President Donald Trump has unveiled a bold proposal to eliminate federal income taxes and replace them with a tariff-based system, drawing inspiration from the way America operated between 1870 and 1913. He envisions a return to a revenue model that once fueled the nation’s economic prosperity.
Central to his plan is the creation of a new agency, the External Revenue Service (ERS), which would manage tariffs and foreign income. By shifting the focus from income taxes to tariffs, Trump aims to alleviate the tax burden on American citizens and stimulate economic growth.
Trump detailed this economic strategy during the 2025 Republican Issues Conference at Trump National Doral Miami on January 27. Over the course of the three-day event, he addressed GOP leaders and outlined his vision to reshape the legislative priorities of the party.
In his address, Trump pointed to the pre-1913 era as a model of success, noting that the nation thrived when tariffs were the primary source of revenue. He recalled that the revenue from tariffs was so substantial that, as President Teddy Roosevelt demonstrated, it funded national parks and various public projects. “Income tax only started in 1913,” Trump explained, emphasizing that returning to a tariff-based system could once again unlock significant economic potential. READ MORE BELOW
