Trump's Audacious Revenue Service Proposal Sparks Controversy

Donald Trump plans to institute the External Revenue Service to collect tariffs from foreign sources. The move aims to replace current tax systems with tariff revenue but faces critique for potentially increasing a tax burden on American citizens. The economic impacts remain heavily debated.

President-elect Donald Trump's announcement of a new governmental body, the External Revenue Service, has stirred significant debate amid economic forecasts. The agency, set to impose tariffs and collect revenues from foreign entities, is anticipated to rise alongside Trump's inauguration next week.

Trump's proposal centers around shifting tax burdens by imposing tariffs on international trade, which he argues have long advantaged global economies at America's expense. The proposal's implications on the Internal Revenue Service's role remain unclear, as does its potential to add bureaucratic layers despite Trump's pledge for efficiency.

Critics, including Senator Ron Wyden of the Senate Finance Committee, lambast the plan as a disguised tax hike on U.S. families, suspecting it would undermine trade agreements and heighten consumer costs. Experts highlight the economic risks of imposing substantial tariffs, particularly in relation to U.S. trade relations with China, Canada, and Mexico.

(With inputs from agencies.)