Donald Trump details plan to eliminate income tax for US citizens
President Donald Trump has proposed replacing federal income taxes with revenue from tariffs on imported goods. He has stated that Americans may not have to pay income tax in the “not too distant future.”
This idea, repeatedly pledged during his 2024 campaign, is a central but controversial part of his economic agenda. Trump argues the government should tax foreign nations via tariffs to enrich American citizens, rather than taxing those citizens directly.
However, the fiscal data reveals a significant challenge. Individual income taxes currently provide over half of all federal revenue, while tariffs contribute less than 4%.
Economic experts widely dismiss the proposal as unworkable. Analysts note that even historically high tariff rates generate nowhere near the revenue required to replace income taxes, calling the plan mathematically and economically infeasible.
Tariffs also carry considerable risks, including potential retaliation from other countries and a regressive impact that disproportionately burdens lower-income households. Legal challenges to presidential tariff authority are also pending before the Supreme Court.
Despite the skepticism, Trump continues to advance the idea, framing it as a return to a past system. He suggests the government’s tariff revenue is becoming so “enormous” that it could eventually render income taxes obsolete.
The proposal remains a bold promise that faces substantial practical and economic hurdles, leaving its implementation in serious doubt.
