Janet Yellen Dismisses Donald Trump’s Proposal To Replace Income Tax With Tariffs: ‘The Impact Would Be To Make Life Unaffordable …’

Treasury Secretary Janet Yellen publicly criticized a proposal by former President Donald Trump to replace parts of the U.S. income tax with increased tariffs on imported goods.

What Happened: Trump proposed the idea during a meeting with Republican lawmakers on Capitol Hill last week.

The former president is attempting to unify GOP leaders ahead of the July Republican National Convention, according to Reps. Thomas Massie (R-Ky.) and Marjorie Taylor Greene (R-Ga), reported USA Today.

Yellen, however, dismissed the proposal during an interview with ABC. Talking about the feasibility of the idea, Yellen said, “It would require tariffs well over 100%. The impact would be to make life unaffordable for working class Americans, and it would harm American businesses.”

Trump’s proposal came as President Joe Biden‘s approval rating has dropped among voters without college degrees and those earning $50,000 or less annually. During Trump’s presidency, tariffs played a crucial role in his economic strategy, with many Chinese imports facing tariffs as high as 25%.

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Why It Matters: Trump’s proposal to eliminate income tax and replace it with an “all tariff policy” has raised eyebrows. The former president, who reportedly paid little to no income taxes over a decade, pitched the idea during a meeting with Republican lawmakers at the Capitol Hill Club in Washington, D.C. This was Trump’s first time on Capitol Hill since Jan. 6, 2021, when his supporters caused an insurrection.

Experts from both political sides have expressed concerns about Trump’s proposal. A report from the Tax Foundation think tank suggested that new tariffs could actually harm working class Americans and negatively impact international trade.

Now Read: Donald Trump Challenges Joe Biden To Take Cognitive Test, Fumbles Own Doctor’s Name In Process

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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