by Emmitt Barry, with reporting from Washington D.C. Bureau Staff
WASHINGTON D.C. (Worthy News) – President Donald Trump said on Nov. 27 that the United States could “substantially” reduce — and potentially eliminate — federal income taxes within the next few years, citing what he described as unprecedented revenue generated from his tariff policies.
Speaking during a Thanksgiving call with U.S. service members, Trump said tariffs imposed on foreign imports have brought in “hundreds of billions of dollars,” encouraged companies to relocate manufacturing to America, and created enough fiscal capacity to consider deep tax cuts.
He said a portion of the revenue is expected to function “as a sort of dividend to our people,” while much of it would go toward reducing the national debt. “Over the next couple of years, I think we’ll substantially be cutting and maybe cutting out completely … income tax,” Trump said. “The money we’re taking in is going to be so large.”
Trump reiterated similar remarks he made in April, when he suggested that Americans earning under $200,000 a year might see their income taxes reduced or “completely eliminated” once tariff collections matured.
According to the Penn Wharton Budget Model, the United States has collected more than $320 billion in customs and excise taxes as of November — nearly double the roughly $171 billion collected at the same point in 2024. The increase stems from Trump’s baseline 10 percent import tariff and a set of reciprocal duties that have pushed the average U.S. tariff rate to 17.6 percent.
The Tax Policy Center estimates Trump’s 2025 tariff actions will generate about $2.3 trillion from 2026-2035 and add roughly $256 billion to federal receipts next year, though it warns the projections come with “high uncertainty.”
In a Nov. 24 Truth Social post, Trump argued that tariff revenues will grow even more sharply as global buyers exhaust the excess inventory they previously stockpiled to avoid tariff payments. Once those buffers shrink, he said, “Tariffs will be paid on everything they apply to … and the amounts payable to the USA will SKYROCKET.”
“These payments will be RECORD SETTING,” Trump wrote, “and put our Nation on a new and unprecedented course.”
Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
Latest News from Worthy News
Nigerian police have confirmed that a large group of Christian worshippers were kidnapped by suspected Muslim gunmen from three churches in a remote area of Nigeria’s northern Kaduna State, reversing an earlier denial that authorities said had been “widely misinterpreted.”
President Donald Trump called off tariffs on U.S. allies opposed to his plans to annex Greenland after announcing a tentative deal with NATO Secretary General Mark Rutte for a future deal on Greenland.
Israeli Prime Minister Benjamin Netanyahu has accepted an invitation from U.S. President Donald Trump to join the newly proposed Board of Peace, his office confirmed Wednesday, as a growing number of European governments signaled they will not participate in the initiative.
President Donald Trump said the United States is pursuing negotiations to acquire Greenland while ruling out the use of military force, framing the controversial proposal as a necessary security measure rather than an economic or mineral-driven ambition.
Gold prices surged to a record high on Wednesday as investors sought safety the deepest crisis in the transatlantic alliance in decades with U.S. President Donald J. Trump saying Europe “is not heading in the right direction.”
U.S. President Donald J. Trump marked one year since returning to the White House with a wide-ranging and often confrontational press conference, defending his record while renewing criticism of political opponents, major media outlets, and several U.S. allies.
Thousands in Ukraine’s capital braced for a bitter winter night late Tuesday after Russian forces unleashed another deadly barrage of missiles and drones that severely damaged critical infrastructure and worsened a deepening humanitarian crisis. The winter offensive has knocked out power, water, and heating across much of Kyiv, officials said.