Posted on 11/28/2025 5:11:48 PM PST by SeekAndFind
President Donald Trump said on Nov. 27 that the United States could eliminate income taxes over the next couple of years due to revenue generated from tariffs.
Trump made the remarks during a Thanksgiving call with U.S. service members, saying the tariffs he imposed on foreign nations have generated substantial revenue and pushed companies to build their manufacturing facilities in the United States to avoid tariff costs.
“We’re taking in hundreds of billions of dollars like we’ve never done before. And some of that’s going to go back in a form of a sort of dividend to our people, but much of it’s going to go toward reducing debt,” he said.
“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.”
Trump said in an April 27 post on social media that Americans, particularly those earning less than $200,000 a year, might see their income taxes reduced or “completely eliminated” once his tariffs on foreign imports were implemented.
Data from the Penn Wharton Budget Model, which is based on Department of the Treasury information, showed the United States has collected more than $320 billion in customs and excise taxes as of November, up from roughly $171 billion at the same point in 2024.
The surge in tariff revenues resulted from Trump’s trade policies, which established a 10 percent baseline levy on most imports and a series of reciprocal duties applied to trading partners, with some nations facing duties as high as 40 percent.
The Tax Policy Center estimates that Trump’s 2025 tariff actions have lifted the average U.S. tariff rate to 17.6 percent, with revenue projected to total about $2.3 trillion from 2026 to 2035.
The group estimates that the tariffs will add roughly $256 billion to federal receipts next year and increase the average household’s costs by about $2,200. The group cautions that its figures are “highly uncertain,” as they reflect complex stacking rules and do not include the impact of foreign countermeasures or broader macroeconomic impacts on the U.S. economy.
Trump said in a Nov. 24 post on Truth Social that he expects tariff revenues to skyrocket as global buyers run out of stockpiled imports they had kept to avoid tariffs. “Despite the massive amount of money being made by the United States of America, Hundreds of Billions of Dollars, as a direct result of Tariffs being charged to other countries, the full benefit of the Tariffs has not yet been calculated in that many of the buyers of goods and products, to avoid paying the Tariffs in the short term, ‘STOCK UP’ by purchasing far more inventory than they can use,” Trump said.
“That heavy inventory purchase is now, however, wearing thin, and soon Tariffs will be paid on everything they apply to, without avoidance, and the amounts payable to the USA will SKYROCKET, over and above the already historic levels of dollars received. These payments will be RECORD SETTING, and put our Nation on a new and unprecedented course.”
“President Donald Trump said on Nov. 27 that the United States could eliminate income taxes over the next couple of years due to revenue generated from tariffs. “
Ridiculous.
Insurance companies and big pharma will suffer a bit, but we won’t mind seeing fewer of their obnoxious commercials polluting the airwaves.
Annual USA income tax revenue: $2.6 trillion
Annual Tariff revenue: $0.26 trillion
Uh, there’s a bit of a gap there.
Military members should not pay taxes on their military pay.
If they have outside income, then tax that............
It’s not 1880 anymore. The federal government has grown into such a monster, but there’s no way tariffs alone could cover the bills.
Why?
That’s the point, to starve the monster.
Not if the RINOs have anything to say about it!
I would love to see personal income-tax totally abolished, but I’m not sure that’s a realistic goal in the near term. Tariffs combined with something liked Herman Cain’s 9-9-9 idea (9% income, cap gains and sales taxes).
Building political pressure on the US Supreme Court before their decision on presidential tariffs. Good strategy.
Not a chance. Tariffs did provide most federal revenue until around 1900, with the exception of the Civil War. That stopped during Teddy Roosevelt’s administration as I recall, when a constitutional amendment allowed an income tax.
Cut property taxes for citizens. That would make more sense.
RE: Cut property taxes for citizens. That would make more sense.
That’s not the job of Washington DC. Talk to your county and city about this.
RE: Why?
See Post #4
Tariff revenues through September 30th, 2026 615 billion dollars or based on US population of 347.8 million people 1768 dollars and 26 cents per person.
TDS Seek and find ? You couldn’t tell the difference between your ass and a hole in the ground.
First lie: “ increase the average household’s costs by about $2,200”
Don’t buy don’t pay.
Please…. https://www.irs.gov/pub/irs-soi/22in11si.xls
In 2022…
Filers with $200,000+ in AGI make up 7.7% of all filers, earn 48% of AGI less deficit, and paid 68.5% of the $2.140 trillion all income tax.
The other 92.3% of filers paid $675bn in income tax.
Trump tariffs raised $149bn of incremental revenue. That’s about 22% of the tax paid by the 92.3%ers.
First, stop borrowing money.
So is Elon Musk off the hook too?
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