As President Donald Trump prepares to unveil his latest trade policy initiatives in a Rose Garden address today—coinciding with what supporters have dubbed “Liberation Day”—economist Stephen Moore is calling on Republicans to stop fixating on tariffs and refocus their energy on advancing tax cuts.
In an interview with Dan Proft and Amy Jacobson on AM 560’s Chicago’s Morning Answer, Moore—co-author of The Trump Economic Miracle and economic adviser to the president—warned that the current Republican messaging, centered around tariffs, is crowding out what should be the party’s primary economic agenda: tax relief and growth.
“If for the last month we had been talking about tax cuts, not tariff increases, I think we’d be a lot better off as a country—and I think Trump’s numbers would be a lot higher,” Moore said.
Concerns Over GOP Direction
Moore expressed confusion and concern about recent signals from House Ways and Means Chairman Jason Smith, who reportedly suggested openness to tax increases—not just on upper-income earners, but potentially on corporations as well.
“That came out of left field,” Moore said. “I have to talk to him because that doesn’t sound like the Jason Smith I know.”
Moore stressed that any increase in corporate tax rates would run counter to Republican economic orthodoxy, especially when paired with Trump’s push for higher tariffs. “If you’re going to do tariffs, you’ve got to bring down the corporate rate on things that are made here in America,” he insisted.
Moore reiterated the core conservative tax mantra: low rates and a broad base. He argued that the 2017 Trump tax cuts followed this formula and spurred significant economic growth and increased revenue.
“Every time we’ve lowered tax rates in the last hundred years, we’ve seen more revenue and more growth,” Moore said. “We don’t need to relearn that lesson.”
Tariffs: Strategy or Distraction?
Today’s Rose Garden event is expected to formalize Trump’s tariff strategy, built around the idea of reciprocity—using U.S. tariffs as leverage to force other nations to lower their own. Moore conceded that, in theory, the strategy could work but warned that in the short term, it’s creating economic uncertainty.
“My 401(k) plan has taken a hit,” Moore admitted. “We’ve had a lot of short-term pain already, and it’s unclear how long this will take—weeks, months, a year?”
Despite his misgivings, Moore said he’s still betting on Trump to deliver over the long run, pointing to the stock market’s strong performance during Trump’s first term. “Trump has a track record of being good for investors,” he said.
The Case for a 15% Flat Tax
Moore floated an ambitious idea as a way to simplify and harmonize the tax system alongside tariff policy: a 15% flat tax on everything—corporate income, personal income, capital gains, dividends, and even a 15% tariff as a kind of consumption tax.
“You get rid of all the special interest provisions and you’re done,” Moore said. “It’s flat, it’s low, everybody pays it.”
Cutting Waste and Pushing Deregulation
Moore praised ongoing efforts by the Department of Government Efficiency (DoGE) to root out waste, fraud, and abuse across federal agencies. He cited recent revelations by USDA Secretary Brooke Rollins, who canceled contracts and grants worth millions—including one for $600,000 to support “trans farmers” in San Francisco and another for a DEI initiative in the pest control industry.
“Why is Elon Musk considered a villain for exposing this kind of fraud?” Moore asked. “He’s showing how taxpayer money is being abused.”
Looking Ahead
Moore urged Republican lawmakers to act swiftly to extend the Trump-era tax cuts, which are set to expire. If not extended, Americans face a $5 trillion tax hike, which Moore warned could tip the economy into a recession.
“Trump’s heart is in the right place. He wants to help the middle class and blue-collar workers,” Moore said. “But tariffs alone won’t get us there—we need tax reform and deregulation too.”
As Trump takes the stage to outline his economic vision, Moore hopes the administration and Congressional Republicans will shift their attention back to what he views as the most powerful engine of prosperity: lower taxes and fewer government roadblocks.
“This is not the time for hesitation. We need clarity, boldness, and action,” he concluded.