Trump Nominee Advocates for New Tariff-Based Revenue Approach

On Monday, President Donald Trump’s nominee for Commerce Secretary, Howard Lutnick, unveiled a proposal to reintroduce a tariff-focused system for funding the federal government, which he referred to as the “External Revenue Service.” Lutnick announced the initiative at a rally in Washington following Trump’s inauguration, calling it a cornerstone of the administration’s plan to restore American economic greatness.

Lutnick highlighted the historical precedent for relying on tariffs rather than income taxes, drawing inspiration from President William McKinley’s policies. McKinley, known for his strong support of tariffs, believed they were a dual tool to protect domestic industries from foreign competition and provide government revenue without directly taxing American workers.

“Last week, [President Trump] announced that we are going to return America to greatness by creating—today is its birthday—the External Revenue Service,” Lutnick said, emphasizing the shift away from income taxation in favor of tariffs on imports.

The nominee argued that the U.S. had flourished under a tariff-based system, suggesting it could again thrive by protecting American industries and workers. Lutnick also connected the tariff revenue to funding entitlement programs, ensuring financial stability for essential services.

“So if you are always wondering if some bureaucrat is going to cut your benefits, not under Donald Trump. It means foreign companies are going to pay if they want to sell products to the wealthiest country on earth,” he said, promoting the idea as a win for both American workers and consumers.

In a related announcement, President Trump signaled his intent to restore the name Mount McKinley to North America’s tallest mountain, reversing the 2015 decision by the Obama administration to rename it Mount Denali. Originally known as Mount McKinley after a prospector’s designation in 1896, the mountain was officially named in McKinley’s honor in 1917. The Obama-era change recognized its traditional Koyukon Athabaskan name, “Denali,” meaning “The High One” or “The Tall One.” Trump’s decision aligns with his admiration for McKinley’s tariff policies and broader efforts to honor historical American figures.

Lutnick concluded his remarks by stressing the importance of economic policies that prioritize American workers and industries. He argued that tariffs not only protect jobs but also ensure a stable funding source for critical programs without increasing the financial burden on U.S. citizens.

This policy approach reflects the Trump administration’s broader goals of reviving traditional American values and economic practices while reducing dependency on income taxes to sustain government operations.

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