Grant Cardone, the renowned entrepreneur and real estate mogul, has stirred social media with his bold call to “cut federal taxes to zero.” Cardone, famous for his no-nonsense views on money and business, believes eliminating federal taxes could lead to what he calls an “era of prosperity and prosperity” for the United States and people better knowing how to spend their money need to invest more than the government. .
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Social media users had mixed reactions, with some supporting the idea of replacing income taxes with tariffs. One user even suggested using a simple sales tax and tariffs to pay for federal spending.
Donald Trump, the newly elected president, has expressed interest in replacing the federal income tax with tariffs. He has proposed imposing high tariffs on raw materials from other countries, especially China.
According to the Tax Foundation, introducing universal rates could generate significant revenue. Estimates suggest that a 10% universal rate could raise about $2 trillion over the next decade, while a 20% rate could raise about $3.3 trillion. However, these tariffs would also impose higher costs on American households, with a 10% rate could increase household expenses by more than $1,200 per year and a 20% rate could increase expenses by more than $2,000.
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The reality is that moving from an income tax system to one funded entirely by rates and sales taxes would be a huge shift – one that would require significant legislative changes and support from both houses of Congress.
Experts like Kimberly Clausing of the Peterson Institute for International Economics have expressed concern about such proposals, calling them potentially the most “inflationary platform” in recent years. The big concern is that without federal income taxes, the government would have to cut crucial programs such as Social Security, Medicare and military spending. This is exactly what Musk and Ramaswamy’s newly formed committee must assess.
Still, Cardone seems optimistic. He indicated that eliminating federal taxes could lead to significant growth for businesses and individuals. Its supporters argue that a simpler tax system – with fewer deductions and fewer loopholes – could lead to a fairer distribution of wealth. However, as economist Justin Wolfers noted, a vague promise to cut taxes without a solid plan doesn’t necessarily guarantee lower inflation or better economic health.
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This article “Cut Federal Taxes to ZERO,” says Grant Cardone. Here’s Why He Believes Zero Federal Taxes Would Lead to an ‘Era of Prosperity and Prosperity’ originally appeared on Benzinga.com
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