Trump floats idea of near-zero income tax as tariff revenues surge

US President Donald Trump has reignited debate over his aggressive tariff strategy, linking it to a bold new pitch that is cutting America’s income tax to the bone and possibly eliminating it altogether.

Speaking to US military personnel during a video interaction on Thursday, Trump said the federal government is collecting “massive” revenues from the tariffs imposed this year. Because of that, he claimed, the country could soon afford to dramatically scale back income tax.

“Over the next couple of years, I think we’ll substantially be cutting and maybe cutting out completely income tax,” Trump was quoted as saying by foreign media. “The money we’re taking in is going to be so large.” Trump did not outline how such a drastic tax shift would work, nor did he share a timeline or cost estimates. But this isn’t the first time he has tied tariff collections to lower taxes.

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Back in April, Trump wrote on Truth Social that tariffs could lead to income taxes being “substantially reduced, maybe even completely eliminated,” especially for Americans earning under $200,000 a year.

Since returning to the White House earlier this year, Trump has rolled out a sweeping tariff regime that slaps between 10 per cent and 50 per cent duties on most imports, depending on the exporting country. The administration argues that this will boost revenue, protect American manufacturing and push consumers toward US-made products. Critics, however, warn that tariffs act as hidden taxes on consumers and risk sparking retaliation from trading partners.

Tariffs have become central not just to Trump’s trade policy but also to his economic messaging. Earlier this month, he went a step further and promised Americans a “tariff dividend”—a cash payout of at least $2,000 per person, excluding high-income households. In another Truth Social post, Trump praised the economic benefits of tariffs and declared:

“People that are against Tariffs are FOOLS! … A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.” He argued that tariff revenue would help the US begin paying down its $37 trillion national debt while driving new investment into factories and infrastructure.

Trump’s proposal comes as the Supreme Court reviews key elements of his tariff program. During hearings on November 5, several justices expressed doubts about the legality of parts of the policy a sign that some tariffs could be struck down. If that happens, foreign media reported, the government might have to return more than $100 billion in collected duties.

For now, details about the supposed income-tax overhaul remain thin. But Trump’s message is clear: he wants Americans to see tariffs not as a burden, but as the financial engine powering his vision of a low or no—income tax future.