An incoming Trump administration could potentially eliminate income taxes for Americans, incentivizing economic growth and revitalizing the nation’s work force.
Former President Donald Trump floated the proposal during a discussion at a barbershop in the Bronx this week when someone asked if he’d ever considered getting rid of federal taxes.
🚨BREAKING: Trump considering ending ALL Federal income taxes and replacing them with tariffs
— DC_Draino (@DC_Draino) October 24, 2024
If he does this, he will go down in American history as the greatest President since George Washington pic.twitter.com/P0OhnhDi6h
From The New York Times:
During a Fox News segment on Monday, Mr. Trump took questions at a barbershop in the Bronx. When asked if the United States could potentially end all federal taxation, Mr. Trump said the country could return to the economic policies in the late 19th century, when there was no federal income tax.
“It had all tariffs — it didn’t have an income tax,” Mr. Trump said. “Now we have income taxes, and we have people that are dying. They’re paying tax, and they don’t have the money to pay the tax.”
Trump had previously touched on the notion in June, discussing the possibility the federal government could be instead fully funded by tariffs.
Despite the groundbreaking proposal, the Times predictively went on to cut down the idea, arguing such a scheme would be “mathematically impossible and economically destructive,” while Trump maintains, “There is a way, if what I’m planning comes out.”
Giving a refresher on the origin behind the tax on Americans’ work earnings, The Times went on to explain, “The United States put income taxes in place to achieve two main goals: raising taxes on the rich and paying for a larger federal government,” and an expert claims the tax was seen as “a necessary leveler” to combat wealth inequality.
From the Times:
Actually creating a federal income tax was ultimately an involved process, requiring the ratification of the 16th Amendment in 1913. At first, it was narrowly targeted at wealthy individuals and corporations, but fighting two world wars and creating programs like Social Security was expensive. American policymakers turned to income taxes to pay for those priorities.
The publication also highlighted how most federal funding now comes from income and payroll taxes instead of tariffs.
Tariffs dwindled as a source of federal revenue while income taxes expanded. Today, tariffs make up just 2 percent of federal revenue, while income and payroll taxes make up about 94 percent. Overall, the tax system is progressive: In 2020, the top 20 percent of earners in the United States paid about 80 percent of all federal taxes, according to the Congressional Budget Office.
News the former president could get rid of income taxes was hailed on social media, including by former Congressman Ron Paul, who wrote on X, “Now this would REALLY make America great again!”
Now this would REALLY make America great again! pic.twitter.com/16riCI6bq5
— Ron Paul (@RonPaul) October 24, 2024
BREAKING: TRUMP IS NOW CONSIDERING USING TARRIFS TO FULLY FUND THE GOVT AND ABOLISH THE INCOME TAX COMPLETELY
— Jack Poso 🇺🇸 (@JackPosobiec) October 24, 2024
Should Trump abolish the income tax?
— Being Libertarian (@beinlibertarian) October 24, 2024
🔥🔥🔥🔥 pic.twitter.com/5RguWj3rHL
Do it
— Jack Poso 🇺🇸 (@JackPosobiec) October 24, 2024
In a time of pervasive money printing and funding of fed gov thru bond issuance, income taxes are a tribute
Trump should abolish the Income Tax pic.twitter.com/PEmjnE6mPW
NEW: Trump is looking to potentially end the income tax in favor of tariffs.
— Eric Daugherty (@EricLDaugh) October 24, 2024
This is how the U.S. used to operate. pic.twitter.com/2rZTUO7zLv
🚨BREAKING: Trump considering ending ALL Federal income taxes and replacing them with tariffs
— DC_Draino (@DC_Draino) October 24, 2024
If he does this, he will go down in American history as the greatest President since George Washington pic.twitter.com/P0OhnhDi6h
Although not a formal policy proposal, Americans are fed up with being overtaxed by the federal government on everything from gas to food, cars, and land, and the appealing idea of eliminating income taxes – regardless of the consequences – offers yet another way Trump could make America wealthy again.