Donald Trump's proposal for a 10 percent tariff on all imports and a 60 percent tariff on imports from China could cost a typical middle-income household at least $1,700 in increased expenses annually.
An all-tariff policy would not be sufficient to replace the revenue generated by individual and corporate income taxes, leading to economic instability and potentially triggering a tariff war with other countries.
The historical reliance on tariffs as the main source of government revenue was phased out with the introduction of the income tax due to its ability to distribute the tax burden more equitably.
Tariffs have been likened to a regressive tax, imposing a heavier financial burden on individuals with lower incomes compared to those with higher incomes.
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