Trump declares new US tax organization

(MENAFN) President-elect Donald Trump has unveiled plans to establish an "External Revenue Service" (ERS) to collect tariffs, duties, and revenue from foreign imports. This move reflects Trump’s campaign promise to generate government income through tariffs, akin to the pre-income tax era before 1913.

In a post on his Truth Social platform, Trump stated that the new agency would ensure foreign entities pay their "fair share" by charging them for trade with the US. He emphasized that weak trade agreements have allowed the global economy to prosper while the US has shouldered the tax burden.

The ERS will serve as a counterpart to the Internal Revenue Service (IRS), which has been in operation since 1862. Trump’s proposal suggests that the agency could be officially launched on January 20, the day he is set to take office. However, for the agency to become permanent and receive funding, congressional approval is necessary.

Currently, US Customs and Border Protection is responsible for collecting tariff revenue, but Trump’s plan seeks to shift this duty to the new agency. His adviser, Steven Bannon, echoed the idea that tariffs could replace traditional taxes, emphasizing that America should capitalize on its robust market to charge fees for access, including investment opportunities.

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