Replacing taxes with tariffs: Breaking down Trump's tariff-for-tax cuts plan

Jason Furman, Harvard’s Kennedy School of Government economics professor and former CEA chairman, and EJ Antoni, Heritage Foundation economist, join 'Squawk Box' to discuss former President Trump's tax plan, replacing taxes with tariffs, impact on the economy, and more.

[timmysimmons]

I like keeping my money. I pay more in federal taxes than I get back at the end of the year. So I'll keep more money I'm game. I don't need to fund wars. I need to fund my family

[tonyaburnett]

Only people mad about tariffs will be people who get most of their goods out of America, make them here period

[latoyia-zn]

I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.

[eliw]

Tariffs are better than income tax because nobody will force me to buy the taxed goods. I am forced to pay income tax.

[taylorruss]

Wouldnt this incentivize companies overseas to relocate branches here? Just asking a question

[HareshVaswani-ks]

The heritage guy is nuts. When prices were added, prices went up.

[HailinRain]

If you’re mad about inflation, you’re going to really dislike what tariffs do.

[SunbeamGiant]

We don’t have a revenue problem, we have a spending problem

[thomasw]

I enjoy seeing different perspectives on the issue. Really makes you think. The thing is….when I buy something, it’s my choice to buy it. I will always buy a US-made product. But again, my choice. I can choose to spend less if I want to. I would love to have tax-free income.

[jimmycrackcorn]

Falacy #1...corporate tax rates are NOT passed on to the consumer. Prices are set based on supply and demand, NOT on a profit target.

[tonyaburnett]

No tariffs or low tariffs only benefit imagrant with their food products for the most part and I guess othere goods like cars and so on if they are from other countries, so what let the people who want them pay more. Make it here to save money period. Me and others poor citizens want our money to save and invest in America.

[mrRambleGamble]

I'm fine paying more for items so they're made in America and provide American jobs.

There are so many times we see a "growing economy" but it's not translating to middle class wages.

[leechowning]

VATs/tariffs are used by most of the 1st and 2nd world, in fact the US is one of only a few dozen nations worldwide that does not do it... and I have to look at why.

Every nation I can think of that has the "low tariff free trade" model has a massive divide between workers and business owners, and yes that includes the US and Haiti.

What we been doing has not worked. Perhaps listening to the rest of the worlds economists will.

[jefflassle]

E.J. Antoni from the Heritage Foundations has no clue and is entirely incorrect. All the US tariffs on China were passed through to the manufacturer, distributor, and finally to the end user one way or another. China has never paid one dime to the US on US tariffs. I've been paying duties and tariffs for over 30 years and an expert domestic and international commodity trader supplying our nation's factories, distributors, and retail operations.

[kevinw]

There is no dispute that whatever tariff charged will be borne by the consumers. The real question is whether imposing more tariffs will incentivize companies to set up factories in the US, and thus creating more jobs for Americans. Presuming companies will move their manufacturing base back to the US, are there enough young Americans who are willing to work in manufacturing jobs?

[Chasingmew]

This doesn’t make sense, wouldn’t higher tariff rates mean foreign companies wouldn’t want to sell their products in the United States?

[KattMaroon]

Add in 11 million illegal immigrants; on the US and their spending spree…. They should be sued by every American

[CamdenVanderlaan]

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

[sscalercourtney]

My wife is about to retire and seriously lower our income. I calculated that Federal Income Taxes would fall to less than a $ 1, 000 a year for us. Tariffs would increase prices we have to pay by $2, 400. Let's see, tariffs add $1400 to what I'd have to pay. And in the 1920's when tariffs were considered the answer to the hated Income taxes from around World War I, other nations raised their tariffs on US goods and we had the biggest depression of all our History. I know this isn't what people want to hear, but it's true. It's been so long ago and President Trump fails to realize that between 1880 and 1930, the US averaged a Depression every six years. (Called Panics in the early years)
However, Trump's tax plan and tariff plan will shift the tax burden more to poor people roughly 47% who pay no taxes now. This is a brilliant way to make the poorest 47% of Americans pay far more of their fair share of our taxes. I only minored in Economics but had a 3.75 GPA. My net worth has gone up under Clinton, Bush, Obama, Trump and Biden. It hardly matters to me now who wins. If Harris wins I'll look at the stock market. It Trump wins I'll go with fixed income. Either way, I have enough money to increase my net worth under either of them. I learned from a multi-millionaire back in 1978 to write and date checks to both parties and then only give the check to the winner to get the winner to support your business. Taking care of you, not who wins is how you win. When you only support one party you keep them winning, not you. Most people didn't realize that back in 1978 and most people don't realize it in 2024.
It's like with pumping oil. Fracking lead to cheaper natural gas prices which most utilities now use. Yet working coal miners support more fracking which kills the coal business with cheaper natural gas. It doesn't matter whether it's liberals or conservatives. Both allow fracking and yet coal miners never see the connection.
It's just like most people don't realize most foreign aid goes to nations which allow our military bases to be in their nations thus protecting us. And the majority of foreign aid goes to held other nations buy our military products thus keeping American workers in the Defense Industry employed. Yet many defense workers want to cut the foreign aid that helps keep them employed. Of course, actually they want foreign aid that helps them. Everybody does. Everybody wants to cut the other guy, not themselves. And wonder why elections don't much matter. Take care.

[TheBrandyMitchell]

National Heritage Foundation AGAIN!!!!