Connect with us

Published

on

<div>Federal taxes to be 'substantially reduced' once tariffs set in: Trump</div>

United States President Donald Trump recently said that federal income taxes would be “substantially reduced” or potentially eliminated once the tariff regime fully sets in.

In an April 27 Truth Social post, Trump added that the focus of the purported tax cuts would be on individuals making less than $200,000 per year.

The US President also said that the “External Revenue Service” — a reference to funding the federal government exclusively through import tariffs instead of the current model of collecting taxes through the Internal Revenue Service (IRS) — is materializing.

Eliminating the federal income tax would likely be a positive catalyst for asset prices, including cryptocurrencies, as the increase in disposable income should partially flow back into productive investments. However, this stimulative effect is not guaranteed.

Taxes, US Government, United States, Donald Trump
Source: Donald Trump

Related: If Trump fired Powell, what would happen to crypto?

Trump’s plan leaves analysts and markets doubting

Trump previously floated the idea of eliminating the federal income tax in an October 2024 appearance on the Joe Rogan Experience, although Trump, who was on the campaign trail at the time, provided scant concrete details on the proposal.

The US President suggested that replacing the federal income tax with revenue from import duties would return the US to a time of prosperity seen during the Gilded Age, in the 19th century, when the US did not have a permanent federal income tax.

Research conducted by accounting automation company Dancing Numbers found that Trump’s proposal could save the average American $134,809 in lifetime tax payments.

Dancing Numbers added that the tax savings could be as much as $325,561 per American if other wage-based income taxes are also eliminated.

On April 2, Trump signed an executive order imposing sweeping tariffs on all US trading partners, which included a 10% baseline tariff on all countries and different “reciprocal” tariff rates on countries with import duties on US goods.

However, since that time, the Trump administration walked back its tariff policies several times, flip-flopping on tariff rates and when the tariff regime would fully take effect.

The Trump administration’s ever-changing rhetoric surrounding trade policies has heightened volatility in the US stock market, caused a rise in US bond yields, and has drawn widespread criticism from financial analysts who say the protectionist trade policies hurt capital markets while achieving little else.

Magazine: Harris’ unrealized gains tax could ‘tank markets’: Nansen’s Alex Svanevik, X Hall of Flame

Continue Reading

Politics

CoinShares secures French MiCA license, cementing EU presence

Published

on

By

CoinShares secures French MiCA license,  cementing EU presence

CoinShares secures French MiCA license,  cementing EU presence

In addition to its presence in the EU, CoinShares has expanded in the US market since entering it in 2023, aiming to compete with major industry peers.

Continue Reading

Politics

South Korean regulator urges asset managers to limit crypto exposure

Published

on

By

South Korean regulator urges asset managers to limit crypto exposure

South Korean regulator urges asset managers to limit crypto exposure

South Korea’s FSS advises fund managers to limit ETF exposure to crypto firms like Coinbase, citing caution as regulatory rules are still evolving.

Continue Reading

Politics

Colorado pastor and wife indicted in $3.4M crypto scam

Published

on

By

Colorado pastor and wife indicted in .4M crypto scam

Colorado pastor and wife indicted in .4M crypto scam

The pastor claimed that “God told” him to shill INDXcoin, which caused financial losses to at least 300 investors.

Continue Reading

Trending