In a recent episode of the Joe Rogan Experience, former President Trump expressed his serious intent to eliminate the federal income tax in the United States. Instead, he proposed replacing the revenue source with tariffs on imports. Drawing inspiration from former US President William McKinley’s successful tariff policies in the 1890s, Trump argued that similar measures could be effective in funding the government today. He even mentioned that the tariffs generated such massive revenue that officials struggled to allocate the funds appropriately.
Critics of this proposal have raised concerns about the potential hidden costs of imposing tariffs, which could manifest as increased prices on goods. However, Trump maintains that tariffs can stimulate the demand for the dollar, safeguard domestic workers, and enhance the competitiveness of US exports.
In addition to his stance on tariffs, Trump has put forward a radical idea regarding the national debt. During a conversation with Maria Bartiromo on Fox News, he suggested that Bitcoin (BTC) could be utilized to alleviate the staggering $35 trillion debt. Trump even playfully mentioned the possibility of “Handing them a little Bitcoin” to wipe away the debt.
Asset manager Bryan Courchesne believes that establishing a Bitcoin strategic reserve for the US government, while challenging, is not impossible. He proposed that the Department of Justice could transfer the approximately 200,000 BTC seized through various law enforcement actions to the United States Treasury. This would allow for the accumulation of Bitcoin as a strategic reserve asset. However, Courchesne acknowledged that bureaucratic red tape could pose a significant obstacle to the establishment of such a reserve.
Interestingly, Trump is not the only presidential candidate to consider the idea of a Bitcoin strategic reserve. Former independent candidate Robert F. Kennedy Jr. also advocated for Bitcoin as a means to protect the US dollar earlier in 2024, before ultimately withdrawing from the race.