President Donald Trump announced Sunday that income taxes for many Americans will soon be substantially reduced — and could potentially be eliminated altogether — thanks to the massive revenue being generated by his new tariffs.
Posting on Truth Social, Trump declared, “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.”
He added, “Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!”
Speaking to reporters on Sunday, the president expanded on the idea, explaining that the flow of money coming into the U.S. treasury from tariffs would allow dramatic tax relief for American workers. “Eventually we’ll be reducing taxes very substantially for the people of our country, because the money is so great coming in from tariffs that I’ll be able to reduce taxes … to a very large extent, and maybe almost completely,” he said.
“And it’s possible we’ll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax,” Trump continued.
He emphasized that the cuts would prioritize middle and working class Americans, saying, “The focus will start with people making less than $200,000 dollars a year.”
The announcement comes as President Trump prepares to celebrate the 100-day milestone of his second term, with a rally scheduled in Michigan this week. His administration has touted the success of tariff revenue not only as a tool for protecting American industries but now also as a potential replacement for the federal income tax system.
The idea of eliminating the federal income tax is not entirely new for Trump. During his 2024 campaign, he floated the possibility of abolishing income taxes in favor of tariffs, suggesting it could usher in an era of unprecedented prosperity similar to the post-Civil War period when America operated largely on tariffs rather than direct taxation.
Supporters argue that Trump’s plan could supercharge American manufacturing by making imports more expensive and domestic production more attractive, while freeing millions of Americans from the burden of paying income taxes.
Critics, however, warn that relying heavily on tariffs could increase prices for consumers, although Trump’s team insists that aggressive renegotiations with trading partners would prevent that from happening.
Either way, the political implications are enormous. Trump’s proposed overhaul would upend the tax code, reshape the economy, and deliver a historic win to working Americans who have long shouldered the tax burden.
As Trump’s new economic strategy continues to unfold, all eyes will be on the administration’s next moves to determine whether the promise of an income tax-free America can soon become reality.
With fresh tariffs already flooding the Treasury and major corporations announcing new U.S. factories and jobs, Trump’s bold vision for American prosperity seems to be gaining momentum.
