Hello and welcome to today’s one-minute briefing. President Trump has revived a century-old idea: funding the U.S. government with border levies instead of income taxes. He’s even proposed an “External Revenue Service” to scrap personal income tax for anyone earning under $200,000. “It will be a BONANZA,” he posted on social media, predicting trillions in new revenue. But economists are already dialing back those expectations. Before 1913, tariffs did cover big chunks of federal spending, but today’s global trade and supply chains make a similar windfall unlikely. Forecasts suggest tariffs would bring in far less than the trillion dollars Mr. Trump needs, and higher import duties could drive up consumer prices and spark retaliation from trade partners. In short, the bonanza might be more disappointment than payday. Thanks for listening.
Link to Article