US President Donald Trump has stated that federal income taxes may be 'substantially reduced' or even eliminated as tariffs are implemented. In a recent post on Truth Social, he emphasized that individuals earning less than $200,000 per year would benefit from these tax cuts. Trump referred to a restructuring of federal funding through import tariffs, which he dubbed the 'External Revenue Service,' suggesting a shift from traditional taxation via the IRS. This move could potentially stimulate asset prices, including cryptocurrencies, by increasing disposable income. Trump's suggestion of replacing the federal income tax with import duty revenues echoes ideas he previously discussed during his campaign. He envisions returning to a prosperous era reminiscent of the Gilded Age. Recent research hinted that his plan could save Americans substantial amounts in lifetime taxes if wage-based taxes are eliminated. However, Trump's administration has faced criticism for its fluctuating trade policies, which have led to increased market volatility and skepticism about the effectiveness of protectionism.

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