Federal income taxes may be totally abolished for those earning under $200,000, President Trump has promised.
In a post on his social-media platform Truth Social, the President said the income from his new “reciprocal tariffs” on foreign nations would be a boon for ordinary Americans.
“When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated,” Trump posted.
“Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!”
President Trump made no secret of his ambition to abolish federal income taxes during his election campaign.
A week before his inauguration, he made another post on Truth Social where he outlined his ambition to replace the Internal Revenue Service, taxing Americans, with an External Revenue Service, taxing foreign trade.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” President Trump posted.
“Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves. It is time for that to change. I am today announcing that I will create the EXTERNAL REVENUE SERVICE to collect our Tariffs, Duties, and all Revenue that come from Foreign sources. We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share. January 20, 2025, will be the birth date of the External Revenue Service. MAKE AMERICA GREAT AGAIN!”
President Trump’s flagship tariff policy is expected to bring dozens of foreign nations to the negotiating table to hammer out new terms for trade with the US, to avoid punitive impositions on exports.
A deal with China, the main target of the tariffs, remains elusive at present; although President Trump has expressed his optimism that one will be struck soon.