Trump's tax plan would provide income tax cuts for more than 93 million Americans, but analysts think it won't work

Analysis points out that Trump's tax reform ideas could provide full or partial income tax cuts for about 93.2 million Americans, which is a large part of the US electorate. As part of his economic propaganda to voters, Trump has proposed a comprehensive tax reform, including a series of income tax cuts. So far, Trump has formally proposed to eliminate income taxes on tips, Social Security benefits and overtime pay. Last week, in an interview with the sports media website OutKick, Trump said he would consider tax cuts for firefighters, police, military personnel and veterans. These exemptions are part of Trump's larger vision of transitioning away from an income tax system and replacing it with the revenue that the tough tariff proposals will generate. Trump has promised to impose a general tariff of 20% on all imports from all countries, including a specific tariff of 60% on Chinese imports. Tax experts do not believe that tariff revenue can offset the losses from the elimination of income tax. "It's not going to work," Garrett Watson, a senior policy analyst at the nonpartisan Tax Foundation, said in an interview. He said Trump's tariffs would raise about $3.8 trillion in revenue over the next decade, far less than the estimated $33 trillion in revenue that income taxes would bring in over the same period. Tax exemptions for tips, overtime pay and Social Security benefits would reduce federal tax revenue by $2 trillion over the next decade, according to the Tax Foundation. Taking into account Trump's tariff plan and other tax cuts, his overall plan would result in a reduction of about $3 trillion in federal tax revenue between 2025 and 2034. Trump's proposal to weaken the income tax system comes as he promises to make permanent the 2017 tax cuts that expire in 2025. But even if Trump defeats Harris in the November election, his tax reform plan would not be enacted with a Republican majority in the House of Representatives, where all tax bills are introduced. Republicans currently control the House by a narrow margin. (CNBC)