Janet Yellen
Treasury Secretary Janet Yellen criticized former President Donald Trump for proposing to replace portions of U.S. income taxes with increased tariffs on imported goods.
Trump proposed the idea during a Thursday visit to Capitol Hill, where he met with Republican lawmakers to try to unify GOP leaders ahead of the July Republican National Convention, according to Representatives Thomas Massie (R-Ky.) and Marjorie Taylor Greene (R-Ga.).
Yellen rejected the potential economic plan during an appearance on ABC’s “This Week.”
“Donald Trump floated an idea of replacing all federal income taxes with high tariffs,” host Jonathan Karl said. “Any way that that is remotely feasible?”
“It would necessitate tariffs exceeding 100%,” Yellen responded. “This would make life unaffordable for working-class Americans and harm American businesses.”
Some political observers noted that Trump’s suggestion comes as President Biden’s appeal among voters without college degrees or those in households earning $50,000 a year or less has declined. Tariffs were a significant part of Trump’s economic approach as president, and he imposed tariffs of up to 25% on many imported Chinese goods during his term.
However, experts from both sides of the political spectrum have raised concerns about Trump’s policy proposal. For instance, a report from the think tank Tax Foundation argued that imposing new tariffs could harm working-class Americans and negatively impact international trade.
