Abolishing the income tax is far from a fringe idea, according to President Donald Trump.
Due to the revenue the federal government is generating via tariffs, Trump said on Tuesday that Americans may "not even have income tax to pay" in the near future.
Following a meeting with his Cabinet, Trump told the media that "at some point in the not too distant future you won’t even have income tax to pay," arguing that revenue the government is collecting under his administration is now "so great… so enormous."
"Whether you get rid of it or just keep it around for fun or have it really low, much lower than it is now, but you won't be paying income tax," Trump added.
White House spokesman Kush Desai noted: “President Trump is set to raise trillions in revenue for the federal government in the coming years with his tariffs — whose costs will ultimately be paid by the foreign exporters who rely on the American economy, the world’s biggest and best consumer market.” He also cited “trillions in historic investment commitments to make and hire in America” that have been fueled by tariffs.
Trump highlighted record tariff revenues this fiscal year, up 150% from 2024, as a fix for trade deficits with nations like Japan and South Korea. He envisioned using the funds for $2,000 household dividends, massive tax refunds, and debt reduction, calling it the path to eliminating federal income tax.
Earlier this year, Trump suggested a plan to eliminate income tax for individuals earning under $150,000, with tariffs proposed as a replacement.
"It's time for the United States to return to the system that made us richer and more powerful than ever before," the president said in January. "Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens."
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