Grant Cardone recently asked a question that many people are considering – if the government can print money, why do we need taxes? His tweet came during ongoing debates about how taxes are used, who benefits from tax cuts and whether the current system is helping regular Americans.
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In his tweet, Cardone voiced his frustration with the U.S. tax system. He even threw out the idea of making taxes zero, referencing Donald Trump’s proposals. Cardone’s point was that Americans are overtaxed and much of the money we give the government is wasted. He highlighted that beyond regular income taxes, we face taxes when we spend, invest, gift money and even die – all while the government continues printing more cash.
Cardone's argument echoes some of the broader frustrations shared by others in the financial world. People wonder why we need to keep giving a large chunk of our hard-earned income when, seemingly, the government can just hit “print” whenever it wants.
This concept relates to remarks made recently by President-elect Donald Trump regarding eliminating federal income taxes and replacing them with tariffs. Trump supposedly wants to shift the tax burden to goods created in other countries. He suggests that a 10% tariff on all imports or a 60% tariff on Chinese imports could help fund the government instead of taxing regular Americans’ income.
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But experts say that while tariffs could bring in some money, it wouldn’t be enough to replace income taxes. Also, tariffs tend to increase prices for shoppers, which doesn’t help people in the way they might hope.
According to estimates from the Tax Foundation, a universal tariff of 10% would generate $2 trillion over 10 years, while a tariff of 20% might generate $3.3 trillion. However, that’s still far less than the current revenue from income taxes, which means the government would either need to cut major expenses, like health care or Social Security or go into debt. Economists warn that this shift could hurt economic growth, cause job losses and worsen income inequality. Bernie Sanders went as far as calling it “insane economics.”
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The heart of Cardone's argument is that taxation doesn't make sense when the government has the power to print money whenever it needs it. Critics argue that taxes aren’t just about funding the government but also about managing inflation and keeping the currency stable.
Why Printing Money is Really Bad
Printing money might sound like an easy solution, but it would be harmful. When too much money is printed, it makes the value of the money go down, which means prices for things go up. People cannot afford necessities like food or rent if inflation spirals out of control because everything becomes expensive. It can also hurt savings because the money people save is worth less. Eventually, printing too much money can lead to an economic crisis where no one trusts the currency anymore and it loses almost all of its value.
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