? U.S. President Donald Trump has once again attracted attention with a bold statement — he claimed that in the next couple of years, the United States could completely eliminate the income tax for citizens, compensating for lost revenue through tariff income. According to him, this is intended to provide Americans with additional financial relief and support economic growth.
However, it is important to immediately note a key nuance: current federal budget revenue from tariffs is approximately $300 billion per year, while Americans pay over $3 trillion in income taxes annually. This creates an obvious gap in the calculations and raises the question of how the shortfall is planned to be offset — through higher tariffs, new duties, or other mechanisms.
In his statements, Trump also emphasized that he intends to keep the stock market at historical highs, considering this a “big plus” for 401(k) retirement accounts, which rely on the stability and growth of equity assets. His strategy is essentially aimed at simultaneously reducing the tax burden for citizens and stimulating the stock market, which should increase investor confidence and potentially boost consumer spending.
“Over the next two years, I think we will significantly cut, maybe even completely, but we will cut the income tax. This could lead to almost total spending reduction because the money we receive will be very large,” Trump said during a teleconference with U.S. military personnel (broadcast by Fox News).
Despite the president’s optimism, economists and analysts point out the real limitations of such an approach. Eliminating income tax without significantly increasing other revenue sources or cutting government spending could lead to a higher budget deficit, increased inflationary pressure, and the need for maneuvers with government borrowing. The question of whether new tariffs will be sufficient to offset such a large tax cut remains open and sparks debate among experts and politicians alike.
? In other words, on paper the promise sounds grand — $3 trillion for Americans — but in practice, implementing such plans will require serious financial engineering and political support. At the same time, Trump emphasizes the popularity of these measures among voters while underscoring his intention to maintain investor confidence and stock market stability.
A video clip of Trump’s speech can be viewed on our Telegram channel.
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