President Trump is weighing “almost completely cutting” income tax over the next few years because of outsized tariff revenue. U.S. net tariff revenue grew by 330% year-over-year to $31.4 billion in October, a record-high for the month.
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“Over the next couple of years, I think we’ll substantially be cutting and maybe cutting out completely, but we’ll be cutting income tax,” Trump told US military service members on a video call.
Trump’s Tariffs Face Supreme Court Test
Earlier this month, the Supreme Court heard oral arguments for the legality of the tariffs under the International Emergency Economic Powers Act (IEEPA). While SCOTUS has not yet issued a decision on the case, several justices expressed skepticism that the IEEPA grants the president broad authority to impose tariffs.
Individual income taxes are the government’s largest source of revenue by a wide margin. In October, they were responsible for 53.65% of revenue, while customs duties accounted for 7.75%.
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