No income tax for Americans finally? Trump again touts tariff revenue as path to ending income tax; signals when it could happen

US President Donald Trump has renewed his proposal to dramatically cut, or even eliminate, federal income tax, arguing that revenue generated from tariffs could replace a significant portion of what Americans currently pay.

Speaking to US military service members on Thursday, Trump suggested major reductions could take place in the coming years. “Over the next couple of years, I think we'll substantially be cutting and maybe cutting out completely, but we'll be cutting income tax. Could be almost completely cutting it because the money we're taking in is going to be so large,” Reuters quoted him as saying. He offered no specifics for how such a shift would be implemented.

No income tax for people making less than $200,000 a year

This is not the first time Trump has linked tariff revenue to the potential decline or elimination of income taxes. In a Truth Social post dated April 27, he reiterated the idea. “When tariffs cut in, many people’s income taxes will be substantially reduced, maybe even completely eliminated,” Trump wrote. “Focus will be on people making less than $200,000 a year.”

Trump has consistently emphasized tariffs, not taxes, as a primary driver of national wealth. In a January 2 Truth Social post, he wrote, “The Tariffs, and Tariffs alone, created this vast wealth for our Country. Then we switched over to Income Tax. We were never so wealthy as during this period. Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!”

Trump’s tariff policy: Higher import taxes to boost revenue

After returning to the White House earlier this year, President Donald Trump imposed a new round of tariffs on US trading partners, applying taxes of 10% to 50% on most imports, depending on their country of origin. Trump argues the policy will raise federal revenue and push consumers toward American-made products.

Trump’s $2,000 tariff dividend proposal

Earlier, Trump defended his aggressive tariff stance by proposing a “tariff dividend” of at least $2,000 per person, excluding high-income earners. The president criticized opponents of tariffs and said the new revenue would allow Americans to receive direct payments from the government.