On Sunday, U.S. President Donald Trump announced the possibility that, once the tariffs take effect, there could be a reduction or elimination of income taxes for individuals earning less than US$200,000 a year.

“When the tariffs cut in, many people’s income taxes will be substantially reduced, maybe even eliminated entirely. Focus will be on those earning less than $200,000 a year,” the Republican president wrote today on his social media platform, Truth Social.

“Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned,” he added.

“It will be a bonanza for America!!! The External Revenue Service is happening!!!” the U.S. President concluded.

This week, a coalition of twelve states, led by the attorneys general of Oregon and Arizona, filed a lawsuit seeking to block the tariffs imposed by Trump, arguing that the tariffs are “illegal.”

The lawsuit aims to block the imposition of a 145% tariff on most products from China and a 25% tariff on most products from Canada and Mexico, important trading partners of the plaintiff states.

It also challenges the 10% tariffs on most products imported from the rest of the world, as well as the Trump’s plan to raise tariffs on imports from an additional 46 trading partners starting on July 9.

      • Acute_Engles [he/him, any]
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        205 days ago

        Ok so about the same as up here. Glad to have my perspective corrected.

        I know there are specific states that have less tax, though, right?

        • spectre [he/him]
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          415 days ago

          It’s not really true unless you are wealthy enough to have an accountant shuffle your money around for you. Most states end up around the same amount once all is said and done cause that’s how much it costs to run a state.

        • Sulv [he/him, undecided]
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          5 days ago

          Yes, we pay federal income tax and state income tax. Some states have variable income based rates, some are flat. Iirc there’s some state (North Dakota maybe) that has zero state income tax for lower income people.

          Don’t get me started on how sales tax disproportionately affects lower income people.

              • Frogmanfromlake [none/use name]
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                195 days ago

                Not great compared to other developed countries but noticeably better. New York State has more resources for neurodivergent people than Florida and I believe their SNAP benefits give out more as well.

          • Acute_Engles [he/him, any]
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            55 days ago

            You don’t have to tell me, been working poor my whole life but i would like to get you started because i steal other people’s words for conversations in real life so my positions sound smarter i-love-not-thinking

            • Sulv [he/him, undecided]
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              5 days ago

              I’m sure you get the gist then

              For arguments sake let’s say someone making 100k a year and someone making 50k a year both consume the same amount of necessities. Therefore they are paying the same ~10% tax on groceries, gas, clothing, household items, etc. While they both pay the same amount of sales tax, in reality, the tax burden is doubled on the 50k earner. They have half as much money but are paying the same amount of sales tax.

              Personally, I think sales tax should just be abolished, but that’s in a world where that lost tax income is coming from taxes on high earners and the wealthy.

          • blunder [he/him]
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            24 days ago

            Texas, New Hampshire, Florida, Nevada, I think South Carolina, there are a number of states with no state income tax

        • invalidusernamelol [he/him]
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          5 days ago

          Yeah, State income tax is reduced in some places. My federal taxes are ~$250/wk while state taxes are ~$50/wk. That’s middle of the road for state tax. I know California and NY charge a lot more, but they also get a lot of that with higher property taxes. Which I wouldn’t have to pay because I don’t own property.

          Also it’s not technically a tax, but health insurance is another $100/wk for a plan that requires me to spend $8000 out of pocket before they even consider paying for anything. If I don’t take that employer offered health insurance, I have to pay an additional tax penalty at the end of the year that goes to the health insurance companies, so it’s kinda a tax.

            • invalidusernamelol [he/him]
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              165 days ago

              Hey, they gotta pay for those warplanes and missiles somehow. Awesome how the roads and infrastructure around us is totally collapsing and taxes keep going up for poor people.

              Am glad my boss got that PPP loan though. Him and his son got new houses and cars when they cashed it out then laid everyone off.

        • LanyrdSkynrd [comrade/them, any]
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          135 days ago

          No income or sales tax in NH, but it’s not a good thing. It actually makes taxes regressive because property tax has to be so much higher to pay for the schools. People in poor communities pay sometimes 10x the property tax rate for much worse schools.

    • IHave69XiBucks
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      285 days ago

      Rich people basically pay 0 taxes in America, people that work a job do pay taxes they just dont get anything for it. lol

        • TrustedFeline [she/her, comrade/them]
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          124 days ago

          Don’t bother trying to understand American taxes. It’s fucking insane.

          The government withholds money from your paycheck for taxes. Makes sense, right? Except in most cases, they withhold more than you actually will end up owing the government. The IRS knows ho much money you’re making, and they know how much you owe or are owed. But instead of just sending a check or bill, they make you calculate it yourself every year.

          most low income americans end up paying very little in income tax (but only if they get their ducks in a row)

        • quarrk [he/him]
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          5 days ago

          Just to pile on more info. There are dozens of minor taxes levied at the federal, state, and local (usually municipal) level. In some states with a flat tax rate, these are used to make up for the lost revenue which a progressive tax would have brought in.

          You can bet that someone has considered a lemonade stand tax. That’s the level of specificity

    • SamotsvetyVIA [any]
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      105 days ago

      Aren’t the tax rates in the west and specifically in America the highest on account of their currency’s position?

    • Dimmer06 [he/him,comrade/them]
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      5 days ago

      It can vary. The effective federal income tax rate is around fifteen to twenty percent for most earners. There’s another 7.5 percent or so for federal benefits (Medicare and Social Security). State income taxes vary from zero in a few states to thirteen percent on the highest income bracket in California, but probably average out to five or six percent. Most (or all?) states require employees to cover some burden of their unemployment insurance as well. Some municipalities also have income taxes.

      Americans also usually pay taxes on their homes, cars, and sales tax.

      • regul [any]
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        54 days ago

        And rather than just paying taxes for health care, your employer deducts the cost from your paycheck and gives it directly to a private company, but this is not considered a tax.

    • frogbellyratbone_ [e/em/eir, any]
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      5 days ago

      i’m not sure what your perspective is, might be true tbh, but paying Federal taxes pisses me off because i know i pay a shit ton more than assholes who make 5-30x my salary and it all goes to the war machine instead of social programs / welfare.

      living in california making $65,000 pays ~$16,000 of income taxes. income is the bulk of tax, but additional taxes are: sales tax (~10%), 1.2% property tax, vehicle reg, gas tax, state disability insurance tax, parcel taxes, etc.