#XRPETF Federal taxes will be "substantially reduced" once tariffs are established, according to Trump
The U.S. president had previously raised the idea of eliminating the federal income tax and replacing it with revenue from import tariffs.
The President of the United States, Donald Trump, recently stated that federal income taxes would be "substantially reduced" or potentially eliminated once the tariff regime is fully implemented.
In a post on April 27 on Truth Social, Trump added that the focus of the supposed tax cuts would be on individuals earning less than $200,000 a year.
The U.S. president also said that the "External Revenue Service" — a reference to funding the federal government exclusively through import tariffs instead of the current model of tax collection through the Internal Revenue Service (IRS) — is taking shape.
Eliminating the federal income tax would likely be a positive catalyst for asset prices, including cryptocurrencies, as the increase in disposable income should partially flow into productive investments. However, this stimulating effect is not guaranteed.
Trump's plan leaves analysts and markets in doubt
Trump previously raised the idea of eliminating the federal income tax during an appearance in October 2024 on the Joe Rogan Experience, although Trump, who was campaigning at the time, provided few concrete details about the proposal.
The President of the United States suggested that replacing the federal income tax with revenue from import tariffs would return the U.S. to a time of prosperity seen during the Gilded Age in the 19th century when the U.S. did not have a permanent federal income tax.
