President-elect Donald Trump announced his intention to create an External Revenue Service (ERS) upon entering the White House. The ERS will be tasked with collecting tariffs, duties, and revenue from foreign sources, a move aimed at addressing Trump's belief that current trade agreements have disproportionately benefited other countries at the expense of the United States. The proposal has sparked debate, with some questioning its practicality and others welcoming its potential to shift the tax burden away from income taxes.
President-elect Donald Trump announced on Tuesday his intention to establish an External Revenue Service (ERS) upon his return to the White House. According to Trump, the new agency will be responsible for collecting tariffs, duties, and all revenue generated from foreign sources. He criticized the current reliance on the Internal Revenue Service (IRS) and argued that trade agreements have primarily benefited the world economy at the expense of American prosperity.
'For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS). Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves,' Trump wrote on Truth Social. 'I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources.'The ERS is slated to be operational by January 20th, aiming to 'begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,' Trump stated. He has previously threatened to impose higher tariffs on countries that do not comply with his stringent immigration policies, singling out nations that refuse to accept deported illegal migrants. Trump's campaign promises included overhauling the current tax structure, proposing the elimination of taxes on tips, overtime, and Social Security, and even exploring the complete abolition of federal income tax, citing the revenue generation potential of his tariff policy.Currently, tariff collection falls under the purview of US Customs and Border Protection (CBP), a component of the Department of Homeland Security. The establishment of a separate ERS department would theoretically necessitate congressional approval, although Trump could attempt to integrate the department within an existing agency. However, Bryan Riley from the National Taxpayers Union questioned the practicality of the proposal, pointing out that the federal government already collects duties from US importers. 'It does not collect duty revenue from foreign sources, so it is not clear what the point of a new External Revenue Service would be,' Riley stated to The Post. 'A better priority would be to improve the operation of the Internal Revenue Service to better serve US taxpayers.' Conversely, economist EJ Antoni of the Heritage Foundation expressed enthusiasm for the idea, stating, 'Anything that gets us away from income taxes and towards tariffs is a great idea.' Antoni believes the ERS would likely emerge through the 'transformation' of a current agency into one that 'would better serve' the American people.
DONALD TRUMP EXTERNAL REVENUE SERVICE TARIFFS DUTIES TRADE AGREEMENTS INTERNAL REVENUE SERVICE TAXATION US ECONOMY
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