Trump proposes eliminating income tax and IRS
President Donald Trump previously proposed eliminating the federal income tax and replacing the income tax revenue with tariffs on imported goods.
Trump said the US federal government was funded exclusively by tariffs in the 19th century and argued it was a time of almost unparalleled prosperity for the country.
Commerce Secretary Howard Lutnick reiterated the proposal and said the Internal Revenue Service would be replaced by an “External Revenue Service.”
According to research from accounting automation company Dancing Numbers, the Trump administration’s plan to replace revenues from federal income taxes could save each American taxpayer at least $134,809.