Trump Proposes Creation of External Revenue Service
On January 15, 2025, Donald Trump announced a significant proposal that has the potential to reshape the landscape of tax collection in the United States. The former president revealed his plan to establish a new government agency tasked with collecting tariffs and tax revenue from foreign entities, a move that could ultimately replace the Internal Revenue Service (IRS). This announcement coincides with Trump's ongoing goal to eliminate income taxes for American citizens, positioning the U.S. economy towards a tariff-based system reminiscent of pre-1910 practices.
Trump's proposed agency, called the External Revenue Service, aims to manage all revenues collected from foreign sources. This initiative represents a stark divergence from the current tax structure, which heavily relies on income taxes from American workers. In a statement posted on Truth Social, Trump emphasized his belief that the U.S. has over-relied on taxing its citizens and highlighted the inefficiencies of existing tax policies.
The motivation behind this plan stems from Trump's assertion that the current taxation system unfairly burdens Americans while foreign entities and countries benefit from lenient trade agreements. He underscores that, historically, the U.S. was among the few nations that could not tax its citizens until the introduction of the 16th Amendment, advocating for a return to tariffs as a primary revenue source for the government. According to Trump, shifting to a system that levies tariffs on foreign trade will ensure that other nations contribute their fair share to the American economy.
Throughout his announcement, Trump criticized the current administrative practices, particularly in high-tax areas like Los Angeles, where residents reportedly pay more than 55% of their income in taxes. He referred to this arrangement as a form of theft, asserting that the government is not effectively utilizing taxpayers' money to improve people's lives. Instead, he suggested that funds have been diverted to provide services for illegal migrants and other countries, exacerbating residents' dissatisfaction.
Trump’s intention with the External Revenue Service is to help correct what he perceives as economic injustices by relieving American taxpayers from the financial burden of income taxes. He posits that a shift to a revenue model based on tariffs could help alleviate the national debt, currently standing at an astonishing $35 trillion, while revitalizing American manufacturing.
Reception Among Biden Administration and Economic Experts
While the news of Trump's proposed agency has stirred excitement among his supporters, a polarized response is expected from the Democratic establishment. Trump’s critics contend that such a pivot back to tariff-based taxation could lead to upheaval in international trade relations, while supporters argue that it exemplifies a much-needed rebalancing of the economic responsibilities placed on American citizens versus foreign entities.
In a related commentary, bank executive Jamie Dimon defended Trump’s stance on tariffs during an interview, recognizing them as a legitimate negotiating tool in international commerce. Dimon highlighted that while tariffs could have economic repercussions, they are essential to addressing national security and competitive fairness in the global market.
In addition to Trump's significant announcement, other political developments are taking shape. With Trump set to be inaugurated as the 47th president in just five days, the transition process is already underway. Reports indicate that Melania Trump has begun preparing the White House, selecting new furnishings to replace those left by the Biden administration.
Moreover, Pete Hegseth, Trump’s nominee for Secretary of Defense, underwent a rigorous confirmation hearing where he confirmed an intention to reinstate military personnel who faced termination or disciplinary actions for refusing the COVID-19 vaccine. This move is viewed as part of a broader effort to rehabilitate the morale within U.S. armed forces and address concerns related to politicization under Biden’s presidency.
With ambitious proposals like the External Revenue Service and other significant administrative shifts on the horizon, the upcoming presidency under Donald Trump promises to challenge the status quo. As the political landscape adjusts to these changes, the ramifications for tax policy, military personnel management, and the broader economy will be closely monitored by both supporters and critics alike. Trump's vision for a reformed economic structure could redefine the American tax system, leaving a considerable impact on the relationship between citizens and their government as he seeks to make America great again.
Part 1/9:
Trump Proposes Creation of External Revenue Service
On January 15, 2025, Donald Trump announced a significant proposal that has the potential to reshape the landscape of tax collection in the United States. The former president revealed his plan to establish a new government agency tasked with collecting tariffs and tax revenue from foreign entities, a move that could ultimately replace the Internal Revenue Service (IRS). This announcement coincides with Trump's ongoing goal to eliminate income taxes for American citizens, positioning the U.S. economy towards a tariff-based system reminiscent of pre-1910 practices.
The Birth of the External Revenue Service
Part 2/9:
Trump's proposed agency, called the External Revenue Service, aims to manage all revenues collected from foreign sources. This initiative represents a stark divergence from the current tax structure, which heavily relies on income taxes from American workers. In a statement posted on Truth Social, Trump emphasized his belief that the U.S. has over-relied on taxing its citizens and highlighted the inefficiencies of existing tax policies.
Part 3/9:
The motivation behind this plan stems from Trump's assertion that the current taxation system unfairly burdens Americans while foreign entities and countries benefit from lenient trade agreements. He underscores that, historically, the U.S. was among the few nations that could not tax its citizens until the introduction of the 16th Amendment, advocating for a return to tariffs as a primary revenue source for the government. According to Trump, shifting to a system that levies tariffs on foreign trade will ensure that other nations contribute their fair share to the American economy.
Criticism of Current Tax Practices
Part 4/9:
Throughout his announcement, Trump criticized the current administrative practices, particularly in high-tax areas like Los Angeles, where residents reportedly pay more than 55% of their income in taxes. He referred to this arrangement as a form of theft, asserting that the government is not effectively utilizing taxpayers' money to improve people's lives. Instead, he suggested that funds have been diverted to provide services for illegal migrants and other countries, exacerbating residents' dissatisfaction.
Part 5/9:
Trump’s intention with the External Revenue Service is to help correct what he perceives as economic injustices by relieving American taxpayers from the financial burden of income taxes. He posits that a shift to a revenue model based on tariffs could help alleviate the national debt, currently standing at an astonishing $35 trillion, while revitalizing American manufacturing.
Reception Among Biden Administration and Economic Experts
Part 6/9:
While the news of Trump's proposed agency has stirred excitement among his supporters, a polarized response is expected from the Democratic establishment. Trump’s critics contend that such a pivot back to tariff-based taxation could lead to upheaval in international trade relations, while supporters argue that it exemplifies a much-needed rebalancing of the economic responsibilities placed on American citizens versus foreign entities.
In a related commentary, bank executive Jamie Dimon defended Trump’s stance on tariffs during an interview, recognizing them as a legitimate negotiating tool in international commerce. Dimon highlighted that while tariffs could have economic repercussions, they are essential to addressing national security and competitive fairness in the global market.
Part 7/9:
Other Political Highlights
In addition to Trump's significant announcement, other political developments are taking shape. With Trump set to be inaugurated as the 47th president in just five days, the transition process is already underway. Reports indicate that Melania Trump has begun preparing the White House, selecting new furnishings to replace those left by the Biden administration.
Part 8/9:
Moreover, Pete Hegseth, Trump’s nominee for Secretary of Defense, underwent a rigorous confirmation hearing where he confirmed an intention to reinstate military personnel who faced termination or disciplinary actions for refusing the COVID-19 vaccine. This move is viewed as part of a broader effort to rehabilitate the morale within U.S. armed forces and address concerns related to politicization under Biden’s presidency.
Conclusion
Part 9/9:
With ambitious proposals like the External Revenue Service and other significant administrative shifts on the horizon, the upcoming presidency under Donald Trump promises to challenge the status quo. As the political landscape adjusts to these changes, the ramifications for tax policy, military personnel management, and the broader economy will be closely monitored by both supporters and critics alike. Trump's vision for a reformed economic structure could redefine the American tax system, leaving a considerable impact on the relationship between citizens and their government as he seeks to make America great again.