Imagine living in America and not having to pay taxes! Sounds like a dream, right? Well, Donald Trump plans to turn this dream into reality during his second term as the President of the United States. Ever since he returned to the White House, he has repeatedly mentioned his vision to eliminate income tax.
Earlier in March, he mentioned that his new tariff policies would help him reduce or eliminate income tax for people making less than $200,000 annually. However, this time, he has supported his vision by mentioning additional plans of the government.
He wrote on Truth Social, “When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year.”
He then added his plans to create new opportunities within the country. Trump’s post reads, “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!!!”
Trump has been pushing the ‘Make in US’ initiative to make the country self-reliant and a land of ample opportunities. At the World Economic Forum in Davos, Switzerland, Trump said, “Come make your product in America and we will give you among the lowest taxes of any nation on Earth.”
Promising substantial tax incentives and tax cuts to attract global manufacturers, he said, “We’re bringing them down very substantially, even from the original Trump tax cuts,” as he compared to his tax policies during his first term as POTUS.
He then added, “But if you don’t make your product in America, which is your prerogative, then very simple you will have to pay tariff.”
While Trump has repeatedly said that increasing tariffs against other countries would help reduce taxes for citizens, people and experts don’t believe so. An X user wrote, “Tariffs aren’t magic wands that erase taxes—they shift burdens. Who really pays when prices rise? Playing shell games with people’s wallets and calling it a win smells like sabotage wrapped in a promise.”
Tariffs aren’t magic wands that erase taxes—they shift burdens. Who really pays when prices rise? Playing shell games with people’s wallets and calling it a win smells like sabotage wrapped in a promise
— Seth Doc (@aris_alpha) April 27, 2025
It is claimed that the consequences of tariffs will ultimately be borne by American citizens, thus burning a hole in their pockets. Josh Stillwagon, an associate professor of economics and chair of the Economics Division at Babson College, explained that Trump’s tariff war “is going to affect everything in the economy” while adding that there’s “immediate price increase that’s going to be passed on to consumers here, basically as soon as the retailers have to buy new product,” as per Economic Times.
Gustavo Flores-Macias, a professor of government and public policy at Cornell University, added, “It’s not just the price aspect and purchasing power decreasing. As tariffs start to work their way through the economy …. low-income families’ jobs often will be the first to go. And those sectors of the population are most vulnerable.”
Well, Trump’s vision to eliminate income taxes for low-income households is definitely a fascinating one, and we all wish that to happen. But practically, it seems to be a far-fetched dream yet.
