Quote:
Originally Posted by Mr.Coffee
Buddy of mine thinks (total speculation I think) that Trump’s going to announce elimination of US federal income taxes the day after Liberation Day to generate support for the tariffs and entice Canadians to join them. Loss in tax rev offset by tariffs. Would this make sense in any way shape or form?
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No, not even close. The last projection I saw (and this was from Trump's people, not an actual economist) suggested that the tariffs would barely pay for the continuation of Trump's 2017 tax cuts. And that assumes the best case scenario for the US where there are no real negative impacts from the tariffs on economic activity, which would reduce government revenue and make them even less effective as a source of revenue.