Trump claims tariffs could ‘eliminate’ taxes for most of Americans, but experts argue the math doesn’t add up

Trump claims tariffs could ‘eliminate’ taxes for most of Americans, but experts argue the math doesn’t add up
Trump claims tariffs could 'eliminate' taxes for most of Americans, but experts argue the math doesn't add up

president Donald Trump He says Definitions It can make a financial surprise to ordinary Americans – by wiping their income taxes.

“When the definitions are reduced, taxes will be largely reduced by many people, and perhaps even completely cancel it,” Trump has in fact declared social fact mail On April 27. “The focus will be on people who get less than $ 200,000 a year.”

This is a bold promise, especially given that only 14.4 % of American families got more than $ 200,000 annually in 2023, according to the Statistical Office Data. In other words, if Trump’s vision is correct, the vast majority of Americans will not pay any tax at all.

But do not celebrate yet. While Trump is optimistic, experts say mathematics simply does not add up.

Economists answer On April 28 that “the individual income tax raises more than 27 times the revenues of the customs tariff” and “canceling income taxes for a sub -group of taxpayers, such as those who get $ 200,000 or less, requires much higher alternative revenues than the customs tariff can generate.”

They estimate that the customs tariff imposed by Trump and its skin as of 2025 will generate approximately $ 167 billion of new federal tax revenues in 2025 – cover less than 25 % of the cost of canceling income taxes for people of less than $ 200,000.

While Trump’s proposal faces serious doubts, the changes in politics are not the only way to reduce tax bills. Below is a strong prize that ordinary investors can use for them.

Scott Galloui, Professor of Marketing at Stainen Business College at New York University, Once he said If you are trying to build wealth, you have “a commitment to pay little tax as much as possible.”

His advice? It remains simple: “You buy stocks, and never sell them, you are borrowing them.”

Galloway broke it an example: “You have $ 100 in Amazon shares. You need money to buy something. Instead of selling shares, let’s say that it has risen by 50 % … you must make capital gains and pay long -term capital gains for that by $ 5.

Read more: here 5 “The” elements that Americans pay always have to be – It regrets very quickly. How many harm to you?

This strategy allows investors to benefit from the value of their portfolios without provoking a taxable event. Since capital gains are subject to tax only when they are achieved, borrowing against estimated assets allow investors to reach cash with taxes.

Meanwhile, investments themselves can continue to grow. Since the loan interest is often smaller than the tax bill than the sale, this approach can be a powerful tool to maintain wealth and more double it over time.

Real estate has always been one of the assets to build wealth-and one of the reasons is the generous tax treatment it receives.

When you earn rent revenues from an investment property, you can claim discounts for a wide range of expenses, such as the benefit of mortgage, real estate taxes, insurance, maintenance and continuous reforms.

Real estate investors also benefit from consumption – a tax discount that admits the gradual wearing of property over time.

You do not need to be a millionaire or buy a direct property to take advantage of real estate investment. Collective financing platformsFor example, allowing ordinary investors to own shares in rented real estate without large payments or traditionally associated administrative headache.

Instead, Real estate investment funds (investment funds) Provide another way to those who look forward to this asset category.

This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.

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