Politics
Trump Claims Tariffs Could Leave Income Taxes ‘Completely Eliminated’ for ‘Many People’
By Jake Beardslee · April 28, 2025
Trump Claims Tariffs Could Lead to Major Tax Cuts
President Donald Trump has doubled down on claims that his sweeping tariffs could lead to major tax cuts for Americans, even suggesting that income taxes for many could be "completely eliminated." The White House / Wikimedia
Trump Declares New Tariffs Will Bring "Bonanza for America"
In a Truth Social post Saturday, Trump wrote, “When Tariffs cut in, many people’s Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year. Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!” The White House / Wikimedia
Trump Says Tariffs Will Revitalize U.S. Manufacturing
Since introducing a broad 10% tariff on nearly all imported goods April 2 — and steep country-specific rates like 26% on India and 145% on China — Trump has repeatedly argued that tariffs will drive domestic manufacturing, lessen reliance on foreign imports, and boost the American economy. The White House / Wikimedia
Trump Calls Tariff Strategy a "Total Victory" for America
Speaking to Time magazine last week, Trump defended the tariff strategy, saying that even if a 50% tariff remained after one year, it would represent a "total victory" for the United States. The White House / Wikimedia
Trump: Tariffs Will Make the U.S. "A Fortune"
"Because the country will be making a fortune," Trump said, arguing that nations like China and India prospered by heavily taxing U.S. imports for decades. Chris Linnett / Unsplash
Countries Face 90-Day Deadline for New Trade Deals
Meanwhile, dozens of countries now face a 90-day deadline to negotiate revised trade agreements with Washington or risk even harsher tariff penalties. Pixabay / Pexels
Treasury Secretary Bessent Downplays Market Concerns
Treasury Secretary Scott Bessent addressed growing market concerns about the administration’s policies during an interview on ABC’s This Week. “I don’t think that this is necessarily losing confidence,” Bessent said, describing short-term market reactions as “statistical noise or market noise.” THOMAS CORDY/THE PALM BEACH POST / USA TODAY NETWORK via Imagn Images
Trump Repeats Pledge to Use Tariffs to Fund Tax Cuts
Speaking to reporters on his way back to Washington from his New Jersey golf club, Trump also reaffirmed his belief that tariffs will eventually fund a significant reduction in income taxes. The White House / Wikimedia
Trump: "We’re Going to Make a Lot of Money, and We're Going to Cut Taxes"
“We’re going to make a lot of money, and we’re going to cut taxes for the people of this country,” Trump said, according to Bloomberg, while acknowledging, “It’ll take a little while before we do that.” The White House / Wikimedia
Poll: Americans Skeptical of Trump’s Economic Handling
However, the American public appears increasingly skeptical. A CBS News poll released Sunday found that 69% of Americans feel the Trump administration is not doing enough to lower prices. Approval of Trump's handling of the economy has dropped to 42%, down from 51% in March. Phil Masturzo / USA TODAY NETWORK via Imagn Images
Trump Seeks to Extend and Expand 2017 Tax Cuts
Trump has also called for extending the tax cuts passed during his first term, which are set to expire at the end of 2025. His new proposals include further tax breaks, such as exempting workers’ tips and Social Security earnings, and slashing the corporate tax rate from 21% to 15%. The White House / Wikimedia
Bessent: Trade Talks Progressing With 17 Key Partners
On the trade front, Bessent said negotiations are underway with 17 major trading partners — excluding China — to hammer out bilateral deals. “We have a process in place, over the next 90 days, to negotiate with them,” Bessent said, adding, “Some of those are moving along very well, especially with the Asian countries.” Win McNamee-Pool via Imagn Images
Bessent: China Facing Pressure Under New Tariffs
Regarding China, Bessent reiterated the administration’s stance that Beijing would be forced to the negotiating table under the weight of Trump’s aggressive tariffs. Magda Ehlers / Pexels
Bessent: China's Economy Could "Suddenly Stop" Without U.S. Access
“Their business model is predicated on selling cheap, subsidized goods to the US,” Bessent said. “And if there’s a sudden stop in that, they will have a sudden stop in the economy, so they will negotiate." Kaboompics.com / Pexels
Uncertainty Surrounds U.S.-China Trade Talks
Trump has claimed that talks with China are ongoing, though Beijing has publicly denied this. Bessent said he was unaware whether Trump and Chinese President Xi Jinping had spoken recently. He noted that discussions with Chinese officials last week at global finance meetings in Washington were limited to traditional topics like financial stability. Photographer: Christophe Licoppe / Wikimedia
Bessent: Early Trade Agreements Could Prevent Further Tariffs
Still, Bessent remained optimistic, saying negotiations could begin with “a de-escalation” and lead to “an agreement in principle.” He emphasized that early agreements and good faith behavior by trading partners could prevent tariffs from rising to maximum levels. Treasury Department / Wikimedia
Trump Says He Has Spoken “Many Times” With Xi Amid Ongoing U.S.-China Trade Tensions
The broader trade relationship between the United States and China remains tense. On Friday, President Trump said he had spoken with Chinese President Xi Jinping “many times,” but declined to provide details about their discussions, telling reporters he would reveal more information “at the appropriate time.” The White House / Wikimedia
GOP Pushes Forward With $5.3 Trillion Tax Cut Framework
In early April, congressional Republicans reached an agreement on the framework for a bill that could authorize up to $5.3 trillion in tax cuts over the next decade. Elijah Mears / Unsplash
Navarro Claims Tariff Revenue Will Outpace Tax Cuts
Trump trade adviser Peter Navarro has argued that tariffs could generate more revenue than that figure, though some economists sharply dispute that estimate. Mark Hoffman / USA TODAY NETWORK via Imagn Images
Navarro Projects $6–$7 Trillion in Tariff Revenue Over a Decade
Speaking on Sunday Morning Futures on April 6, Navarro told host Jackie DeAngelis, “These tariff revenues, by the way, Jackie, $600, $700 billion they are going to raise a year, $6 to $7 trillion over the 10-year period. They’re going to help pay for the tax cuts. I’ll tell you this, Jackie. Every single dollar that comes in, in tariff revenues that we take from the foreigners who have been cheating us, are going to go right to the American public in terms of tax cuts and debt reduction.” Gage Skidmore / Wikimedia
Economists Dispute Navarro’s Multi-Trillion Revenue Projection
Several independent economic groups have challenged Navarro’s claim that tariffs announced by President Donald Trump could generate between $6 trillion and $7 trillion in revenue over the next decade — a figure Navarro said would help fund sweeping tax cuts. Kaboompics.com / Pexels
Independent Estimates Place Tariff Revenue Far Lower
The Tax Policy Center, for instance, projects Trump’s announced tariffs could raise approximately $3.5 trillion over 10 years, while the Tax Foundation estimates revenue closer to $2.2 trillion on a conventional basis, or $1.6 trillion after factoring in economic impacts. The Committee for a Responsible Federal Budget forecasts $3 trillion in tariff revenue — falling to $2.7 trillion after accounting for GDP losses. Kaboompics.com / Pexels
Budget Labs Predict Even Lower Revenue After Economic Impacts
Yale University’s Budget Lab predicts $3.1 trillion before factoring in dynamic effects, dropping to about $2.5 trillion afterward. The Penn Wharton Budget Model estimates between $4.13 trillion and $4.6 trillion, depending on future economic conditions. Kaboompics.com / Pexels
Wall Street Journal: Tariffs Extract Wealth From Private Economy
“If you raise $600 billion more a year in revenue for the federal government, you are taking that amount away from individuals and businesses in the private economy,” the Wall Street Journal editorial board wrote in late March. Pixabay / Pexels