"What they're saying: "In the next couple of years, I think we'll substantially be cutting, or maybe cutting out completely, but we'll be cutting income tax," Trump said during an event Thursday evening. "Could be almost completely cutting it because the money we're taking in is going to be so large." The big picture: As the Supreme Court weighs whether Trump's tariffs are even legal, and as administration officials continue to insist tariffs are not a revenue tool, Trump keeps making spending promises with the money."
"Lawmakers who would have to approve any of his various plans have made clear they'd prefer tariff revenue be used for deficit reduction before anything else. Follow the money: The U.S. collected about $195 billion in tariff revenue in fiscal 2025, per Treasury data, and is on track to collect a little more than $400 billion in fiscal 2026. Individual income tax revenue in fiscal 2025 was $2.66 trillion, per the Treasury, and corporate tax revenue another $450 billion."
President Trump projected that tariff receipts will grow so large that they could allow substantial or complete elimination of income tax within a few years. Administration officials and Trump have presented competing messages about the purpose of tariffs, with officials denying tariffs are meant as a revenue tool while Trump promises to spend the proceeds. Lawmakers insist any tariff revenue should first go toward deficit reduction. Treasury data show about $195 billion in tariff revenue in fiscal 2025 and a projected slightly over $400 billion in fiscal 2026, compared with $2.66 trillion in individual income tax revenue and $450 billion in corporate tax revenue in 2025. The Supreme Court could soon rule on the legality of the tariffs.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]