Epic Real Estate Investing - April 2: The Day Trump Kills The IRS? ( ERS 'Liberation Day' Explained) | 1457

Episode Date: April 1, 2025

This episode unpacks the rumors and facts surrounding the potential abolition of the IRS and the introduction of the External Revenue Service (ERS) by the Trump administration. It clarifies misconceptions about how tariffs work, their impact on everyday costs, the limitations of replacing income taxes with tariffs, and the potential economic implications. Viewers are urged to reconsider delaying their tax filings based on these changes and to stay informed about the upcoming announcement on April 2nd, dubbed American Liberation Day. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. No more tax. People think the IRS disappears tomorrow. This is crazier than I thought. I mean, you've seen the tweets, no IRS, tariffs only, massive money pouring in. But what's actually changing? Well, let's unpack the truth before tomorrow's big news hits. April 2nd is what the Trump team calls Liberation Day.

Some are even putting off their taxes because they think the IRS might go away. And here's why. During his inauguration, Trump announced, Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service. Commerce Secretary Howard Lutnik just called tomorrow. And that's American Liberation Day.

That's the day when the rest of the world starts to treat America with respect. Through this new ERS program. April 2nd is when the, reciprocal tariffs are scheduled to go into effect. So here's what you need to know. First, what is the ERS? Well, it's basically a rebranding of what we already have, the U.S. Customs and Border Protection.

They've been handling tariffs for years. In this new system, it does the same job with just a catchier name. Some say it's more than just a new name, though. It shows a shift toward what they're calling fair trade deals. But will this actually change your money situation? I mean, that's what matters, right? When we talk about tariffs, many people think that we're making other countries pay us. That's not how it works.

For example, if Walmart buys products from China and a tariff hits those products, Walmart pays it, not China. Then Walmart passes that cost to us, the shoppers. Yes, sometimes foreign companies will lower their prices to stay competitive or their governments might subsidize exports. The cost there gets split in those cases. But the direct payment of tariffs comes from U.S. importers at customs and a significant A significant portion of those costs usually show up in what you pay at the store.

Here, let's look at the numbers. This blue bar, that's $3.3 trillion from income taxes. It's the biggest source of cash for the U.S. government, and by far. Now, the green bar, social insurance taxes, that's $1.8 trillion. Stuff like Social Security and Medicare, still a massive chunk of change. But this little red sliver right here, that's tariffs. Just $70 billion. I mean, you probably spent more on gas.

eggs last year. To replace taxes with tariffs, you need to crank that red bar way up, like 400% tariffs on imported stuff. I mean, imagine paying $30 for toothpaste. That's why this new ERS plan isn't the miracle fix people think it is or hoping it was. But hey, we got to start somewhere, right? And like mom always said, every $70 billion helps. Another issue is inflation. Some point out prices didn't jump during the last round of tariffs, and that's true, but those were much smaller than what's coming now. Larger tariffs across many products would hit your wallet harder. Take vehicle tariffs as an example. The administration has threatened car companies not to raise prices, but with higher tariffs, they almost certainly will. I mean, even if a car is made in America,

many parts come from overseas and would be affected by these tariffs. When a product says made in America, it often still contains parts from around the world. Tariffs make all those pieces more expensive, too. Tariffs, though, aren't just about revenue. They can have goals like bringing jobs back or fixing trade gaps. For some industries, targeted tariffs might help. The Steel Manufacturers Association has praised this move as U.S. Steel and aluminum producers have already seen increased revenue and profits. All indicators suggest Nissan and Honda are moving production from Mexico back to the U.S.,

and the Dodge Durango's next generation will be assembled in Detroit. It's still very early, but either way, tariffs aren't a magic fix for ever. everything. The world economy, it's connected. That's why even the people pushing for big tariffs, they seem hesitant to go all in. Pushing too hard, it could backfire. Bottom line, if you're waiting to file your taxes hoping they'll disappear, you should probably reconsider. Even aggressive tariffs won't replace our tax system anytime soon. The math, it just, it doesn't work. Tomorrow's announcement, though, will still be worth watching. See you next time. Take care. And that wraps up the epic show. If you found this episode valuable, who has

else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C Suite Radio Network. For more top business podcasts, visit C-sweetradio.com