Former U.S. President Donald Trump has stirred conversation once again-this time suggesting that tariff revenues might be powerful enough to replace income tax entirely. In a recent Fox Noticias interview, Trump stated there’s a “real chance” that funds collected from tariffs could generate massive revenue, potentially eliminating the need for income tax.
Pointing to history, Trump referred to the period between 1870 and 1913, when tariffs were the main source of national income. “That was when America was richest,” he noted, recalling how Washington once relied solely on tariffs for federal funds.
He emphasized that any such tax overhaul would still require Congress approval, as tax legislation lies in their hands. Nonetheless, he expressed hope that tariff money could pave the way for new tax reforms-like removing taxes on tips and Social Security, a part of his broader campaign goals.
Trump also mentioned that back in the 1880s, a committee was formed just to manage excess tariff revenue. “Their only job was to figure out what to do with all that money,” he said, before criticizing the 1913 move to adopt income tax.
Addressing past criticisms, Trump argued that tariffs were wrongly blamed for the Great Depression, asserting that the economic collapse had begun before tariffs were reintroduced in the 1930s.
Currently, the Trump administration has paused reciprocal tariffs on multiple countries for 90 days, while a major 245% tariff on China continues amid ongoing trade tensions.
