U.S. Treasury Secretary Janet Yellen expressed strong opposition to former President Donald Trump’s proposal to replace federal income taxes with tariffs, stating that such a move would make life “unaffordable” for Americans. In an interview with ABC’s “This Week,” Yellen explained that the tariffs required to compensate for the lost income tax revenue would need to exceed 100%, significantly raising the cost of imported goods.
Key Points:
- Tariff Proposal: Trump’s plan involves eliminating federal income taxes and implementing high tariffs on imports to generate equivalent revenue.
- Economic Impact: Yellen warned that the substantial tariffs would lead to higher consumer prices, disproportionately affecting working-class Americans and harming U.S. businesses.
- Administration’s Economic Policy: Yellen defended the Biden administration’s efforts to manage inflation and address high costs of living, acknowledging the lingering economic challenges from the COVID-19 pandemic.
- Public Perception: Addressing why polls show more trust in Trump over Biden on economic issues, Yellen cited the ongoing financial difficulties faced by Americans, which have been exacerbated by post-pandemic inflation.
Quotes:
- “It would require tariffs well over 100%. The impact would be to make life unaffordable for working class Americans and would harm American businesses,” said Yellen.
- “The inflation that we experienced after the pandemic just compounded this feeling for them that life isn’t affordable,” she added.
Context:
This discussion arises as part of Trump’s broader economic vision, which he has been sharing with GOP lawmakers, suggesting a major shift in tax policy. The Biden administration remains focused on mitigating the economic fallout from the pandemic and addressing cost of living concerns.
Subscribe to our newsletter
COMMENTS