Understanding Taxation Changes

What is one potential benefit of eliminating taxes on tips for workers?

• Keeping all earned tips

• Reduced working hours

• Higher base wages

• Increased job opportunities

What historical period does Trump reference to support the idea of using tariffs instead of income taxes?

• The 2000s

• The 1920s

• The 1890s

• The 1950s

What is a potential economic consequence of significantly increasing tariffs?

• Lower consumer prices

• Trade wars with other countries

• Increased government revenue

• Higher employment rates

How might employers respond to the elimination of income taxes in terms of compensation?

• Increase base wages

• Offer more benefits or bonuses

• Hire more employees

• Reduce working hours

What challenge is associated with funding essential services if income taxes are eliminated?

• Difficulty in maintaining infrastructure

• Reduction in military spending

• Increased reliance on foreign aid

• Challenges in funding Social Security and Medicare