Trump Vows Tariff Windfall Will Wipe out Income Taxes for Millions

‘External Revenue Service’ Incoming: Trump Eyes Elimination of Income Taxes

Trump maintains that as tariff revenues accumulate, income taxes for American citizens could either be significantly reduced or abolished altogether. Currently, data indicates that approximately $215 million is being collected daily from tariffs, with projections suggesting a 2025 revenue increase reaching around $166.6 billion. The U.S. president contends that this revenue stream will continue to expand, potentially eliminating income taxes for a substantial portion of Americans.

“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year,” Trump said on Truth Social. “Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned.”

Trump added:

It will be a bonanza for America!!! The External Revenue Service is happening!!!

This is not the first occasion Trump has floated the prospect of abolishing income taxes. In a conversation with a group of barbers from the Bronx, he asserted that “there is a way” to dismantle the income tax code. “In the old days, when we were smart, when we were a smart country in the 1890s and all, this is when the country was relatively the richest it ever was. It had all tariffs. It didn’t have an income tax,” he said.

Commerce Secretary Howard Lutnick has openly declared that President Trump’s ambition is to abolish federal income taxes for individuals earning under $150,000 annually. In discussions with CBS News and other media outlets, Lutnick detailed that this initiative forms a cornerstone of Trump’s wider tax strategy, which also seeks to eliminate taxes on tips, overtime earnings, and Social Security benefits. Lutnick emphasized:

I know what his goal is: No tax for anybody who makes less than $150,000 a year. That’s his goal. That’s what I’m working for.