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Trump Says Tariff Windfall Could Allow Cutting — or Even Eliminating — Federal Income Tax

11:07 AM, 11/28/2025
Trump Says Tariff Windfall Could Allow Cutting — or Even Eliminating — Federal Income Tax

President Trump told military members on a video call that tariff revenue could be large enough to let his administration substantially reduce—or potentially eliminate—federal income tax within the next couple of years. He argued that tariff receipts will be "so large," but he did not identify which tariffs or chart a legislative path to make the change. Reporters: Jeff Mason and Ismail Shakil.

Palm Beach, Florida — U.S. President Donald Trump said Thursday that revenue from tariffs could allow his administration to substantially reduce, and possibly eliminate, federal income tax within the next couple of years.

Speaking on a video call with military service members, Trump said tariff receipts will be "so large" that they could replace income tax revenue. "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. Could be almost completely cutting it because the money we're taking in is going to be so large," he said.

Trump did not provide details about which tariffs would generate the revenue or outline concrete legislative steps or timelines for implementing such a change. The remark frames the prospect as dependent on future tariff collections rather than a specified policy plan.

Reporters: Jeff Mason and Ismail Shakil. Edited by: Tom Hogue.

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