Trump said, ‘Very soon — not in the distant future but in the near future — American citizens will not have to pay any income tax at all’

President Donald Trump declared that Americans could soon pay “no income tax at all,” pointing to an unprecedented flood of tariff revenue that he says is already “making the country rich again.”

Speaking to reporters after a marathon Cabinet meeting, Trump laid out his boldest economic vision yet: “At some point – and it’s not the distant future, it’s the not-too-distant future – you won’t even have income tax to pay. The money we’re taking in from tariffs is so massive, so enormous, that we won’t need it. We can get rid of it completely, or just keep it around for fun, or make it really low. But you won’t be paying income tax.”

The president’s remarks come as U.S. Customs and Border Protection reports that tariff collections have skyrocketed since Trump’s second-term tariffs took full effect in early 2025. Preliminary December numbers show monthly collections approaching $40 billion – nearly triple the rate from a year ago – with the Treasury on pace to exceed $500 billion for fiscal year 2026.

Trump doubled down in the White House driveway gaggle: “We’re bringing in trillions – with a T – from countries that have been ripping us off for decades. China, Europe, everybody. That money is coming straight into the U.S. Treasury. Why should Americans keep sending half their paycheck to Washington when we can fund the entire government with tariffs?”

The White House is actively exploring multiple paths to deliver what aides are calling “the largest middle-class tax cut in world history.” Options under serious discussion include:

• Completely eliminating federal income tax for households earning under $200,000 (covering roughly 93% of Americans)
• Sending direct “tariff dividend” checks of $1,000–$2,000 per taxpayer starting in 2026
• Phasing out the IRS entirely and replacing it with a dramatically smaller “Tariff Revenue Service”

Treasury Secretary Scott Bessent told Fox Business this morning: “The math is undeniable. Tariff revenue is now growing faster than the entire economies of most countries. We are studying every legal pathway to give Americans total income-tax freedom within the next two years.”

Wall Street reacted instantly. The Dow Jones surged 1,100 points in afternoon trading on the news, with manufacturing and domestic energy stocks leading the rally. Bitcoin and gold also spiked as investors priced in a future of lower direct taxation.

Democrats immediately blasted the plan as “mathematical fantasy.” House Minority Leader Hakeem Jeffries warned that eliminating $3.1 trillion in annual income-tax revenue would “explode the deficit by trillions and force brutal cuts to Social Security and Medicare.” Economists aligned with the left-leaning Center on Budget and Policy Priorities called it “the largest tax shift from the rich to the working class in American history,” arguing tariffs function as a regressive consumption tax that hits lower-income families hardest.

Trump dismissed the criticism, saying, “The same people told you tariffs would destroy the economy. Instead we’re bringing in half a trillion dollars a year and factories are coming back. Their models are wrong – again.”

Senior administration officials say formal legislative language could be introduced as early as January 2026 through budget reconciliation, which requires only 51 Senate votes. A senior White House aide told reporters off-camera: “If revenue keeps growing at this pace, we’ll have the votes. Republicans, and even some Democrats in red states, won’t be able to say no to zero income tax.”

As of tonight, the White House website features a new banner: “Tariffs = Your Money Back.” The president ended his day with a post on Truth Social: “ZERO TAXES SOON. PROMISE MADE. PROMISE KEPT. AMERICA IS WINNING AGAIN!”

The United States has not operated without a federal income tax since 1913. If President Trump’s vision becomes reality, it would mark the most revolutionary overhaul of the American tax system in over a century.