Donald Trump is doubling down on one of his most controversial economic ideas: eliminating federal income tax for American citizens and replacing all that revenue with tariffs on foreign imports. His pitch is simple — instead of taxing Americans, he says, the U.S. should tax other countries through higher import fees.
Trump promoted this concept throughout his 2024 campaign, framing it as a major economic reset that would boost American industry and put more money in families’ pockets. He often describes a future where tax season disappears and tariffs alone fund the government. But experts say the math tells a different story.
Federal income tax makes up over half of federal revenue; tariffs make up less than 4%. Even at historically high levels, tariff income has never come close to replacing what income tax provides. Economists from both parties agree: the numbers don’t work.
There are also serious ripple effects. Major tariff increases usually trigger retaliation from trading partners, which can disrupt global supply chains, raise consumer prices, and damage U.S. industries. Tariffs also act like hidden consumption taxes, meaning everyday goods get more expensive — a burden that hits low-income households hardest.
Legally, the plan faces hurdles as well. The Supreme Court is already weighing cases about presidential tariff authority. Restructuring the nation’s main revenue source would require congressional approval and would likely spark intense legal and political battles.
Still, Trump continues to sell the idea as bold and transformative. Supporters see relief from income taxes; critics see an unrealistic campaign promise that collapses under economic, legal, and practical scrutiny.
In reality, eliminating federal income tax would require a complete overhaul of the U.S. economy, major changes to tax law, and acceptance of enormous risks. For now, the proposal functions more as political messaging than a plan that could actually be implemented.
A dramatic idea, certainly — but delivering it is another matter entirely.