As for government revenues, the primary source is tax collection, with the majority coming from individuals and families. Individual taxes represented 8.4% of GDP in 2024, while corporate taxes were 1.8%, according to the Congressional Budget Office (CBO).
Don't think me as a big fan of taxes. Ultimately it's the consumer who has to pay the price. However when I compare US's with India's tax revenue generated in the last years, it seems a lot opposite.
1.) India's corporate tax is not declining, 2.) the individual income tax is paid by only 2.2% of the total population.
Anyways...Trump has come up with a corporate tax but by another name.
The spike in tariffs is obviously a huge change that is generating a lot of cash for the Treasury. The U.S. collected $162 billion in revenue from tariffs in the calendar year through September 10, according to the Bipartisan Policy Center.
And....
The question is where the money is coming from. In other words, are tariffs more of a corporate tax or a consumer tax?
Currently, the answer seems to be the latter. The second-quarter U.S. corporate earnings season indicated that many, though not all companies, are passing a significant portion of the tariffs on to their customers in the form of higher prices.
So, basically it's a stealth corporate tax, a good plan by Trump.