Former White House Council of Economic Advisers acting chair Tomas Philipson calls the Dell family’s $6.25 billion pledge to children a ‘tremendous effort’ and chimes in on President Donald Trump’s income tax proposal on ‘The Bottom Line.’
President Donald Trump suggested Tuesday that Americans may “not even have income tax to pay” in the near future, saying tariff-driven revenue could allow for the historic elimination of the federal income tax under his tenure.
Trump told a press gaggle after his cabinet meeting that “at some point in the not too distant future you won’t even have income tax to pay,” arguing that revenue the government is collecting under his administration is now “so great… so enormous.”
“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,” Trump added.
If enacted, abolishing income tax would mark the most ambitious overhaul of the American tax system in more than a century. Trump’s repeated public support for replacing income tax with tariffs makes this the most explicit endorsement yet.
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President Donald Trump said income tax may soon be a thing of the past for Americans. (Joe Raedle/Getty Images / Getty Images)
Earlier in his second administration, the president floated a tax plan eliminating income tax for individuals earning under $150,000, with tariffs proposed as a replacement.
“It’s time for the United States to return to the system that made us richer and more powerful than ever before,” the president said back in January. “Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens.”
When asked if he was serious about eliminating personal income taxes by podcaster Joe Rogan, then-candidate Trump responded, “Yeah, sure, why not?” and said tariffs could fund the government instead of wage taxes.
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President Donald Trump speaks alongside, Secretary of State Marco Rubio during a Cabinet Meeting at the White House on December 2, 2025. (Andrew Caballero-Reynolds/AFP via Getty Images / Getty Images)
His views on the income tax have changed — as part of his prospective run for president in 1999 under the Reform Party, Trump considered a one-time “net worth” tax on those with wealth over $10M.
If serious, Trump’s proposal would require major tax-code changes and likely face legislative hurdles with a narrow House majority.
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Abolishing the income tax has long been a fringe idea, but with Trump pushing aggressive tariff revenue, the concept has moved closer to the mainstream debate stage.
The White House did not immediately respond to FOX Business’ request for comment.