Donald Trump has just dropped a political and economic bombshell.
A proposal that would rewrite the financial foundation of the United States.
His idea: abolish federal income taxes entirely and run the entire government using import tariffs only.
The shockwave hit global markets instantly.
๐ฅ Why This Proposal Is Explosive
If Americans keep their full salaries with zero income tax, consumer behavior changes overnight. Spending rises. Savings shift. Risk appetite grows. But the cost is massive.
Import tariffs currently generate only a tiny slice of federal revenue. Replacing income tax with tariffs would force prices on imported goods to surge. That includes food, electronics, cars, medicine, and countless essentials.
Economists are calling it high-risk for a reason.
โ ๏ธ Key Risks the Market Is Watching
โข Imported goods could become expensive, lifting inflation
โข Families, especially the middle class, face higher day-to-day costs
โข Businesses with global supply chains would see profit pressure
โข Federal revenue becomes unpredictable, making long-term planning uncertain
โข Wealthier individuals may benefit since their income goes untaxed, while consumers face higher product prices
This is not a small tweak.
This is a complete rewrite of the U.S. revenue system.
And whenever the foundation shakes, markets react fast.
๐ Impact Snapshot
Consumers: Essentials may cost more, shrinking real purchasing power
Businesses: Supply chain costs jump, pressuring margins
Economy: Revenue reliability drops, while inflation risk rises
Investors: Volatility becomes the new normal
Crypto traders are on high alert.
Coins like $ORCA, $BAT, $TURBO and other volatility-driven assets could see sharp moves as the market digests the potential policy shift.
This is one of those macro moments where narratives flip quickly.
Eyes on Washington.
Eyes on the charts.
Because if this proposal gains traction, the entire financial landscape could transform.
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