Donald Trump has proposed replacing federal income taxes with a tariff-based system, inspired by America’s economy from 1870 to 1913. He suggests creating the External Revenue Service (ERS) to manage tariffs and foreign income, aiming to ease the tax burden on Americans.
Speaking at the 2025 Republican Issues Conference on January 27 at Trump National Doral Miami, Trump outlined his vision to GOP leaders. He highlighted the nation’s prosperity before 1913, when tariffs, not income taxes, funded the government. Trump sees this shift as a path to economic growth, making taxation simpler while reducing reliance on income-based revenue. His plan marks a bold departure from the modern tax system.
