President Donald Trump has sparked debate by suggesting that revenue from his proposed tariffs could potentially replace federal income taxes.

In a recent statement, Trump claimed, "There is a chance that the money from tariffs could be so great that it would replace income tax," reigniting discussions about his long-standing affinity for tariffs as a fiscal tool.

Trump’s tariff plans include a 10% baseline tax on all imports, with higher rates—like 60% on Chinese goods—targeting nations with trade surpluses. He argues these measures could generate substantial revenue while boosting domestic manufacturing.

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However, experts question the feasibility of this idea. In 2023, the U.S. collected $2.2 trillion from income taxes, while tariffs yielded roughly $80 billion. Replacing income tax revenue would require tariffs to increase dramatically, potentially by 70% or more across all imports, according to analyses from the Tax Foundation and Peterson Institute. Such hikes could shrink imports, reducing revenue and raising consumer prices, hitting lower-income households hardest.

Critics, including economists Kimberly Clausing and Erica York, call the plan "mathematically impossible," citing risks of inflation, trade wars, and economic slowdown. Supporters, however, see tariffs as a way to reduce reliance on income taxes and penalize foreign trade practices. Trump’s vision harks back to the pre-1913 era when tariffs funded much of the government, though federal spending was a fraction of today’s levels.

As Congress gears up to debate extending Trump’s 2017 tax cuts, the tariff proposal faces skepticism from both parties. While innovative, its economic viability remains uncertain, with no clear timeline for implementation.

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