Trump says he may cut income tax ‘completely’ because tariff revenue will be ‘so large.’ Here’s how the math adds up

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They accidental decease and taxes are life’s lone certainties — but according to U.S. President Donald Trump, a important information of the second could beryllium connected the chopping block.

Speaking to U.S. subject work members past week, Trump floated the thought of eliminating income taxes entirely, funded by what helium described arsenic monolithic caller tariff revenues.

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"Over the adjacent mates of years, I deliberation we'll substantially beryllium cutting and possibly cutting retired completely, but we'll beryllium cutting income tax. Could beryllium astir wholly cutting it due to the fact that the wealth we're taking successful is going to beryllium truthful large," helium said (1).

It’s a bold proposal, particularly fixed that income taxation is the national government’s azygous largest root of revenue.

In fiscal twelvemonth 2025, the national authorities collected $2.656 trillion successful idiosyncratic income taxes — astir 50.7% of Uncle Sam’s full $5.235 trillion successful receipts (2). By comparison, firm income taxes brought successful $452 cardinal and tariff gross totaled conscionable $195 billion.

Critics rapidly pointed retired the gap.

Economist Erica York of the Tax Foundation said the mathematics simply doesn’t enactment — nor would Trump’s imaginativeness beryllium casual to implement.

“Mathematically impossible, positive immoderate income taxation cuts would necessitate Congress,” York wrote connected X (3).

“To regenerate the astir $2 trillion of gross raised by the idiosyncratic income taxation with tariffs would necessitate astronomically precocious tariff rates. And those rates would shrink imports, making it intolerable to make capable gross to regenerate the income taxation (4).”

It’s besides worthy noting that adjacent with income taxation revenue, the national authorities inactive spent acold much than it brought in: $5.235 trillion successful full receipts versus $7.010 trillion successful outlays, leaving a $1.775 trillion shortage successful fiscal 2025.

While Trump’s connection faces superior doubts, argumentation changes aren’t the lone way to lowering taxation bills. Here are 2 almighty assets that mundane investors tin usage to their vantage — the aforesaid ones the affluent person leaned connected for decades.

Scott Galloway, prof of selling astatine New York University’s Stern School of Business, erstwhile said that if you’re trying to physique wealth, you person “an work to wage arsenic small taxation arsenic possible.”