President Trump on Tuesday offered his clearest endorsement yet of eliminating the federal income tax, suggesting that Americans may “not even have income tax to pay,” and arguing that revenue from his administration’s tariffs would be sufficient to replace it entirely.
"At some point in the not too distant future you won’t even have income tax to pay," Trump said during a Cabinet meeting to a group of reporters. "Whether you get rid of it or just keep it around for fun or have it really low, much lower than it is now, but you won't be paying income tax."
BREAKING: President Trump just announced he expects the income tax to be ABOLISHED soon.
— Ryan Fournier (@RyanAFournier) December 2, 2025
This would be the single greatest economic move in American history. Imagine taking home 100% of your paycheck?
The economy would explode overnight. 🚀 pic.twitter.com/aJYqvkUNQy
Earlier this year, Trump floated the idea that individuals making under $150,000 a year would not have to pay any income tax, with tariffs proposed as a replacement for the lost revenue.
"It's time for the United States to return to the system that made us richer and more powerful than ever before," Trump said in January. "Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens."
During his campaign, Trump was asked by podcaster Joe Rogan about eliminating personal income taxes, to which he replied, "Yeah, sure, why not?"
The total revenue generated by tariffs so far in 2025 has grown to $215 billion, while the net revenue from income tax, just for those making under $150,000 a year, totals around $675 billion, according to IRS statistics. In other words, if we want to make abolishing the income tax a likely prospect in the future, either more tariff revenue must be generated or a third way must be found to make up the approximate $460 billion difference.
While the policy is popular, the likelihood it will come to fruition is still slim.