He's toying with the biggest tax cut of all: no income taxes. I think tariffs are the most beautiful word; I think they're beautiful. It's going to make us rich. Did you just float out the idea of getting rid of income taxes and replacing it

with tariffs? Well, okay, were we serious about that? Yeah, sure, why not? This would be the biggest transfer of wealth in the history of this country. Can you guarantee American families won't pay more? What's up, you guys? It's Graham here, and I hope you're prepared for what's

coming in 2025. In just a very short amount of time, we're about to see some significant changes: the introduction of Doge, the Department of Government Efficiency, a first-ever crypto-friendly SEC chairman, expanded business deregulation, and the one everyone is worried about: tariffs. That's

right. This was previously advertised as a way to potentially get rid of the federal income tax, meaning you would owe no tax to the federal government whatsoever, and everything our country needs to run would be paid for by the goods we already make. So, is this a gen

concept that's about to make us a ton of money, or is it a horrible idea that will crash the stock markets and send us into the next Great Depression? We'll give it all the misinformation floating around on the internet. I thought that we should break down the actual implications of

imposing a tariff; whether or not this will result in higher prices for everyday Americans; if it's even possible to remove the income tax altogether; and then, finally, what you could do about this and what this means for you watching. Because I've got to say what I

I found that was pretty shocking. Although, really quick, before we go into that, if you enjoy videos like this where I just break down the facts, it would mean the world to me if you hit the like button or subscribed if you haven't done that already. That's all I ask, and as a thank

you for doing that, here's a picture of a ladybug. So thanks so much, and also a big thank you to Incog for sponsoring today's video, but more on that later. All right, so first, in order to understand the impact this could have throughout our economy, we need to answer the

question, "What is a tariff?" Well, on the most basic level, think of this like an additional tax that's collected anytime you import goods from one country to another. The theory is that if imported goods become more expensive, it'll encourage people to buy from their home

country instead, thereby helping out the local economy. Or, if they don't do that, then at least the country gets to collect a little tax revenue in the process. And if that sounds confusing, let's take the example of toilet paper. In this case, imagine that Mexico produces and imports toilet paper to the

United States at an average of $1 a roll. Well, this competes with American-made toilet paper at $2 a roll, which, in comparison, seems a bit inferior. So, in an effort to level the playing field, a 100% tariff is placed on Mexican imports of toilet

paper, and all of a sudden both items now cost the exact same when sold in the US, thereby increasing revenues for the government, driving more demand for locally made goods, and making American products slightly more appealing. Now, in terms of who pays the tariff, despite

What you might think: it's not the other country who pays the tax, but instead the person or company who imports it to the United States. So if Apple is selling the new Vision Pro, made in Mexico, and they bring it into the United States, Apple is the company

responsible for paying the additional tax, not the country who makes the item. And this is going to be really important later in the video. Anyway, obviously that's a pretty extreme example, just to illustrate a point, but apply this thinking towards any import—like clothing, cars, batteries, you name it—and

all of a sudden, any additional tax theoretically encourages people to buy locally sourced items instead, when they're competitively priced. But that's if everything goes right. Look, the reality is there is no such thing as free money; it has to come from somewhere,

even if, on the surface, it looks like someone else is paying for it. But in terms of who pays the tariff, here's where things get very interesting. Ideally, if everything goes according to plan, tariffs could help in four main ways: First, they protect US companies

from foreign competition. If imported goods are more expensive, local companies have a chance to compete with their own products. This leads to, second, increased job growth. When local companies are able to compete, they'll hire more workers, leading to a higher employment rate. That leads to, third, higher

government revenue. The more jobs hired locally, the more taxes the government can collect. And even if more jobs are not created, the government still makes more money by the imposed tariffs. That could result in, fourth, favorable trade negotiations. Perhaps other countries don't want tariffs on their products.

because that'll impact their own economy, so they negotiate to buy more American-made products, resulting in fairer global trade around the world. Or everything goes absolutely to... for example, we could see higher prices for everybody. The reality is most overhead costs get passed onto you as

the consumer in the form of higher prices, or even worse, it could result in retaliation from other countries. Who's to say other countries won't just put a tariff on US products? That could result in a global economic decline. This creates a downward cycle

where people cut back, spend less, make less, and our economy shrinks—all because we're playing a game of chicken to see which country will blink first. And fourth, less competition could lead to less innovation. The fact is, there needs to be a reason to improve to

eventually make a superior product, and if the reasons aren't there, we usually don't get it. Now, keep in mind there are plenty of tariffs currently in effect, but generally the result is a bit mixed at best. Like, take a look at Trump's 10%

tariff on more than $200 billion worth of Chinese goods back in 2018. Even though we did collect higher taxes on imports, several countries retaliated by raising tariffs on US products—basically, an eye for an eye. And the end result for everyday Americans, according to CNBC,

was the largest tax increase in decades. Although, in terms of Trump's upcoming tariff plan and what this means for all of you watching, you're going to want to hear this. However, before we go into that, just as tariffs can disrupt trade and increase overhead, a data breach can

severely impact your own finances, with some pretty severe long-term consequences. And if you think it can't happen to you, think again. More than likely, your personal data is already floating around on the internet, in the hands of data brokers, third parties,

spammers, or other people who might want to target you. And it's an absolute epidemic. The reality is, anytime you sign up for a product or service, give out your information online, or even make a purchase, that data is passed around and sold, including your name, phone number,

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Taken down. You can get 60% off an annual plan when you go to Incognito. We have a risk-free 30-day money-back guarantee. If you're not entirely satisfied, you get a full refund. Again, the link is down below in the

description, or go to Incognito. Thank you so much, and now let's get back to the video. All right, now in terms of Trump's latest tariff plan and the impact it's about to have throughout our economy, and with you, here's what's being

proposed. On November 25th, it was announced that he would enact an executive order that would create an additional 10% tariff on Chinese imports, as well as an additional 25% tariff on Mexican and Canadian imports. These tariffs would continue until China, Mexico, and Canada

address the movement of legal substances and undocumented immigrants across the US border. The impacts could be pretty significant. As of now, we import more than $400 billion worth of products from China, $400 billion worth from Canada, and $500 billion from Mexico, meaning there's $1.3 trillion in

goods that pretty soon could start to cost more money than they did before, if it goes that far. After all, in response to these announcements, Canada and Mexico said that they would retaliate with tariffs on US products if tariffs on their US exports were imposed. And as you

would expect, China reflected the same sentiment shortly after. Even Mexico's president said that neither threats nor tariffs will solve the issue of migration or drug consumption. But here we are. Now, in terms of whether or not Trump has the authority to enact these measures, the answer is it really depends.

In 2018, for instance, he imposed roughly $80 billion worth of tariffs using, and I quote, sections 201, 301 of the Trade Act of 1974, along with section 232 of the Trade Expansion Act of 1962. Then in

2019, he did the same to Mexico using the Emergency Economic Powers Act of 1977, which allows a president to enact a deterrent in light of an unusual and extraordinary threat to the national security, foreign policy, or economy of the United States. Basically, if history

is any indication, Trump can move forward with tariffs using rather specific laws. It's probably not going to be the economic boom that some people think it would be, and it's even said that these measures could hit industrial sectors hard, adding approximately $272 billion a

year to tax burdens, raise goods prices, lift interest rates, and sap strength in an already vulnerable housing sector. To make matters worse, in terms of existing U.S. tariffs in 2022, they generated $80 billion for the U.S. government, which was enough to keep the country running for

15 days. Yeah, all of that for basically just two weeks of spending. This suggests that it's pretty much impossible to fund the government on tariffs alone, and any thinking of eliminating the federal income tax is just wishful thinking. Not to mention, past history shows that tariffs

have some pretty serious consequences. For instance, the most notable occurred back in the 1930s, famously quoted in the movie *Ferris Bueller's Day Off*, known as the Smoot-Hawley Tariff Act. Back then, the United States was suffering from the Great Depression, with unemployment being

Very high in business is suffering, so in a way to help strengthen the economy, tariffs were placed on foreign goods to help the livelihood of American businesses and make their products more competitive. But in actuality, the opposite happened. Instead of American products booming, other countries just

got upset and raised their own taxes on US products. This meant that many businesses sold less, they downsized, and a lot of them went out of business. On top of that, world trade diminished by a lot because a lot of countries refused to do business with anyone outside of

their borders, and the entire world suffered. Finally, the nail in the coffin here was that, despite trying to raise up the US economy, the only thing that went higher were prices. This meant that people wound up paying a lot more for the same materials than they did

before. And now, almost 100 years later, this was credited as making the Great Depression worse. However, keep in mind that tariffs are still implemented to this day, and there's a lot of them, depending on where you look. For instance, there are 256 pages of items from China

that are subject to a tariff; nearly every category has some level of tariff that multiple importers must comply with, and most people have no idea how much of that cost gets passed on to you as the consumer. So why does Trump want tariffs in the first place if there's so much

information out there that says it's bad for the consumer? Unfortunately, the answer isn't as easy as just saying everyone is wrong, the data is bad, and this time is different. Instead, the truth probably lies somewhere in the fact that our upcoming administration believes that our reliance on China is a bad

Things both politically and economically, and he could threaten tariffs as a way to negotiate a more favorable trade deal without actually going forward with them. On top of that, we have to acknowledge that other countries sometimes have the ability to produce items better and more efficiently than the United States.

It's why avocados are frequently sourced from Mexico, thanks to their soil and climate, than, let's say, Finland, where it's way too cold. The same thing applies to coffee beans; there's a very valid reason why the majority of coffee is sourced throughout the equator versus

Antarctica. It's for these reasons that, for a variety of exports, it makes sense to produce what you have an abundance of. And unfortunately, global trade wars really discourage that. So, in terms of what's realistically going to happen and whether or not this actually passes,

here's what I think personally: I believe tariffs could be useful in limited situations for protecting certain U.S. products, but on a broad scale, it seems like every piece of data suggests that they're a bad idea. They wind up raising prices and having a negative impact on

all income groups, and it's best just to let the free market do its thing. After all, independent research groups estimate that the proposed tariffs would end up costing the average American family an extra $2,000 to $4,000 a year. Now, even though you might think that Congress has

to agree for these tariffs to go through, the reality is that there are avenues Trump could pursue if he wanted them to go forward. But I tend to think that this is more of a negotiation tactic, and if we do see increased tariffs, it's probably not going to be as severe as he

Initially, it proposes that even with tariffs, funding the government for 15 days barely avoids a debt default.  Instead, it's more impactful to address wasteful government spending.  Consider this: since 2003, the government has spent

$2.7 trillion in payment errors. They provided $516 billion in 2024 appropriations to programs that have expired; almost two-thirds of those expired a decade ago. 88% of federal office buildings are unoccupied; the cost of

making a penny exceeds the value of the actual penny. If government spending were controlled, tariffs wouldn't be necessary from a financial perspective. Sure, they could be used for political negotiations or to negotiate

a fairer agreement in worldwide trade, but financially, government spending should be the top priority to reduce wastefully. But then again, what do I know? I'm just a guy making videos in a half-converted garage; I'm totally

clueless. If I missed anything, please let me know in the comments below. So, thanks so much, and again, a big thank you to Incog for sponsoring this video.  Their link is below in the description; protect your data, make sure it's safe. Thank you so much, and until

"No More Income Taxes!" - The 10% Trump Tariff Explained

As a 30 year old real estate agent and investor who started working in real estate shortly after turning 18, with over $120,000,000 in residential real estate sales since 2008, I've created this channel to share my successes, failures, and experiences in the real estate industry and to support others who are thinking of getting into the business. Oh, and I'm also obsessed with cars. A lot. So expect to see some cars uploaded to my channel. A lot. And Subscribe. Because all the cool kids are doing it.  

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