Trump Suggests Establishing a New Agency to Gather Revenue from Overseas Sources
Incoming President Donald Trump unveils the 'External Revenue Service' for tariff and duty collection, indicating a change in U.S. trade policy as he nears inauguration.
Donald Trump, the President-elect, announced on Tuesday his intention to establish a new government body, the 'External Revenue Service.' This agency is designed to collect tariffs, duties, and other revenues from foreign sources.
This development comes as he plans to implement new import tariffs following his inauguration for a second term on January 20. Through a post on Truth Social, Trump argued that Americans have been excessively taxed by the Internal Revenue Service, while foreign entities benefiting from U.S. trade have not adequately contributed.
The proposal suggests a significant overhaul of U.S. revenue collection with a focus on foreign sources, though details remain unclear.
Trump did not specify whether this new authority would take over the responsibilities of the U.S. Customs and Border Protection in tariff collection or the IRS's duties in collecting taxes from foreign corporations and individuals.
This announcement has sparked concerns about potential growth in government bureaucracy, possibly conflicting with Trump's previous initiatives to streamline operations, such as his informal Department of Government Efficiency with Elon Musk and Vivek Ramaswamy.
Trump's idea of replacing income taxes with tariffs, a topic from his campaign, has faced skepticism.
Economists, including those from the Tax Foundation, argue a 20% tariff would generate considerably less revenue than the present tax system, with projections indicating $3.3 trillion over a decade compared to up to $18 trillion annually from the IRS.
Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, criticized Trump's plan, describing it as a hidden tax increase on American families and small businesses.
Trump proposed specific tariff rates: a 10% tariff on global imports, 25% on imports from Canada and Mexico, and a 60% tariff on Chinese goods.
Experts caution these tariffs could disrupt trade, raise costs, and trigger retaliatory measures against U.S. exports, further complicating America's trade dynamics.
This development comes as he plans to implement new import tariffs following his inauguration for a second term on January 20. Through a post on Truth Social, Trump argued that Americans have been excessively taxed by the Internal Revenue Service, while foreign entities benefiting from U.S. trade have not adequately contributed.
The proposal suggests a significant overhaul of U.S. revenue collection with a focus on foreign sources, though details remain unclear.
Trump did not specify whether this new authority would take over the responsibilities of the U.S. Customs and Border Protection in tariff collection or the IRS's duties in collecting taxes from foreign corporations and individuals.
This announcement has sparked concerns about potential growth in government bureaucracy, possibly conflicting with Trump's previous initiatives to streamline operations, such as his informal Department of Government Efficiency with Elon Musk and Vivek Ramaswamy.
Trump's idea of replacing income taxes with tariffs, a topic from his campaign, has faced skepticism.
Economists, including those from the Tax Foundation, argue a 20% tariff would generate considerably less revenue than the present tax system, with projections indicating $3.3 trillion over a decade compared to up to $18 trillion annually from the IRS.
Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, criticized Trump's plan, describing it as a hidden tax increase on American families and small businesses.
Trump proposed specific tariff rates: a 10% tariff on global imports, 25% on imports from Canada and Mexico, and a 60% tariff on Chinese goods.
Experts caution these tariffs could disrupt trade, raise costs, and trigger retaliatory measures against U.S. exports, further complicating America's trade dynamics.
