Trump’s tariff expansion was the only major economic proposal offered during his State of the Union 

During his State of the Union address this Tuesday, Donald Trump called for tariffs to “substantially replace the modern day system of income tax” — the only major economic proposal Trump offered during his speech. 

Trump’s plan would amount to the largest tax increase on working Americans and the biggest tax cut for billionaires in HISTORY. His proposal would be a tax hike on the bottom 90% of Americans, lowering their after-tax incomes, while raising the incomes of the top 10%. American consumers are already bearing 95% of the costs of Trump’s tariffs, and companies across industries are raising costs again. 

In response, DNC Chair Ken Martin released the following statement: 

“Donald Trump took to the podium on Tuesday, not to talk about how he’s going to bring down skyrocketing costs, but to announce higher taxes on working families and even more tax breaks for billionaires. Americans have shelled out thousands of dollars each to cover the costs of Trump’s disastrous trade war, forcing them to decide whether to put food on the table, pay their rent, or forgo health care coverage. They are fed up with being left out to dry while Trump and his rich friends cash in on his presidency.”  

Trump’s policies have already devastated working people at a time when the price of household goods has skyrocketed. This proposal comes after Trump’s “One, Big Ugly Bill” already provided massive tax cuts to billionaires while cutting $1 trillion in Medicaid, gutting SNAP benefits for millions of Americans, and raising taxes on the poorest 40% of Americans. Trump’s “signature achievement” provided the largest wealth transfer in history, and is estimated to transfer $114 billion in tax cuts to those making over $1 million in the next year alone.