President Trump is on a mission to give Americans a break on taxes, and his latest proposal might be his boldest yet. After suggesting no tax on tips and no tax on overtime pay, he’s now floating the idea of scrapping federal income taxes altogether. Imagine: no federal income tax for the average American—just like the days when the U.S. government was financed almost entirely by tariffs.
Earlier this week, Trump stopped by a Bronx barbershop with Fox News’s Lawrence Jones to talk inflation, taxes, and America’s economic future. When a barber asked if it might be possible to eliminate federal income taxes once the country’s economy is back on track, Trump’s answer was emphatic: “There is a way!” He pointed out that back in the 1890s, America was financially booming without an income tax, funding itself mainly through tariffs on imports. “We had so much money, they had to set up committees—blue ribbon committees—to figure out how to spend it!” Trump said, reminiscing about an era he sees as a model for today.
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The notion of replacing federal income taxes with tariffs isn’t new, but it’s rarely been seriously considered in the modern era. The last time tariffs made up the bulk of federal revenue was before the Civil War. Trump, however, sees a potential to tap into tariff revenue as a way to ease the tax burden on working Americans.
While Trump’s proposal excites many of his supporters, analysts are split on whether it’s financially viable. Tax experts, including those at Tax Notes, point out that tariffs are often considered regressive, meaning they impact lower-income consumers more than wealthier ones because they drive up the cost of imported goods. During Trump’s first term, his tariffs added $80 billion in revenue, but much of that cost was passed onto consumers at the register. If tariffs were raised further to replace income taxes entirely, the burden could shift heavily onto consumers.
Yet Trump’s bold vision continues to resonate with voters frustrated by high taxes and inflation. A plan that puts more money back in Americans’ pockets, coupled with Trump’s track record of cutting regulations, could be a powerful message heading into the election. And for Trump, reviving an old-fashioned, America-first economic model might just be the key to getting voters excited about his agenda. As more Americans wonder if a tax-free paycheck could become a reality, Trump’s big idea is sure to make waves on the campaign trail.
So, could Trump really eliminate federal income taxes? It’s a bold gamble, but one that might just make him more popular than ever with American workers.
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