Former President Trump Suggests Replacing Federal Income Tax with Tariffs and Using Bitcoin to Address National Debt

According to Cointelegraph: In a recent appearance on The Joe Rogan Experience, former President Donald Trump proposed a bold fiscal policy change: eliminating the federal income tax and funding government operations through tariffs on imports. Citing former President William McKinley’s 1890s-era tariff policies, Trump argued that tariffs generated so much revenue then that officials struggled to allocate the funds effectively. He contended a similar approach today could stimulate the economy, protect domestic industries, and create demand for the U.S. dollar, although critics warn it could raise consumer prices.Trump Suggests Bitcoin as a Debt SolutionTrump has also hinted at using Bitcoin to address the United States’ $35 trillion national debt, an idea he floated on Fox News with Maria Bartiromo. He suggested that Bitcoin reserves could offer a novel method for reducing federal debt by transferring the government’s seized cryptocurrency assets to the U.S. Treasury. While Trump is not alone in his vision—former candidate Robert F. Kennedy Jr. previously proposed a Bitcoin strategic reserve—experts like asset manager Bryan Courchesne note that creating a U.S. Bitcoin reserve would face significant bureaucratic challenges, despite its potential.Bitcoin and Tariffs: A Bold Policy OutlookIf implemented, these proposals could reshape the U.S. fiscal landscape. Trump’s plans, however, remain speculative, as Polymarket odds give him a 65% chance of securing victory in the upcoming presidential election. Nonetheless, his ideas highlight a growing trend of candidates advocating for alternative approaches to longstanding economic challenges, from leveraging digital assets to rethinking taxation.