Source: Wall Street See

Since the January 6th US Congress riot, Trump returned to Capitol Hill after three years and proposed the idea of a "full tariff" system, pushing the "raise tariffs + reduce taxes for businesses" policy to the extreme. On Thursday, Trump returned to Capitol Hill and met with House Republicans and US business leaders, according to a Republican congressman who attended the meeting. At Thursday morning's meeting with House Republicans, Trump proposed the idea of a "full tariff" federal revenue system that could replace income tax in scale.

According to a Republican congressman who attended the meeting, Trump returned to Capitol Hill on Thursday and held meetings with House Republicans and US business leaders.

At Thursday morning's meeting with House Republicans, Trump proposed the idea of a "full tariff" federal revenue system that could replace income tax in scale.

Analysis points out that Trump has always supported raising tariffs to protect domestic industries while long-term supports reducing taxes for businesses. The full tariff policy combines these two positions and pushes them to the extreme, reversing economic policies that encourage free trade for more than 100 years and require higher tax rates for high-income families than middle-class ones. This policy stance seems to be a return to 19th-century fiscal policy.

This is equivalent to a tax cut for the high-income population, while shifting the cost of tariffs onto consumers. David Kamin, a law professor at New York University, wrote on X that replacing income tax with tariffs would definitely hit low- and middle-income Americans hard while rewarding the high-income population, which sounds like a hefty tax increase for the low- and middle-income classes.

Raise tariffs.

Trump advocated tariffs in his first term in office. According to sources, Trump also talked about using tariffs as leverage to negotiate with "bad actors" at Capitol Hill.

This indicates that Trump, who once made "tariffs" the main tool of his foreign policy, may significantly enhance the protectionist trade agenda if he defeats Biden in November.

Trump is considering imposing a minimum 10% tariff on all goods imported to the US from other countries if he is re-elected.

As one of the largest importers in the world, Trump's tariff plan could involve taxing more than $3 trillion in imported goods every year, and this extensive tariff may have far-reaching impact on global supply chains and international trade.

In addition, implementing this policy may cause the price of many imported goods to rise, which may push up overall consumer prices and lead to inflation in the US and globally.

Reduce taxes for businesses.

On Thursday, Trump held a private meeting in Washington with about 100 CEOs of the largest US companies and expressed his support for lowering the corporate tax rate. Participants included JPMorgan CEO Jamie Dimon and Apple CEO Tim Cook.

According to informed sources, Trump promised to lower the corporate tax rate to 20% and further reduce the income tax of large US companies, which he had already significantly cut during his tenure.

Analysis shows that the current corporate tax rate is 21%, and even a small tax cut means a tax reduction of billions of dollars for US companies that are profitable every year. Two sources familiar with Trump's comments said that 20% is a very close number.

In addition, Trump promised to make his tax cut policy signed in 2017 permanent and urged the key parts of the bill to be updated, including the tax cut for individuals and small businesses. He also advocated exempting tips from federal taxation.

In addition, Trump promised to significantly reduce regulations if he wins a second term. He also disparaged licensing programs for energy projects and other uses, calling them another form of regulation or taxation.

Trump leads Biden in public opinion polls.

It is worth mentioning that Trump met with Republican congressmen and business leaders on Capitol Hill. This is his first return to the area since January 6, 2021, when then-president Trump incited violent rioters to storm into the Capitol, temporarily halting the peaceful transfer of presidential power and was impeached by the House of Representatives.

Currently, multiple national and state polls show that Trump is leading Biden in this evenly matched election.

Republican members of the House of Representatives also stated that they "strongly support" Trump and his ideas. Most of the Republicans who had previously criticized Trump are now publicly supporting him. Trump's return to Capitol Hill can be seen as a political reconciliation to some extent.

Louisiana Senator Cassidy, who voted to convict Trump of inciting insurrection, still attended a meeting with Republican senators. Cassidy said, "Polls show he will be our next president, so you have to work with him."

Polls show he will become our next president, so you have to cooperate with him.

Damon once angrily attacked Trump, but now he also says: "Trump's policies are worthy of praise, and I am ready to work with Trump again, just like I am willing to work with any president."

Trump's policies are worthy of praise and I am prepared to work with him again, just as I am prepared to work with any president.

Editor/tolk