“We’re going to be cutting taxes and it’s possible we’ll do a complete tax cut,” he said. Trump said that some people's income taxes will be lowered or perhaps even completely eliminated due to tariffs.
Income tax to be eliminated?
On Sunday, Trump reiterated an extraordinary ambition he and members of his administration have voiced from time to time throughout his young second term: One day, Americans won’t pay any more income tax, and you’ll have Trump’s tariffs to thank for it.“We’re going to make a lot of money, and we’re going to cut taxes for the people of this country,” Trump said before boarding Air Force One for his return from Pope Francis’ funeral in Rome. “It’ll take a little while before we do that, but we’re going to be cutting taxes, and it’s possible we’ll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax.”
"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 declared in a post on Truth Social.
"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!!!" the president added.
While discussing income tax and tariffs with reporters on Sunday, President Trump said, "And eventually we'll be reducing taxes very substantially for the people of our country, because the money is so great coming in from tariffs that I'll be able to reduce taxes … to a very large extent, and maybe almost completely."
"And it's possible we'll do a complete tax cut, because I think the tariffs will be enough to cut all of the income tax," he noted. The president indicated Americans will be given "a tremendous tax cut," starting "with people making less than $200,000 dollars a year."
This article was originally posted by The Economic Times.