The proposal to eliminate federal income taxes could result in significant savings for Americans by replacing them with tariffs and sales taxes.

President Trump has suggested that he wants to eliminate income taxes in favor of tariffs. Eliminating income taxes can provide a major windfall for Americans and make it easier to

"Value-added taxes" are a common type of consumption tax used worldwide. They don't create a trade disadvantage for the U.S., economists said.

President Donald Trump said that large corporations are unconcerned about his sweeping tariff campaign, which had sparked the worst selloff in stocks since the Covid-19 pandemic, and he implied that they are instead focused on a legislative package that would fast-track a renewal of his 2017 tax cuts.

The Trump administration's tariff calculations appear on paper to be a simplified math of America's trade relationships.