Key Points
New federal agency targeting international trade revenue collection
Shifting taxation focus from domestic to foreign sources
Planned launch on January 20, 2025 with presidential inauguration
Aims to make foreign entities pay "fair share"
Trump also criticised the current reliance on domestic taxes through the Internal Revenue Service (IRS) and emphasised the need for foreign entities benefiting from trade with the US to contribute their fair share.
In a post on social media platform Truth Social, Trump said, "For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS). Through soft and pathetically weak trade agreements, the American economy has delivered growth and prosperity to the world while taxing ourselves."
He further said that January 20 would mark the establishment of the External Revenue Service.
"It is time for that to change. I am announcing today that I will create the External Revenue Service to collect our tariffs, duties, and all revenue that comes from foreign sources. We will begin charging those that make money off of us with trade, and they will start paying, finally, their fair share. January 20, 2025, will be the birth date of the External Revenue Service. Make America great again!"
The IRS is led by the Commissioner and Deputy Commissioner who oversee the organisation's operating divisions and integrated support functions.
The IRS is organised to carry out the responsibilities of the Treasury Secretary per Internal Revenue Code (IRC) Section 7801. The IRS was created based on the secretary's authority to administer and enforce the Internal Revenue laws.
Trump will officially be sworn in for his second term as US President on January 20.
Earlier, the US Congress had convened to count electoral college votes and certify Trump's victory over Vice President Kamala Harris in the presidential election held in November. Trump's election victory was certified ahead of his inauguration with no objections from any lawmakers as the tally of states was announced on the House floor. Donald Trump won 312 electoral votes while Harris got 226 votes.
