Staff Reports
Donald Trump’s second term is off to an audacious start, and nothing screams “big ideas” like a complete overhaul of the tax system. A little over a week into his presidency, Trump has hinted that throwing out income taxes in favor of a good old-fashioned tariff system might be on the table. As if the IRS wasn’t already an unwelcome guest at every American dinner table, Trump’s proposal seems to suggest that the days of federal revenue sourced from hard-working Americans could be coming to an end—at least for tips, overtime, and Social Security.
During a rally at his Doral resort in Miami, Trump’s declaration that “America is going to be very rich again, and it’s going to happen very quickly” echoed throughout the ballroom, sparking images of dollar bills raining down while confetti cannons blast to patriotic music. For those not tuning in, he made it clear that he envisions a return to a revenue system reminiscent of America’s past—one that relies on tariffs to fill the coffers rather than picking the pockets of everyday citizens to fund overpriced government programs.
The record books show that between 1870 and 1913, tariffs were the bread and butter of federal funding. After the Sixteenth Amendment in 1913, which sanctioned income taxes, it seemed the government couldn’t resist digging into citizens’ wallets. Trump’s remarks come straight from the playbook of his campaign promises to “Make America Great Again” by stripping down taxes that burden the American worker. He proposed a tax-free landscape on tips, overtime pay, and Social Security benefits, making the average American wonder if they would soon be paying more attention at the next barista’s cash register than the tax code.
It’s worth noting that tariffs are not some mystical tax introduced by the government. They are, in fact, taxes on goods imported into the U.S., historically used to protect American industries from foreign competition. Trump knows a thing or two about these, having slapped tariffs on Chinese goods at rates as high as 25% during his first term. Joe Biden happened to see the wisdom and kept them around, proving that sometimes, even a broken clock can be right twice a day.
Trump Does the Unthinkable – Officially Calls for End to Income Tax, May Be First POTUS in History to Do So
It’s absolutely possible to abolish the income tax without a constitutional amendment. Trump and the GOP simply have to do it.https://t.co/gDdtt4twsS
— Allen (@miscreantmd) January 28, 2025
The Tax Foundation reports that since 2018, those tariffs have raked in a whopping $233 billion. Trump’s new campaign blueprint promises an even greater influx with a proposed flat tariff of between 10 to 20% on all imports, with the possibility of pitching even higher rates for China. If enacted, revenue could soar to around $330 billion annually, potentially replacing some of the holes left by the existing income tax system.
As the Republicans prepare to wrangle over tax reform on Capitol Hill, discussions will inevitably pivot around these innovative ideas. It’s hoped that these deliberations will evoke a much-needed shift in how the federal government is funded. One can almost hear the sound of tax proposals flying around as legislators hash out the details. With a bold approach to taxes and a knack for headline-grabbing statements, President Trump may just get conservatives buzzing about a tax plan that promises to benefit everyday Americans instead of keeping them tethered to an outdated and unpopular income tax system.
