Trump proposes eliminating personal income taxes. How would that work?
Anna Moneymaker/Getty Images
(NEW YORK) — In recent campaign speeches, former President Donald Trump has repeatedly floated an eye-catching idea: the elimination of individual income taxes.
The proposal follows a string of other tax cuts put forward by Trump, including the removal of taxes on car-loan payments, social security benefits and servers’ tips. But a potential elimination of personal income taxes for all Americans goes much further.
When podcast host Joe Rogan asked Trump last week whether he was serious about the new plan, Trump said, “Yeah, sure, why not?”
The U.S. would pay for the lost tax revenue with far-reaching tariffs, Trump said.
“We will not allow the enemy to come in and take our jobs and take our factories and take our workers and take our families, unless they pay a big price — and the big price is tariffs,” Trump added.
The individual income tax currently accounts for roughly half of the $5 trillion in revenue that the federal government brings in each year.
It is unclear whether Trump’s proposal would also include the elimination of payroll taxes and corporate income taxes. Those duties account for another 40% of U.S. tax revenue, according to the Tax Policy Center.
“Even in its smallest form, it would be a pretty substantial change from current policy,” Marc Goldwein, senior vice president and senior policy director at the Committee for a Responsible Federal Budget, told ABC News.
But he acknowledged that the details about how that proposal would actually work have been scarce. “We don’t have a full proposal,” Goldwein said.
In response to ABC News’ request for comment, the Trump campaign referenced the tax cuts enacted during his first term. But the campaign did not comment directly on his newer proposal of eliminating the individual income tax.
“President Trump passed the largest tax CUTS for working families in history and will make them permanent when he is back in the White House in addition to ending taxes on tips for service workers and ending taxes on Social Security for our seniors,” Karoline Leavitt, national press secretary for the Trump campaign, told ABC News.
It would be all but impossible to make up for the lost revenue with increased tariffs, experts told ABC News.
On the campaign trail, Trump has promised a sharp escalation of tariffs during his first term. He has proposed tariffs of between 60% and 100% on Chinese goods.
Envisioning a far-reaching policy, Trump has proposed a tax of between 10% and 20% on all imported products. Earlier this month, he told the audience at the Economic Club of Chicago that such a tariff could reach as high as 50%.
Last year, the U.S. imported about $3.8 trillion worth of goods, the U.S. Bureau of Economic Analysis found. To generate the same amount of revenue currently brought in by the individual income tax, a tariff would have needed to be set at about 70%, Alan Auerbach, a law professor at the University of California, Berkeley, who focuses on tax policy, told ABC News.
However, a tariff of such magnitude would significantly reduce U.S. trade, slashing the total amount of imported goods and, in turn, reducing tax revenue.
“It wouldn’t be feasible,” Auerbach said.
Erica York, a senior economist and research director at the Tax Foundation, echoed that view. “It’s mathematically impossible,” York said.
Replacing the individual income tax with tariffs would also shift a greater share of the tax burden onto low- and middle-income households, experts said.
The top 50% of earners accounted for nearly 98% of all federal income taxes in 2021, according to the Tax Foundation. The bottom 50%, in turn, made up about 2% of income tax payments.
Higher tariffs are widely expected to raise prices of consumer goods, since foreign producers typically pass the cost of higher taxes onto customers. As a result, the costs of higher tariffs would fall evenly across U.S. households, since all Americans purchase consumer goods.
In some cases, low- and middle-income earners would pay a higher proportion of the cost burden, since consumer spending often makes up a higher share of their overall budget than it does for their well-off counterparts, Goldwein said.
“Tariffs are at best a flat tax and more likely a regressive one,” Goldwein added.
Trump would have some latitude in setting and implementing tariffs, experts previously told ABC News.
But his proposal to eliminate the personal income tax would require support from both houses of Congress.
“Trump can’t just eliminate the individual income tax,” York said. But, she added, Trump may seek to negotiate tax cuts in 2025, when many of the provisions associated with his signature tax reform law are set to expire.
“Trump could possibly negotiate further tax cuts to be added to those,” York said. “But I don’t see a situation where Congress would align with this swap between the income tax and tariffs.”
(NEW YORK) — Dozens of people across the U.S. have contracted E. coli traced to ingredients in McDonald’s Quarter Pounders, the Centers for Disease Control and Prevention (CDC) said Tuesday.
As a result, McDonald’s announced it has proactively removed two ingredients from stores across two impacted regions, but the company’s leadership team has assured that a majority of other menu items are not impacted, according to the CDC investigation.
What to know about McDonald’s E. coli outbreak
McDonald’s says either fresh, slivered onions or beef patties used for the Quarter Pounder may be behind the outbreak.
If onions are found to be the source of the E. coli outbreak, it would be the first time onions have ever been a carrier for this particular strain of the bacteria, company spokespeople said on Wednesday.
The spokespeople also reiterated that onions used in the Quarter Pounders, as identified by CDC tracing data, came from suppliers that also test for E. coli.
McDonald’s uses multiple suppliers for the slivered onions in the area where the outbreak cluster occurred, but all of the product has been retrieved from stock and it will not be supplying more onions until the investigation is completed.
States impacted by McDonald’s Quarter Pounder E. coli outbreak
So far, one person has died and a total of 49 people from 10 states have fallen ill with a strain known as E. coli O157:H7, which causes a severe intestinal infection in humans.
The person who died was a resident of Mesa County, Colorado, in the western part of the state, according to the county health department.
Most of the cases have been in Colorado, which has 27 reported cases, and Nebraska, which has nine reported cases, according to the CDC.
The other states are Iowa, Kansas, Missouri, Montana, Oregon, Utah, Wisconsin and Wyoming.
Ten people have been hospitalized, including a child with complications from hemolytic uremic syndrome (HUS) — a disease that affects the kidneys.
Number of those sickened in outbreak expected to grow
The number of confirmed cases related to the McDonald’s E. coli outbreak could grow.
The CDC says the investigation is “fast-moving,” with new cases being reported on a rolling basis as the investigation connects people reported being ill and the specific strain of E. coli in this outbreak.
McDonald’s stopped selling the Quarter Pounders in the select states just recently, so there may be more cases that develop. The typical onset of symptoms is 3-4 days, and recently ill people may not be part of the current reporting as it usually takes 3-4 weeks to determine if a sick person is part of an outbreak.
The true number of sick people in this outbreak is likely much higher than the number reported, because many people recover without medical care and are not tested for E. coli.
Investigation into McDonald’s ingredients potentially responsible for illness
Every patient interviewed by the CDC said they ate at McDonald’s before falling ill and most said they ate Quarter Pounder hamburgers, specifically.
It’s not clear which ingredient is responsible for the illnesses, but CDC investigators are focused on two ingredients: fresh, slivered onions and fresh beef patties.
“Heat destroys things like bacteria and viruses but in certain cases, especially when you’re producing massive amounts of food — and you have products that are not going to undergo heat, for example, vegetables — that leads to an opportunity for contamination,” ABC News medical correspondent Dr. Darien Sutton explained.
McDonald’s told the CDC it has removed slivered onions and beef patties used for Quarter Pounder hamburgers from stores in the states where cases have been reported, the federal health agency said. As a result, the CDC said Quarter Pounders won’t be available for sale in some states.
In a statement on Tuesday evening, McDonald’s North America Chief Supply Chain Officer Cesar Piña said that the fast food chain believes the outbreak is linked to slivered onions “used in the Quarter Pounder and sourced by a single supplier that serves three distribution centers.”
“As a result, and in line with our safety protocols, all local restaurants have been instructed to remove this product from their supply and we have paused the distribution of all slivered onions in the impacted area,” the statement read, in part. “We will continue to work with the Centers for Disease Control and Prevention and are committed to providing timely updates as we restore our full menu.”
“The decision to do this is not one we take lightly, and it was made in close consultation with the CDC,” Joe Erlinger, President of McDonald’s USA, said in a statement. “It’s important to note that the majority of states and the majority of menu items are not affected.”
Slivered onions may be linked to strain of E. coli for 1st time
McDonald’s said it is actively working with the CDC, the U.S. Food and Drug Administration (FDA) and other health authorities as they investigate.
During the two-week period in which cases were reported, from Sept. 27 to Oct. 11, the fast food chain sells about 1 million Quarter Pounders, making tracing the outbreak complicated, according to company spokespeople.
Because contamination was not linked to a single restaurant, it likely means the outbreak was not caused by the preparation and handling of the food and was likely higher up the chain, the spokespeople said.
If beef patties are behind the contamination, it would mean restaurants failed to cook the food properly to the standard of 175F. However, the slivered onions topping, which are uncooked, are processed at a facility and then sent to McDonald’s.
The company spokespeople said if the slivered onions are identified as the culprit, it would be the first time onions would be a carrier for the O157:H7 strain of E. coli.
McDonald’s said they believe only Quarter Pounders are affected and that case numbers would be much higher if other products were associated with the outbreak.
Currently, one-fifth of McDonald’s stores are not selling Quarter Pounders. Local restaurants customers know if their location is not serving Quarter Pounders, otherwise the product is available, the spokespeople said.
What to know about E. coli symptoms, recovery
Although most E. coli bacteria are harmless and are part of a healthy intestinal tract, some strains of the bacteria can make people sick, according to the CDC.
E. coli symptoms often begin three to four days after ingesting the bacteria and include severe stomach cramps, diarrhea that may be bloody and vomiting.
Most people recover on their own within five to seven days, but some people may develop HUS and require hospitalization.
The CDC urges those who are experiencing severe E. coli symptoms and recently ate a McDonald’s Quarter Pounder to contact their health care provider immediately.
(NEW YORK) — Hurricane Francine made landfall early Wednesday evening in Louisiana, southwest of New Orleans, as a Category 2 storm. Francine has since weakened to a tropical depression as it brings heavy rain to the South.
Here’s how the news is developing:
What to expect next
Francine — which brought a record daily rainfall to New Orleans — is now pushing north, bringing heavy rain, gusty winds and potential tornadoes to the South.
Eight states across the South are under wind and flood alerts, from Louisiana to Missouri.
As Francine moves north, it is expected to slow down and stall. An additional 5 to 10 inches of rain is possible across the South, especially in Alabama, Tennessee, Mississippi and Georgia.
Over 390,000 without power in Louisiana
More than 390,000 customers are without power in Louisiana in the wake of Hurricane Francine. About 66,000 customers are waking up without power in Mississippi and 12,000 are in the dark in Alabama.
Francine weakens to tropical depression
Francine weakened to a tropical depression as it moved over south-central Mississippi Thursday morning.
Francine is now spreading heavy rain across Mississippi, Alabama and the Florida Panhandle.
A tornado watch is in effect for Florida and Alabama.
Heavy rains, ‘severe thunderstorms’ forecast as Francine weakens
The National Weather Service forecast heavy rains and thunderstorms across the southeast through Thursday as Tropical Storm Francine moves north from Louisiana into southern Mississippi.
The National Hurricane Center said Francine was around 20 miles northwest of New Orleans early Thursday, with maximum sustained winds of 50 mph. The tropical storm was moving northeast toward Mississippi at 14 mph.
Francine is expected to bring between 4 and 8 inches of storm rainfall to areas across southeastern Louisiana, Mississippi, far southern Alabama and the Florida Panhandle through Thursday, the NHC said.
“This rainfall could lead to considerable flash, urban and river flooding,” it added.
The NWS warned of “heavy rain and chances for severe thunderstorms” across the affected areas, as well as tornadoes “potentially impacting parts of Alabama and the Florida Panhandle along a slow-moving warm front.”
“The greatest threat for considerable flash flooding exists across parts of northern and central Alabama,” it added, noting the possibility of up to 10 inches of rain.
The NHC also warned of dangerous storm surges. Water could rise by 4 to 6 feet between the mouth of the Pearl River in Louisiana to Ocean Springs in Mississippi, as well as at Lake Pontchartrain.
Three- to 5-foot surges may occur from Ocean Springs, Mississippi to the state border with Alabama, between Morgan City and the mouth of the Mississippi River in Louisiana and at Lake Maurepas, the NHC said.
419,000 without power after Francine landfall
At least 419,942 people were without power early Thursday following the passage of Tropical Storm Francine, which made landfall as a Category 1 hurricane on Wednesday.
PowerOutage.us reported 392,440 people without power in Louisiana and 27,502 in Mississippi as of the early hours of Thursday morning.
Among those affected were 301,000 customers of the Entergy energy company, the firm said on its website. The most pronounced outages were in Louisiana, with the largest impact in coastal areas around New Orleans where Francine made landfall Wednesday.
Jefferson County (68,189), Orleans County (49,975), Lafourche County (36,701), Ascension County (27,038) and Terrebonne County (25,611) were the worst affected in Louisiana, Entergy said.
Francine weakens to tropical storm
After making landfall as a hurricane, Francine weakened to a tropical storm late Wednesday night.
All Hurricane Watches and Warnings have been canceled, but Tropical Storm Warnings continue for parts of Louisiana, Mississippi and Alabama.
The Flash Flood Warning remains in effect in metro New Orleans while heavy rains remain.
By Thursday morning, Francine will be over central Mississippi with heavy rain, gusty winds, and tornado risk extending into Alabama to the Florida panhandle.
The storm is moving northeast at 16 mph while sustaining maximum winds of 65 mph.
Flash Flood Warning issued for New Orleans
Thunderstorms across Louisiana are producing heavy rain across the state, according to the National Weather Service.
Flash Flood Warnings are in effect for “Northwestern Jefferson Parish, Southwestern Orleans, Northern St. Charles Parish and Southwestern St. John The Baptist Parish” until 11:45 PM local time, the NWS said Wednesday evening.
Between 5 to 7 inches of rain has already fallen in the areas, with an additional 2 to 3 inches expected, according to NWS.
Other areas in Louisiana that may experience flash flooding include Hahnville, Metairie, Avondale, Laplace, Marrero, Reserve, Harvey, Timberlane, Jefferson, Gretna, Harahan, Westwego, St. Rose, Destrehan, Ama, New Sarpy, Norco, Luling and Waggaman.
AT&T and T-Mobile report resolution of 911 outage in New Orleans
AT&T and T-Mobile say the issues customers in New Orleans had reported in reaching 911 services in some storm-impacted areas have been resolved.
Those customers who needed emergency services were told to call the 10-digit number instead — 504 671-3600 — according to the NOLA Ready Emergency Alert System.
Francine continues to bring ‘life-threatening’ storm surge
Francine continues to bring life-threatening storm surges and hurricane conditions to southern Louisiana. Heavy rain and gusty winds will stick around while the Category 1 storm is expected to weaken Wednesday evening.
It’s currently moving southeast of Morgan City with maximum sustained winds of 85 mph.
Metro New Orleans is under a Flash Flood Warning and power went out in Slidell, Louisiana.
Causeway Bridge closes to traffic
The famed Causeway Bridge over Lake Pontchartrain in southeastern Louisiana has been closed to traffic due to “thunderstorms, high winds, crosswinds [and] poor visibility,” Causeway Police said.
Francine weakens to Category 1 storm
Francine has weakened to a Category 1 hurricane post-landfall, but continues to bring life-threatening storm surge and hurricane conditions to southern Louisiana.
A peak gust of 97 mph was reported at a weather station in Dulac.
FEMA on storm dangers
As residents in Louisiana hunker down due to Francine, Keith Turi, the associate administrator for the Federal Emergency Management Association, warned of potential hazards in the wake of the storm.
“What many people don’t know is that some of the most dangerous times are those hours right after the storm passes, when you’ve got high floodwaters or power lines down or even operating a generator, making sure you’re doing that safely and keeping it away from your home,” Turi told ABC News Live’s Kyra Phillips.
Turi said the agency has been coordinating with state and local officials for several days as Francine approached and will be prepared to conduct damage assessments on Thursday.
Francine makes landfall as Category 2 storm
Francine has made landfall as a Category 2 hurricane in southern Louisiana with 100 mph winds.
Landfall was about 30 miles south-southwest of Morgan City, in Terrebonne Parish.
Francine strengthens to Category 2
Francine has strengthened to a Category 2 hurricane with 100 mph winds as its eye approaches the Louisiana coast.
Life-threatening storm surge and hurricane conditions are moving onto shore.
Hurricane Francine’s eyewall is nearing the Louisiana coast, bringing hurricane-force winds close to shore.
Francine is now located 115 miles southwest of New Orleans and is moving northeast at 17 mph.
Some voluntary evacuations were issued in Terrebonne Parish, along the Louisiana coastline southwest of New Orleans, Parish President Jason Bergeron told ABC News.
“We’re starting to get some of the first bands coming through. And so we’re just getting everybody hunkered down and getting people to get to safety,” he said. “We opened our shelter last night and then we issued the curfew at 8 a.m. this morning, going to 8 a.m. tomorrow morning.”
Latest forecast
Tropical storm conditions have reached the Louisiana coastline, and life-threatening storm surge and hurricane-force winds are expected to begin in the next few hours leading up to Hurricane Francine’s landfall.
130PM: These bands will continue through the evening hours and into the overnight. Locally heavy rainfall and tornadoes will be possible inside these bands along with the damaging winds from the hurricane. pic.twitter.com/o8hu1Zng5A
A hurricane watch is in effect in New Orleans, where the worst impacts will be Wednesday afternoon through Wednesday night.
A tornado watch has been issued for parts of Mississippi and Louisiana, including New Orleans.
Storm surge will worsen throughout the day. Up to 10 feet of storm surge is possible in parts of Louisiana; up to 5 feet is possible in the New Orleans area.
Flash flooding is a major threat for Louisiana and Mississippi.
Conditions across Louisiana will start to improve overnight as Francine weakens and moves north into Mississippi.
Francine will rapidly weaken after landfall and become a tropical storm by Thursday, but it’ll still bring heavy rain to the South.
Flash flooding will remain a threat through the end of the week as Francine moves north into Tennessee, Kentucky and Missouri.
The threat for isolated tornadoes will continue through Thursday morning, especially in Alabama and the Florida Panhandle.
-ABC News’ Melissa Griffin
Conditions deteriorating in southern Louisiana
Conditions are deteriorating in southern Louisiana as Hurricane Francine gets closer to landfall.
The storm, located 120 miles southwest of Morgan City, Louisiana, is moving northeast at 13 mph.
Rain bands are moving on shore and the dangerous winds are closing in.
-ABC News’ Melissa Griffin
‘The time to evacuate has now passed’
With hours to go until Hurricane Francine makes landfall in Louisiana, “the time to evacuate has now passed,” Jacques Thibodeau, the director of the Governor’s Office of Homeland Security and Emergency Preparedness, said at a news conference.
“It is now time to go down and hunker down,” he said. “We are no longer in the, ‘Prepare for a hurricane’ — we are now in the, ‘Respond to a hurricane.'”
The White House has approved an emergency declaration for the state. The Louisiana National Guard expects to have 2,400 guardsmen ready for the storm, along with 58 boats, 101 high water vehicles and 61 aircrafts, officials said.
Louisiana Gov. Jeff Landry said he’s been in contact with the Federal Emergency Management Agency and the Army Corps of Engineers, and said he’s fully confident in all state and federal agencies working together before, during and after the hurricane.
Landry also encouraged residents to “take advantage of the power that you have currently and make sure that you charge all of your devices.”
-ABC News’ Alexandra Faul
New Orleans residents should start sheltering in place
Residents in New Orleans should stay off the roads beginning at noon ET and remain sheltered in place until Thursday morning, Mayor LaToya Cantrell said.
“Conditions will worsen throughout the day—stay safe!” she tweeted.
Hurricane Francine is expected to make landfall along the Louisiana coast this evening as a Category 1 storm.
By 11 AM, everyone in New Orleans should stay off the roads and shelter in place until tomorrow morning.
Francine is churning north as a Category 1 hurricane with 90 mph winds.
Landfall is forecast Wednesday afternoon or early evening as a Category 1 hurricane near Houma, Louisiana.
Life-threatening storm surge, flash flooding and hurricane-force winds are bearing down on Louisiana.
The storm surge could reach 10 feet along the Louisiana coast and wind gusts could hit 70 mph in New Orleans.
“Ensure you are in a safe location before the onset of strong winds or possible flooding,” the National Hurricane Center warned.
By Thursday morning, Francine will be bringing rain and gusty winds to Mississippi, and potential tornadoes to Alabama and the Florida Panhandle.
Throughout the day Thursday, the heavy rain and tornado threat will move into northern Alabama, Mississippi and Tennessee. Flash flooding is possible near Memphis and Nashville.
-ABC News’ Max Golembo
Weather warnings for Gulf Coast states
A raft of warnings was issued for cities in Louisiana, Mississippi and Alabama ahead of Hurricane Francine’s expected landfall on Wednesday afternoon.
A hurricane watch was issued for New Orleans, with hurricane warnings for Morgan City and Houma on Louisiana’s Gulf Coast.
Tropical storm warnings are in place further east, covering cities including Biloxi, Mississippi, and Mobile, Alabama.
Storm surge warnings were announced for both Biloxi — where water may rise up to 5 feet — and Mobile, where water levels may rise by up to 4 feet.
Francine is expected to make landfall as either a high-end Category 1 or low-end Category 2 hurricane, with winds between 90 and 100 mph, the National Hurricane Center said. The Category 2 classification begins with winds of 96 mph.
Landfall may bring tornadoes in areas around New Orleans, Biloxi, Mobile and Pensacola, Florida.
Heavy rain may cause flash flooding from New Orleans all the way up to Jackson, Mississippi through to Wednesday night. As the storm moves into Mississippi on Thursday, it is forecast to produce flash flooding and gusty winds.
Francine is expected to stall through Thursday night into Friday morning, bringing heavy rain to Memphis, Nashville and Paducah, Kentucky.
Francine 295 miles from Louisiana coast
Hurricane Francine is expected to make landfall southwest of New Orleans as a Category 1 hurricane on Wednesday afternoon.
As of early Wednesday, Francine was 295 miles southwest of Morgan City, Louisiana, heading northeast at 10 mph.
Data collected by Air Force Reserve Hurricane Hunter aircraft indicated that the storm strengthened in the early hours of Wednesday, with maximum sustained winds close to 85 mph — up from 75 mph on Tuesday night.
New Orleans under Hurricane Watch
Emergency officials in New Orleans, Louisiana, warned residents on Tuesday that they should be prepared to shelter in place as Hurricane Francine approached landfall.
A Tropical Storm Warning and Hurricane Watch were issued for areas along the southern Louisiana coast, including New Orleans. A Flood Watch was also issued in Orleans Parish through Thursday morning, the city said.
Mayor LaToya Cantrell signed an emergency proclamation.
“The storm track has shifted more towards the east, which has the potential to worsen impacts for the city, but the storm remains disorganized,” the city said in a statement.
