Trump says he could cut income tax ’completely’ through tariff revenue

Published 28/11/2025, 06:28
© Reuters

Investing.com-- U.S. President Donald Trump said on Thursday his administration could slash federal income taxes “substantially” or even eliminate them "completely" within the next few years, relying on soaring tariff revenues.

Speaking to U.S. military service members, Trump argued that the money coming in from tariffs could grow so large that it might fully replace income tax income.

The proposal is consistent with Trump’s broader trade-first fiscal agenda, which envisions tariffs as the backbone of federal revenue. While he offered no detailed roadmap or timetable, the remarks signal a dramatic shift away from conventional taxation.

Trump had also floated the idea of a “tariff dividend.” Earlier this month, he argued his critics had been proven wrong and pledged that most Americans would get at least $2,000 from the tariff windfall.

 
 

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