President Donald Trump said on April 27 that the tariffs he imposed on U.S. trading partners will lead to a substantial reduction in tax rates for those making less than $200,000 a year.
“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump wrote in a post on his Truth Social platform.
“Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned.”
He called it a “bonanza for America.”
Trump has been looking to extend his 2017 tax cuts, which are set to expire later this year, along with keeping his 2024 campaign promises of no taxes on tips or on Social Security payments.
In an interview with TIME Magazine that was published on April 25, Trump said he “love[s] the concept” of raising taxes on millionaires as a means of paying for an extension of the 2017 tax cuts.