'Unlikely to Occur': Fox Panel Rejects Trump's Bold Statements About Tariff Revenue

During Wednesdays broadcast, Fox News anchor Martha MacCallum asked a group of guests to weigh in on President Donald Trumps recent statement suggesting he could eliminate income tax.

MacCallum opened the conversation, saying, Trump suggested that soon, Americans might not have to pay taxes. Steve, he claims income tax could disappear because tariff revenue is so substantial. Whats your take?

Publisher and economist Steve Forbes responded, It sounds appealing, but the numbers dont support it. Federal income tax revenue is roughly $2.5 trillion, whereas tariffs generate only about $300 to $400 billion.

MacCallum then displayed the figures on the screen. Forbes continued, Theres a $2 trillion shortfall. Plus, 40% of households dont pay federal income tax. If tariffs hit 50, 60, or 70%, what happens to them? Theres a lot that would need to be figured out.

MacCallum agreed, adding, Indeed, the gap is significant. Trump often asks Scott Bessent how many trillions will come in because he believes its achievable. Marcus, whats your view?

CNBC analyst and entrepreneur Marcus Lemonis replied, Im not sure he genuinely believes its feasible. Reducing taxes is a common goal, but as Steve mentioned, $2.2 to $2.5 trillion in revenue cant be replaced by tariffs alone. Considering the current deficit, the numbers just dont add up. Simplifying the system is more practical than promising a tariff dividend, which is unlikely to ever materialize.

MacCallum asked, So people wont really receive a $2,000 tariff dividend?

Lemonis responded, Where would the money come from?

MacCallum noted, Trump points to past trade deals, particularly with South Korea and Japan, and argues the U.S. got a raw deal over decades.

Lemonis added, Consumers are more concerned with lower housing and food costs. While getting money back sounds good, reducing expenses directly would be more effective.

Author: Harper Simmons