President Donald Trump said on Thanksgiving during a video call with U.S. military service members that tariff revenues could be large enough to completely or substantially cut the federal income tax over the next couple of years, potentially offsetting the loss with tariff-derived revenue.
He framed the plan as focusing on people earning under $200,000 a year and suggested that some tariff proceeds could also be used to provide a dividend to American citizens while much of the revenue would go toward reducing the national debt.
Earlier remarks in April echoed the same idea, with Trump saying tariffs could reduce or even eliminate many people’s income taxes and highlighting a focus on earners under $200,000.