Donald Trump Proposes Eliminating Federal Income Tax in Favor of Tariffs

The president suggests a return to a tariff-based system, citing historical precedent and promising rapid economic growth.

President Donald Trump proposed replacing federal income taxes with tariffs during the 2025 Republican Issues Conference in Miami.
Trump argued that a tariff-based system, similar to the U.S. economy before 1913, would enrich American citizens and reduce reliance on taxing individuals.
Critics, including economists and legal scholars, warn that such a policy could disproportionately burden low- and middle-income Americans while benefiting wealthier individuals.
Currently, tariffs account for only 2% of federal revenue, raising concerns about the feasibility of funding government operations through tariffs alone.
Polls show mixed public opinion on federal taxes, with many Americans believing their taxes are too high but prioritizing other financial concerns over tax reform.