Trump wants to replace income taxes with tariffs
U.S. President Donald Trump plans to replace income taxes with tariffs, but what does that mean for the average middle-class American? “Donald Trump announced the External Revenue Service, and his goal is very simple: to abolish the Internal Revenue Service and let all the outsiders pay,” U.S. Commerce Secretary Howard Lutnick told Fox News on Feb. 19. The idea is that once the budget is balanced, taxes will be waived for Americans earning less than $150,000 a year. However, the flaw in this plan is that tariffs are not paid by “outsiders.” Rather, tariffs are a tax placed on imported goods and services. “When the U.S. imposes tariffs on imports, businesses in the United States directly pay import taxes to the U.S. government on their purchases from abroad,” according to the Tax Foundation. During Trump’s first term, “the economic evidence shows American firms and consumers were hardest hit by the Trump tariffs.” At the same time, it would be hard to replace the revenue collected from income taxes with revenue from the planned tariffs. According to a study by the Peterson Institute for International Economics (PIIE), a non-partisan research group, the U.S. imported $3.1 trillion in goods in 2023 while raising about $2 trillion through individual and corporate income taxes. This means it would be nearly impossible to replace income taxes with tariffs, since the tariff rate would have to be “implausibly high,” according to PIIE. The institute determined that even at a “revenue-maximizing tariff rate,” the U.S. could raise only a fraction of what it raises with income taxes. Additionally, Trump’s policy could become a victim of its own success. If the result of the policy is that most manufacturing moves to the U.S., there will be fewer imports to tariff, making the replacement of income taxes even more difficult. The Tax Policy Center speculated there could also be a new consumption tax to help with the revenue shortfall. "Congress isn’t going to vote any time soon to explicitly replace the income tax with a consumption levy. But aggressive efforts to dismantle the IRS combined with a hollowing out of the income tax base could render the existing revenue system unsustainable. And drive lawmakers to replace it with something else," wrote Howard Gleckman a senior fellow at the Tax Policy Center. Here are 3 potential impacts on America’s middle class if tariffs replaced income taxes:
U.S. President Donald Trump plans to replace income taxes with tariffs, but what does that mean for the average middle-class American? “Donald Trump announced the External Revenue Service, and his goal is very simple: to abolish the Internal Revenue Service and let all the outsiders pay,” U.S. Commerce Secretary Howard Lutnick told Fox News on Feb. 19. The idea is that once the budget is balanced, taxes will be waived for Americans earning less than $150,000 a year. However, the flaw in this plan is that tariffs are not paid by “outsiders.” Rather, tariffs are a tax placed on imported goods and services. “When the U.S. imposes tariffs on imports, businesses in the United States directly pay import taxes to the U.S. government on their purchases from abroad,” according to the Tax Foundation. During Trump’s first term, “the economic evidence shows American firms and consumers were hardest hit by the Trump tariffs.” At the same time, it would be hard to replace the revenue collected from income taxes with revenue from the planned tariffs. According to a study by the Peterson Institute for International Economics (PIIE), a non-partisan research group, the U.S. imported $3.1 trillion in goods in 2023 while raising about $2 trillion through individual and corporate income taxes. This means it would be nearly impossible to replace income taxes with tariffs, since the tariff rate would have to be “implausibly high,” according to PIIE. The institute determined that even at a “revenue-maximizing tariff rate,” the U.S. could raise only a fraction of what it raises with income taxes. Additionally, Trump’s policy could become a victim of its own success. If the result of the policy is that most manufacturing moves to the U.S., there will be fewer imports to tariff, making the replacement of income taxes even more difficult. The Tax Policy Center speculated there could also be a new consumption tax to help with the revenue shortfall. "Congress isn’t going to vote any time soon to explicitly replace the income tax with a consumption levy. But aggressive efforts to dismantle the IRS combined with a hollowing out of the income tax base could render the existing revenue system unsustainable. And drive lawmakers to replace it with something else," wrote Howard Gleckman a senior fellow at the Tax Policy Center. Here are 3 potential impacts on America’s middle class if tariffs replaced income taxes:
Joe Rogan blasts Trump tariffs, threats to Canada
Trump’s escalating trade fight with Canada is sparking backlash in an unlikely place: his own fanbase. Joe Rogan, a high-profile Trump voter and supporter, slammed the economic standoff as “stupid.” 'Why are we upset at Canada?” he asked fellow comedian Michael Kosta on a recent episode of his podcast The Joe Rogan Experience, “This is stupid, this over tariffs … We got to become friends with Canada again, this is so ridiculous. I can't believe there is anti-American, anti-Canadian sentiment going on. It's the dumbest f— feud.” And it’s not just tariffs rubbing him the wrong way. The 57-year-old also took a shot at Trump’s wild talk of annexing Canada, quipping, “I don't think they should be our 51st state.” Recent surveys seem to indicate that most Americans and Canadians share Rogan’s sense of frustration with the ongoing economic battle.
Trump’s escalating trade fight with Canada is sparking backlash in an unlikely place: his own fanbase. Joe Rogan, a high-profile Trump voter and supporter, slammed the economic standoff as “stupid.” 'Why are we upset at Canada?” he asked fellow comedian Michael Kosta on a recent episode of his podcast The Joe Rogan Experience, “This is stupid, this over tariffs … We got to become friends with Canada again, this is so ridiculous. I can't believe there is anti-American, anti-Canadian sentiment going on. It's the dumbest f— feud.” And it’s not just tariffs rubbing him the wrong way. The 57-year-old also took a shot at Trump’s wild talk of annexing Canada, quipping, “I don't think they should be our 51st state.” Recent surveys seem to indicate that most Americans and Canadians share Rogan’s sense of frustration with the ongoing economic battle.
Thieves poach 100,000 eggs worth $40,000
Thieves made off with around 100,000 eggs — worth nearly $40,000 — after cracking open a distribution trailer in Greencastle, Pennsylvania, according to local authorities. The eggs were taken from a trailer at Pete & Gerry's Organics on the night of Feb. 1. An investigation has been opened. "We take this matter seriously and are committed to resolving it as quickly as possible," the egg producer said in a statement released to media outlets. The theft has drawn plenty of attention as the nation grapples with sky-high egg prices, which is putting pressure on consumers and business owners alike.
Thieves made off with around 100,000 eggs — worth nearly $40,000 — after cracking open a distribution trailer in Greencastle, Pennsylvania, according to local authorities. The eggs were taken from a trailer at Pete & Gerry's Organics on the night of Feb. 1. An investigation has been opened. "We take this matter seriously and are committed to resolving it as quickly as possible," the egg producer said in a statement released to media outlets. The theft has drawn plenty of attention as the nation grapples with sky-high egg prices, which is putting pressure on consumers and business owners alike.
Mortgage rate trends this week
Thirty-year fixed mortgage rates decreased slightly this week, down from 6.67% last week, to an average of 6.65%. “Recent mortgage rate stability continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications.”
Thirty-year fixed mortgage rates decreased slightly this week, down from 6.67% last week, to an average of 6.65%. “Recent mortgage rate stability continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications.”
Scammers are selling vacant land they don't own
Your dream plot of land may be nothing more than a scam. Lisa Shaw has been selling properties in suburban New Jersey for more than two decades. When she was contacted by a Canadian citizen living in England to get help selling his Randolph, NJ plot of land, she didn't immediately suspect something fishy was going on. She told ABC News the property owner claimed his wife was ill and he needed the money to pay for her care. So Shaw did what she usually did. She asked for documentation from the seller, and he sent over copies of driver's licenses. She then proceeded to look for a buyer. What she didn't know at the time was that the identification cards were fake and she would ultimately end up falling victim to a real estate scam — one tied to an alleged international crime web that authorities say involves fake documents ranging from Canada to Vietnam. The FBI reported a 500% increase in vacant land fraud over four years, according to the ABC News report from September. Real estate scams are sweeping the Northeast, FBI Senior Agent Christopher Peavey recently told CBS13. The news station reported on another case of scamsters pretending to be landowners and using fake drivers licenses in Maine, where over 260 people have lost a combined $6 million to real estate scams since 2019, per FBI data. If your land is fraudulently sold like this, you have to file a civil lawsuit to reclaim what’s yours. “... because you’re taking a property that someone lawfully owns, most of the time they’re going to get it back. It’s the headache, the hassle and this third-party victim who thinks they’ve purchased it, so there is a lot of loss that can occur,” said Peavey. In December, Atlanta News First Investigates also discovered sham sellers near Barnesville, a rural county south of Atlanta.
Your dream plot of land may be nothing more than a scam. Lisa Shaw has been selling properties in suburban New Jersey for more than two decades. When she was contacted by a Canadian citizen living in England to get help selling his Randolph, NJ plot of land, she didn't immediately suspect something fishy was going on. She told ABC News the property owner claimed his wife was ill and he needed the money to pay for her care. So Shaw did what she usually did. She asked for documentation from the seller, and he sent over copies of driver's licenses. She then proceeded to look for a buyer. What she didn't know at the time was that the identification cards were fake and she would ultimately end up falling victim to a real estate scam — one tied to an alleged international crime web that authorities say involves fake documents ranging from Canada to Vietnam. The FBI reported a 500% increase in vacant land fraud over four years, according to the ABC News report from September. Real estate scams are sweeping the Northeast, FBI Senior Agent Christopher Peavey recently told CBS13. The news station reported on another case of scamsters pretending to be landowners and using fake drivers licenses in Maine, where over 260 people have lost a combined $6 million to real estate scams since 2019, per FBI data. If your land is fraudulently sold like this, you have to file a civil lawsuit to reclaim what’s yours. “... because you’re taking a property that someone lawfully owns, most of the time they’re going to get it back. It’s the headache, the hassle and this third-party victim who thinks they’ve purchased it, so there is a lot of loss that can occur,” said Peavey. In December, Atlanta News First Investigates also discovered sham sellers near Barnesville, a rural county south of Atlanta.
Ramsey on how Trump's tariffs will hit Americans
As global tensions rise and billion-dollar trade battles make headlines, Brianna from Washington, D.C., had a straightforward question for hosts of The Ramsey Show in a clip posted Feb. 24: "Can you explain how President Trump’s new executive order on tariffs will affect me on a personal level?” On March 4, the Trump administration introduced 25% tariffs on goods imported from Mexico and Canada — some of which have since been paused until April 2 — and increased tariffs to 20% on products from China. All three countries are the largest trading partners of the U.S., leaving many ordinary families wondering what these new rules mean for their household budget. Dave Ramsey and co-host Ken Coleman set clear expectations on tariffs: higher costs for everyone.
As global tensions rise and billion-dollar trade battles make headlines, Brianna from Washington, D.C., had a straightforward question for hosts of The Ramsey Show in a clip posted Feb. 24: "Can you explain how President Trump’s new executive order on tariffs will affect me on a personal level?” On March 4, the Trump administration introduced 25% tariffs on goods imported from Mexico and Canada — some of which have since been paused until April 2 — and increased tariffs to 20% on products from China. All three countries are the largest trading partners of the U.S., leaving many ordinary families wondering what these new rules mean for their household budget. Dave Ramsey and co-host Ken Coleman set clear expectations on tariffs: higher costs for everyone.
Man loses $4K in appliance service scam
In November, just before Thanksgiving, Ben Phillips called Box Appliance, a San Francisco Bay Area appliance repair company he'd used before, to fix a leak in his 22-year-old refrigerator. But this time around, after several visits and a $4,000 bill, the technician not only upsold him to replace the compressor, but they also didn't actually fix the leak. That's when Phillips noticed there was not one but two Box Appliances online. "I go, I've been taken here," he told ABC 7 News. "I can't believe I fell for it." Phillips was later told by a real Box Appliance technician that the refrigerator couldn't be repaired and, worse, that they wouldn't have even taken the job. "That would have saved me," Phillips, whose temporary solution became a shower pan and paper towels, had responded.
In November, just before Thanksgiving, Ben Phillips called Box Appliance, a San Francisco Bay Area appliance repair company he'd used before, to fix a leak in his 22-year-old refrigerator. But this time around, after several visits and a $4,000 bill, the technician not only upsold him to replace the compressor, but they also didn't actually fix the leak. That's when Phillips noticed there was not one but two Box Appliances online. "I go, I've been taken here," he told ABC 7 News. "I can't believe I fell for it." Phillips was later told by a real Box Appliance technician that the refrigerator couldn't be repaired and, worse, that they wouldn't have even taken the job. "That would have saved me," Phillips, whose temporary solution became a shower pan and paper towels, had responded.
How to avoid costly gold bar scams
A Portland coin dealer is speaking out after one of his customers was nearly scammed out of $170,000 in a gold bar scam, reports KGW8 News. Michael Kakoullis, owner of Portland Precious Metals and Coin, said the whole thing started when an elderly man called his store asking to purchase $150,000 in gold bars. The next day, the man increased his request to $170,000. "He asked, how soon can he have it? Can he just pick it up right away? And he wanted to wire the money. And a little bit of a sense of urgency in his voice," Kakoullis told KGW8 News. He ended up locking the customer in for 57 one-ounce bars, and the customer planned to visit the bank to wire the money. A few days later, the elderly man and his banker called Kakoullis to tell him the order was cancelled — and that he was a victim of a scam. However, he still suffered a financial loss since he had a locked price and was on the hook for $4,000 in market price differences.
A Portland coin dealer is speaking out after one of his customers was nearly scammed out of $170,000 in a gold bar scam, reports KGW8 News. Michael Kakoullis, owner of Portland Precious Metals and Coin, said the whole thing started when an elderly man called his store asking to purchase $150,000 in gold bars. The next day, the man increased his request to $170,000. "He asked, how soon can he have it? Can he just pick it up right away? And he wanted to wire the money. And a little bit of a sense of urgency in his voice," Kakoullis told KGW8 News. He ended up locking the customer in for 57 one-ounce bars, and the customer planned to visit the bank to wire the money. A few days later, the elderly man and his banker called Kakoullis to tell him the order was cancelled — and that he was a victim of a scam. However, he still suffered a financial loss since he had a locked price and was on the hook for $4,000 in market price differences.
Oakland's $1.7M overtime overpayment scandal
Unauthorized overtime payments cost the City of Oakland nearly $1.7 million over a period of several years, the city's auditor reported. Meanwhile, the California city faces an estimated budget shortfall of $129 million this year, according to local reports. An investigation was kicked off following a whistleblower complaint in July 2023. It was found, between January 2018 and May 2024, the city overpaid 526 employees across two departments due to an incorrect formula in the payroll system. "This issue of excessive overtime pay warrants the city's immediate attention because taxpayers have essentially been incurring significant costs that were never approved," City Auditor Michael Houston said in a news release Feb. 20. Here's what the situation means for taxpayers.
Unauthorized overtime payments cost the City of Oakland nearly $1.7 million over a period of several years, the city's auditor reported. Meanwhile, the California city faces an estimated budget shortfall of $129 million this year, according to local reports. An investigation was kicked off following a whistleblower complaint in July 2023. It was found, between January 2018 and May 2024, the city overpaid 526 employees across two departments due to an incorrect formula in the payroll system. "This issue of excessive overtime pay warrants the city's immediate attention because taxpayers have essentially been incurring significant costs that were never approved," City Auditor Michael Houston said in a news release Feb. 20. Here's what the situation means for taxpayers.
Serial California diner caught, charged
A California man accused of repeatedly dining at multiple locations of a South Bay sushi restaurant and leaving without paying has been arrested. He racked up significant unpaid bills over two months, leaving Randy Musterer, owner of Sushi Confidential, struggling to recover potential losses of up to $1,000 in unpaid meals. Unfortunately, this type of incident is becoming increasingly common. And customers dining and skipping out on their bills is just one form of customer-related fraud that restaurant owners face. Some restaurants have also been the target of virtual dine-and-sash scams, with scammers placing orders through food delivery services like DoorDash, picking them up and then submitting claims to the app that they never received their order or disputing the charge with their credit card company. With the recent arrest in Campbell, local business owners hope that these incidents will decrease.
A California man accused of repeatedly dining at multiple locations of a South Bay sushi restaurant and leaving without paying has been arrested. He racked up significant unpaid bills over two months, leaving Randy Musterer, owner of Sushi Confidential, struggling to recover potential losses of up to $1,000 in unpaid meals. Unfortunately, this type of incident is becoming increasingly common. And customers dining and skipping out on their bills is just one form of customer-related fraud that restaurant owners face. Some restaurants have also been the target of virtual dine-and-sash scams, with scammers placing orders through food delivery services like DoorDash, picking them up and then submitting claims to the app that they never received their order or disputing the charge with their credit card company. With the recent arrest in Campbell, local business owners hope that these incidents will decrease.
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