During the White House meeting, Trump claimed that the growth in tariff income could eventually eliminate the need for federal income taxes altogether. He emphasized that revenue from tariffs has expanded so dramatically that individuals may “not even have income tax to pay” in the foreseeable future. While he left open the possibility of keeping a reduced version of the tax, Trump argued that the federal government is now collecting enough from foreign competitors to dramatically lighten the burden on American workers.

The remarks revive one of Trump’s longstanding economic priorities. Throughout his first term and his current presidency, he has repeatedly promoted the idea of shifting the country’s financial base away from income taxes and toward tariffs. He argues that other nations should carry more of the fiscal load through trade policies, while Americans reap the benefits in higher take-home pay and reduced tax obligations. Trump also announced during the meeting that he will reveal his choice for the next Federal Reserve Chair in early 2026.

The push to overhaul federal revenue policy comes as the administration implements its broader economic agenda, which centers on protective tariffs, reshoring industry, deregulation, and what Trump calls a “worker first” strategy. If income taxes were eliminated or significantly reduced, it would represent one of the most dramatic changes to federal financing since the establishment of the income tax in 1913. Before that amendment, the United States government depended heavily on tariffs and excise taxes to fund operations.

Major overhauls to the income tax have been debated for decades, from Ronald Reagan’s major rate cuts in the 1980s to later Republican proposals for a national sales tax or flat tax. None of those efforts fully replaced the income tax, largely due to concerns about maintaining stable revenue. Trump’s new comments mark one of the most serious modern attempts to revive that conversation, arguing that tariffs now generate enough income to shoulder a greater share of the federal burden. If successful, it would represent the most significant shift in U.S. tax policy in more than a century.