Credited from: HUFFPOST
Former President Donald Trump sparked widespread ridicule after announcing a new governmental initiative intended to establish the “External Revenue Service” (ERS), which he claims would be responsible for collecting duties and tariffs from foreign nations. His proposal comes amidst a backdrop of ongoing debates about taxation and trade practices in the U.S. In a Tuesday post on Truth Social, Trump expressed that this new agency would charge those benefiting from U.S. trade, stating, “They will start paying, FINALLY, their fair share.” He emphasized that implementation would begin on his inauguration day, January 20, 2025.
The proposal has attracted considerable skepticism, as critics pointed out that the tasks Trump wants to assign to the ERS—a revenue collection agency for tariffs and other duties—are already the responsibility of the U.S. Customs and Border Protection. This agency has been operational since the inception of the U.S. government in 1789, and functions to levy tariffs at ports of entry on imported goods. The lack of awareness of existing government structures led to remarks from Senator Ron Wyden, who called it both “silly rebranding” and a potential “multi-trillion-dollar tax hike” aimed at American families.
Critics have seized upon Trump's long-standing misconception that tariffs are primarily paid by foreign nations. Economists clarify that tariffs are actually paid by American importers, who subsequently pass these costs on to consumers, thus burdening the middle and lower classes disproportionately. Douglas Holtz-Eakin, economist and former advisor, criticized Trump's approach, calling it “unrealistic to fund the government with tariffs” and stating, “He continues to mislead the American people about who pays these tariffs.” This sentiment was echoed across social platforms, where many mocked Trump for proposing a system that has been in place for over 200 years.
Trump's communications did not clarify why a new agency is necessary, likely recognizing that any establishment of the ERS would require congressional approval, a process that can be complex and time-consuming. In essence, his proposal draws attention not only to his ambitious plans for a new revenue service but also raises questions about the administration's overall grasp of existing governmental operations.
As the political landscape heats up ahead of the 2024 elections, Trump's proclamation has reinvigorated conversations regarding tariffs and taxes. Critics warn that if such a proposal were to replace traditional tax structures, it may shift the financial burdens from wealthy Americans to working families who rely on imported goods. With negotiations on trade and taxation becoming central themes for the upcoming campaign, Trump’s misstep may become a focal point for opponents working to challenge his grasp of economic and government functions.
This ongoing discussion about Trump's proposed External Revenue Service reflects deeper issues in public administration and fiscal responsibility, showcasing the challenges that come with communicating complex tax and trade policies in a rapidly changing political environment. For more details, check out the full articles from [HuffPost](https://www.huffpost.com/entry/trump-external-revenue-service-ridiculed_n_6786be6be4b0d06aefb78e0e) and [HuffPost](https://www.huffpost.com/entry/trump-tariffs-external-revenue-service_n_6786c085e4b0a673540f81d8).