Trump Visits Washington: "Corporate Tax Rate to 20%... Income Tax Abolished Through Tariffs"

Former U.S. President and Republican presidential candidate Donald Trump visited Washington D.C. on the 13th (local time) and announced plans to lower the corporate tax rate to 20% and reduce income taxes. During a meeting with Republican lawmakers, he also proposed the idea of ultimately abolishing income tax through a 'universal tariff' on all imported goods.

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According to Bloomberg News and others, Trump made these remarks while attending the Business Roundtable (BRT) event held in Washington D.C. that day. Speaking to about 100 corporate executives, including Jamie Dimon, Chairman of JPMorgan Chase, and Tim Cook, CEO of Apple, he said, "A corporate tax rate of 20% is a good number." Analysts estimate that lowering the current corporate tax rate from 21% to 20% would result in billions of dollars in annual tax cuts for large corporations.

Trump also stated that he would make permanent the tax law revisions he enacted in 2017, urging the extension of tax cuts for individuals and small businesses set to expire next year. Furthermore, he promised to undertake significant deregulation if he wins the upcoming November presidential election. He criticized the Biden administration's energy project approval processes as another form of regulation or taxation.

On the same day, Trump emphasized his tax cut policies during a private meeting with Republican lawmakers. CNBC, citing sources, reported that Trump discussed the idea of imposing a universal tariff on all imports to ultimately eliminate income tax. This strategy aims to offset revenue shortfalls caused by various tax cuts through tariffs. Another source also mentioned that the use of tariffs to enhance bargaining power in international trade was discussed during the meeting.

This suggests that if Trump, who led a major trade war with tariffs during his first term, wins the November election, he may adopt an even more protectionist trade policy. That morning, Trump posted on his social media platform Truth Social, saying, without going into detail, "There were many discussions, and all were positive," conveying the atmosphere.

However, Trump’s plan to replace lost tax revenue from various cuts with tariffs has already faced criticism. Imposing high tariffs on imports inevitably leads to higher product prices, increasing the burden on consumers.

David Kamin, a law professor at New York University, pointed out on X (formerly Twitter) that "replacing income tax with tariffs is a sure way to hit middle- and low-income Americans hard while rewarding the upper class." Katherine Rampell, a columnist for The Washington Post, criticized the plan, saying, "It sounds like a massive tax increase on the middle and lower income groups."

Bloomberg News also noted that tariff revenues under the Biden administration have already tripled compared to the Trump administration’s tariff hikes, adding, "Tariffs account for only about 2% of federal revenue, whereas individual income taxes make up about 50% as of 2023," criticizing the plan.

Trump’s visit to Washington D.C. this time attracted attention as it was his first visit to the federal Capitol in over three years since the January 6th Capitol riot. With the November election about five months away, it was seen as a "spectacular comeback" demonstrating his potential to return to the White House as the Republican presidential candidate. This contrasts sharply with his visit to Washington D.C. in August last year for indictment proceedings related to attempts to overturn the 2020 election results.

Local media reported that during a breakfast meeting with Republican House members that morning, the attendees showed enthusiastic support by singing a group birthday song for Trump. At the same day’s meeting with Republican senators, Senate Majority Leader Mitch McConnell, who had a strained relationship with Trump after criticizing him over the January 6th riot, was also present.

After the meeting, Trump told reporters, "It was a great meeting," emphasizing his presidential victory goal by saying, "One thing we have in mind is to make America great again." Meanwhile, the Democratic Party and the Biden campaign arranged for a billboard truck near the event venue displaying footage of the January 6th Capitol riot attacks by protesters and aired ads featuring related images in battleground states, raising concerns about a "threat to democracy."

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