Ripple CTO Reacted to Donald Trump and Warned!

Former US president and Republican candidate in the 2024 presidential elections, Donald Trump, recently criticized US aid to Ukraine. In addition, he proposed a controversial economic plan during his visit to Capitol Hill. Accordingly, Trump proposed replacing the US income tax with increased tariffs. This suggestion caused criticism from Ripple Chief Technology Officer David Schwartz.

Trump’s Income Tax and Tariff proposal

Donald Trump voiced this idea in separate meetings with Republicans in the House of Representatives and the Senate. Thus, he aimed to unite the party ahead of the upcoming November elections. Representatives Thomas Massie and Marjorie Taylor Greene confirmed Trump’s proposal. Trump’s plan includes reducing the US income tax and making up for the lost revenue by increasing tariffs on imported goods. His latest proposal to replace the income tax with a customs duty aims to reduce the tax burden on American citizens. It also aims to shift this to foreign companies and governments.

Meanwhile, Trump called on US lawmakers to cut taxes on tips. Previously, during his term in office, Trump had aggressively used customs duty revenues reaching a high rate of 25% for products coming from China. While the last statement was praised by the public, some departments also expressed their concern. This proposal sparked valuable debate among lawmakers and economic experts. Internet users expressed concerns about possible negative effects on the US economy. If Trump’s income tax proposal becomes reality, it is possible that it could even lead to a decline in the US Dollar (USD).

Ripple CTO condemned Trump’s tax policy proposal!

An X user reacted to Trump’s offer. The user questioned what is the need for taxes if the government can print more money. Thereupon, Ripple CTO Schwartz made a harsh warning about the potential economic consequences. “They can just print money because taxes create a demand for money,” Schwartz said. “Without taxes, you can avoid paying for the government by not using dollars.” said. Moreover, Ripple CTO warned that without the demand created by taxes, the value of the US dollar would rapidly decline.

Ripple CTO said, “Without taxes, it is possible to avoid paying for the government by not using dollars. This causes the dollar to rapidly become worthless. Because no one wants it,” he said. Ripple CTO also elaborated on his comparison of the government to a technology company and the economy to its users. In this regard, Schwartz said:

Think of the government as a technology company and the economy as users. Even if you can’t make money from your users, you can survive for a while. But eventually you have to show that you can make money from your users, otherwise you will collapse like an overvalued house of cards.