Donald Trump never tiptoes around controversy, and his latest brainchild—a world without federal income taxes—has sent shockwaves through political and economic circles alike. 

Did Trump end income tax? Not yet. But he’s planting the seed, fueling speculation with promises of a sweeping overhaul. The plan? Scrap the federal income tax and replace it with tariffs. Simple in theory, but in reality? That’s a whole different beast.

Tariffs: A Clever Disguise or Economic Chaos?

Here’s the skeleton of Trump’s proposal: Instead of the IRS taking a bite out of your paycheck, the government would rake in its revenue through tariffs. His version includes a broad 10% to 20% tax on all imported goods, with China facing a brutal 60% tariff. The idea sounds almost too good to be true—so is it?

Let’s slow down for a second. Tariffs aren’t some miraculous external revenue source; they’re taxes on American importers. And importers don’t just eat those costs—they pass them along to consumers.

As Tax Foundation Vice President Erica York bluntly put it, "Tariffs shrink both the U.S. economy and U.S. incomes." So, sure, you might get a full paycheck, but every trip to the grocery store or the car dealership could feel like highway robbery.

Markets Don’t Like Surprises

Business thrives on predictability. If you know what the tax rate is, you can plan ahead. But tariffs? They’re like shifting sands. One month it’s 10%, next month it’s 15%, and before you know it, companies are scrambling to adjust. Taylor Riggs, co-host of The Big Money Show, made this crystal clear: "If you tell me, ‘10% tariff,’ I can handle that. If you tell me that every month it’s going up by 2.5%, I have a hard time planning around that."

Translation? A constantly moving tax target would throw businesses—and the economy—into a state of permanent uncertainty.

Can the Math Even Work?

Here’s the cold, hard truth: Federal income taxes brought in $2.3 trillion in 2023. That’s almost half of all government revenue. Will Trump get rid of federal income tax and replace it with tariffs? The numbers say no.

Even if he slapped a 20% tariff on everything coming into the country, the U.S. would have to import an astronomical amount of goods to generate enough revenue. And guess what? If tariffs get too high, imports slow down. So instead of raising money, the government could find itself in a financial nosedive.

Some argue that shifting from income-based taxes to consumption-based taxes could rev up productivity. Slatestone Wealth strategist Kenny Polcari thinks scrapping the income tax "encourages people to work more and spend more."

But hold up—if prices skyrocket due to tariffs, will people really feel richer? Or will they just be handing their money over in a different way?

Trump’s IRS Vanishing Act

Trump isn’t just toying with income tax elimination; he’s also gunning for the IRS itself. Biden’s Inflation Reduction Act allocated $80 billion for IRS expansion, funding 87,000 new agents over a decade. Trump’s response? Ship them all to the border. Whether this is a serious policy or just red meat for his base, it taps into deep-seated frustration over taxation and government overreach.

Brilliant Plan or Expensive Mirage?

Trump calls to abolish income tax are shaking things up, but is this a groundbreaking economic revolution or just an illusion? On paper, it sounds like a tax cut. In reality, tariffs function as taxes in disguise, shifting the burden from the IRS to the checkout counter.

Will Trump eliminate income tax? He’s certainly got the willpower, the platform, and the voter enthusiasm to try. But at the end of the day, even a former president can’t rewrite the basic laws of economics.