Trump claims that rates could “eliminate” taxes for most north -Americans, but experts argue that math does not add

President Donald Trump say rates It could deliver a financial fall for the North -Americans, erasing their income taxes.

“When cuted rates, many people’s income taxes will be substantially reduced, perhaps even completely eliminated,” Trump said in a social truth position On April 27. “The approach will focus on people who win less than $ 200,000 a year.”

This is a daring promise, especially considering that only 14.4% of North -American households won more than $ 200,000 a year in 2023, according to Bureau Census. data. In other words, if Trump’s vision is true, the vast majority of North -Americans would not pay the income tax.

But don’t celebrate yet. Although Trump is optimistic, experts say math simply do not add up.

Economists Erica York and Huaqun from the Tax Foundation were forceful, explaining in a response On April 28, “the individual income tax increases more than 27 times more revenue than the rates currently”, and “even eliminating income taxes for a taxpayer subset, such as those gaining $ 200,000 or less, would require significantly higher replacement income than tariffs.

They estimate that the rates Trump has imposed and scheduled from April 2025 would generate about $ 167 billion in new federal tax revenue in 2025, which cover less than 25% of the cost of eliminating income taxes for people gaining below $ 200,000.

Although Trump’s proposal faces serious doubts, politics changes are not the only route to reduce tax bills. Here are two powerful assets that everyday investors can use in their advantage.

Scott Galloway, Marketing Professor at the Stern School of Business at New York University Finger That if you try to create wealth, you have “the obligation to pay as much tax as possible”.

Your advice? Keep it simple: “Buy actions, never sell them, you lend.”

Galloway was broken down by an example: “You have $ 100 in Amazon shares. You need money to buy something. Instead of selling the shares and we say that it has increased by 50% … You have to make a capital gain of the capital and pay the capital gains in the long term (tax) on this $ 50 benefit. No, you only take on loan and let the shares continue to grow.”