🚨 POLITICAL MARKET SHOCK: TRUMP FLOATS ENDING FEDERAL INCOME TAX
Date: Nov 28, 2025
President Donald Trump has ignited a nationwide debate after hinting that the U.S. could abolish Federal Income Tax in the coming years — funded entirely by massive tariff revenue. 🤯
If this idea moves forward, it would mark one of the most dramatic economic restructurings in modern history, and markets are already reacting.
🔍 What’s Behind the Proposal?
Tariffs as the Main Cash Source: Trump believes aggressive tariffs could eventually replace the $2+ trillion collected from income taxes.
Supporters vs. Critics: Supporters call it bold. Critics argue the math doesn’t support it — and fear consumers will pay more through pricier imports.
Market Shockwaves: Uncertainty around such a shift is stirring volatility across equities, global trade, and especially crypto, which often reacts sharply to policy disruptions.
⚡ The Big Question
Can tariff revenue realistically replace America’s income tax system?
Major Wall Street giants—Deutsche Bank, Morgan Stanley, and JPMorgan—are projecting a massive S&P 500 rally toward 7,500–8,000 by 2026. Two powerful forces are driving this outlook:
The AI Megatrend: The AI boom isn’t slowing down. Like the early internet era, it’s pushing corporate earnings and valuations higher.
A Softer Fed: With inflation cooling, analysts expect more rate cuts. Lower rates increase liquidity and push investors toward riskier assets—tech stocks and crypto included.
Why Crypto Should Care
Crypto and the S&P 500 now move more closely together than ever. When stocks show “risk-on” momentum, money often flows into digital assets too. Morgan Stanley’s Mike Wilson even says we’re already in a “new bull market.”
A strong U.S. stock market + easier Fed policy = a supportive setup for the next big crypto run in 2026.
Bottom Line
Keep an eye on upcoming Fed announcements. Any hint of faster rate cuts could boost both traditional markets and crypto—potentially accelerating the next major bull cycle.
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FAQs
Positive correlation? Crypto often rises when the S&P 500 rises.
TEE coprocessors? Secure hardware that enables private, verifiable off-chain computation—important for scalable Web3 apps.
Who is Mike Wilson? A top strategist at Morgan Stanley known for influential market outlooks.