As the Democrats in the Senate, led by Minority Leader Chuck Schumer, continue to keep the federal government shut down, they’re playing right into President Donald Trump’s ultimate plans to shift the U.S. economy from an income tax-based system to one funded by tariffs.
“I want you to know that despite the current Democrat-induced shutdown, we will get our service members every last penny,” Trump said during a speech celebrating the Navy’s 250th anniversary in Virginia. “Don’t worry about it.”
Paychecks for the military aren’t the only thing tariffs could cover. Government programs for the most vulnerable could also be funded through tariff revenue.
“As the government shutdown continues, the Trump Administration is redirecting revenues collected from tariffs to fund WIC – the Women, Infant, and Children’s nutrition program. U.S. Sen. Josh Hawley, R-Missouri confirmed,” Missourinet reports.
Trump has long held the belief that the U.S. should eliminate the federal income tax and fund the government through tariffs on foreign goods. While Trump may need an appropriations bill passed by Congress to get the job done, tariff collections are deposited into the general fund of the U.S. Treasury, and some funds can be reallocated.
“We’re going to make a lot of money, and we’re going to cut taxes for the people of this country,” Trump said in April. “It’ll take a little while before we do that, but we’re going to be cutting taxes, and it’s possible we’ll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax.”
“When we were a smart country, in the 1890s,” Trump said during a 2024 campaign stop, adding that he’d like to eliminate the income tax. “This is when the country was relatively the richest it ever was. It had all tariffs. It didn’t have an income tax. 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.”
Half the IRS has been furloughed because Democrats won’t vote to pass a clean Continuing Resolution in the Senate.
“This memorandum is to advise you that Congress has not passed an appropriation for Fiscal Year 2026 or a Continuing Resolution; therefore, you will be furloughed beginning today, October 8, 2025,” a Treasury Department memo states. “When you are on furlough, you will be in non-pay, non-duty status. Paid leave, such as annual, sick, court, or military leave, which has been approved for this furlough period, is cancelled. Also, during the furlough, you must remain away from your workplace (if you are reporting for work at your post of duty) and you are prohibited by law from working, even on a voluntary basis.”
Once again, Schumer has lost the plot and is handing Trump assistance with one of his top, longtime goals of moving the American taxation system in a direction that unburdens taxpayers and places pressure on imports. This is only the beginning.
