President Trump has suggested that the income tax could be all but eliminated as a result of the tariff revenue.
“I think over the next couple of years, we’re going to cut the income tax substantially, and maybe completely, but we’re going to cut the income tax. We could cut it almost completely because the money we’re taking in is going to be so big,” Reuters quoted Trump as saying on Thursday in remarks to U.S. service members.
The US president, who has often advocated massive tariffs on trading partners, proposed a tariff dividend for Americans earlier this month. He called on people who criticized the tariffs and promised a dividend of at least $2,000 per person, excluding high-income earners.
In a post on Truth Social, President Trump wrote: “People who oppose tariffs are FOOLS! We are now the richest, most respected country in the world, with almost no inflation and a record stock market price. 401k is the highest EVER.”
He promised Americans dividends and said: “We are receiving trillions of dollars and will soon start paying off our HUGE DEBT, $37 trillion. Record investment in the US, factories and plants everywhere. A dividend of at least $2,000 per person (excluding high earners!) will be paid to everyone.”
Trump’s proposal for a $2,000 tariff dividend followed Supreme Court arguments on November 5, during which several justices expressed skepticism about the tariffs. That suggests many of the tariffs could be rolled back, which could result in more than $100 billion in refunds, Bloomberg reported.
