President Intends to End Income Tax

Trump Pushes to Eliminate Income Tax, a Bold Idea With Deep Historical Roots

WASHINGTON—President Donald Trump has reignited a long-dormant debate in American fiscal policy by calling for the potential elimination of the federal income tax, proposing to replace it with revenue from tariffs on imports. The remarks, made in recent weeks, mark a dramatic escalation in the president's tax agenda and raise questions about economic feasibility amid rising federal deficits.

In a video call with U.S. military service members on Nov. 27, Trump suggested that surging tariff revenues could allow for substantial cuts or even the complete abolition of income taxes. "Over the next couple of years, I think we'll substantially be cutting and maybe cutting out completely, but we'll be cutting income tax," he said. He expanded on the idea in subsequent statements, envisioning a future where "you wouldn't even have income tax to pay because the money we're taking in is so great." These comments build on campaign promises from 2024, where Trump floated tariffs as a means to offset income-tax reductions, though experts have expressed skepticism about the math.

The proposal comes as the administration grapples with implementing the "One, Big, Beautiful Bill Act," signed in July, which introduced tax breaks such as deductions for tips and overtime but stopped short of dismantling the income tax system. Economists warn that replacing the roughly $2.5 trillion in annual income-tax revenue—about half of federal receipts—would require tariffs far exceeding current levels, potentially inflating consumer prices and sparking trade tensions. "Even aggressive import taxes would raise far less than what's needed," noted Howard Gleckman of the Tax Policy Center.

Trump's call for erasure stands out in modern history: No U.S. president has explicitly advocated for the complete elimination of the federal income tax since its permanent establishment over a century ago. Previous commanders in chief, from Ronald Reagan to George W. Bush, championed deep rate cuts and simplifications but preserved the tax's core structure. Reagan's 1986 reforms slashed the top rate from 50% to 28% and broadened the base, but elimination was never on the table. Earlier figures like Treasury Secretary Andrew Mellon in the 1920s under Calvin Coolidge pushed for reductions to stimulate growth, yet the system endured.

The federal income tax itself has a turbulent origin story, born of wartime necessities and ideological battles. Its roots trace to the Civil War, when Congress imposed a temporary levy in 1861—a flat 3% on incomes over $800—to fund Union efforts. Repealed in 1872, it resurfaced in 1894 amid Populist demands for progressive taxation, only to be struck down by the Supreme Court in 1895's Pollock v. Farmers' Loan & Trust Co. as unconstitutional without apportionment among states.

The modern era began in 1913 with the ratification of the 16th Amendment, empowering Congress to levy taxes on incomes "from whatever source derived" without regard to state populations. The initial rate was modest: 1% on incomes above $3,000 (about $90,000 today), rising to 7% for the wealthiest. World War I ballooned rates to 77% by 1918, setting a pattern of expansion during conflicts. The tax became a fiscal cornerstone during the Great Depression and World War II, with Franklin D. Roosevelt's Revenue Act of 1942—dubbed "the greatest tax bill in American history"—introducing withholding and broadening the base to millions of middle-class Americans.

Outright opposition from a major political party hasn't been seen since the pre-1913 era, when Republicans largely resisted the income tax as an infringement on property rights and a tool for class warfare. In 1894, Democrats under President Grover Cleveland enacted a 2% tax on high earners as part of tariff reforms, but Republican-led challenges led to its judicial demise. By the Progressive Era, support crossed party lines: Republican President Theodore Roosevelt endorsed the concept, though he didn't aggressively pursue it, and the 16th Amendment passed under Democrat Woodrow Wilson with bipartisan backing.

Since then, both parties have embraced the income tax while sparring over rates and loopholes. Democrats historically favored higher progressive brackets to fund social programs, as in John F. Kennedy's 1964 cuts from 91% to 70% or Bill Clinton's 1993 hikes. Republicans, from Reagan onward, have prioritized reductions to spur growth, but never abolition. Fringe elements, like libertarian factions, have called for repeal, but no major party platform has opposed the tax's existence in over a century.

Trump's vision harks back to a pre-income-tax America reliant on tariffs and excises, a system that prevailed until 1913 but struggled with revenue volatility. As Congress reconvenes, the proposal could face steep hurdles, including constitutional questions and resistance from deficit hawks. For now, it underscores the enduring tension between tax relief and fiscal responsibility in U.S. policy.