platform, Truth Social.
“Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned,” he added.
“It will be a bonanza for America!!! The External Revenue Service is happening!!!” the U.S. President concluded.
This week, a coalition of twelve states, led by the attorneys general of Oregon and Arizona, filed a lawsuit seeking to block the tariffs imposed by Trump, arguing that the tariffs are “illegal.”
The lawsuit aims to block the imposition of a 145% tariff on most products from China and a 25% tariff on most products from Canada and Mexico, important trading partners of the plaintiff states.
It also challenges the 10% tariffs on most products imported from the rest of the world, as well as the Trump’s plan to raise tariffs on imports from an additional 46 trading partners starting on July 9.
Yeah, I often find my little brain is cluttered with stuff from hearsay or fictional media. Learning!
Just to pile on more info. There are dozens of minor taxes levied at the federal, state, and local (usually municipal) level. In some states with a flat tax rate, these are used to make up for the lost revenue which a progressive tax would have brought in.
You can bet that someone has considered a lemonade stand tax. That’s the level of specificity
Don’t bother trying to understand American taxes. It’s fucking insane.
The government withholds money from your paycheck for taxes. Makes sense, right? Except in most cases, they withhold more than you actually will end up owing the government. The IRS knows ho much money you’re making, and they know how much you owe or are owed. But instead of just sending a check or bill, they make you calculate it yourself every year.
most low income americans end up paying very little in income tax (but only if they get their ducks in a row)