Trump Proposes Eliminating Income Tax, Replacing with Tariff Revenue
President TRUMP has floated a radical overhaul of U.S. tax policy, suggesting income taxes could be "substantially reduced" or even eliminated entirely as tariff revenues surge. Customs duties reached $31–34 billion in October alone following his 2025 tariff regime expansion—a trend he claims could fund the change. "When Tariffs cut in, many people’s Income Taxes will be reduced," Trump stated on Truth Social, emphasizing relief for households earning under $200,000.
The proposal echoes 19th-century fiscal models, where federal operations relied almost exclusively on tariffs. While Trump cited the 1890s as precedent during Bronx barbershop remarks, no detailed transition plan was provided. The idea surfaces amid record tariff collections, though economists question whether import levies can sustainably replace income tax’s $2 trillion annual contribution.
