{"id":11502,"date":"2025-04-28T00:23:31","date_gmt":"2025-04-27T22:23:31","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11502"},"modified":"2025-04-28T00:23:31","modified_gmt":"2025-04-27T22:23:31","slug":"trump-promises-significant-tax-cuts-as-tariffs-are-implemented","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/28\/trump-promises-significant-tax-cuts-as-tariffs-are-implemented\/","title":{"rendered":"Trump Promises Significant Tax Cuts as Tariffs Are Implemented"},"content":{"rendered":"

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The President of the United States, Donald Trump, recently stated that federal income taxes could be “notably lowered” or possibly abolished once the tariff system is fully implemented.<\/p>\n

In a post on Truth Social dated April 27, Trump asserted that the emphasis of the alleged tax reductions would be on individuals earning below $200,000 annually.<\/p>\n

The US leader also mentioned that the “External Revenue Service” \u2014 referring to funding the federal government solely through import tariffs rather than the existing method of tax collection via the Internal Revenue Service (IRS) \u2014 is coming to fruition.<\/p>\n

Abolishing the federal income tax would likely act as a favorable driver for asset values, including cryptocurrencies, as the rise in disposable income is expected to partially redirect into productive investments. However, this stimulating effect is not assured.<\/p>\n

Source: <\/em>Donald Trump<\/em><\/a><\/figcaption><\/figure>\n

Related: <\/strong><\/em>If Trump dismissed Powell, what would affect crypto?<\/strong><\/em><\/a><\/p>\n

Analysts and markets express skepticism over Trump\u2019s plan<\/h2>\n

Trump had earlier proposed the idea of abolishing the federal income tax<\/a> during an October 2024 episode of the Joe Rogan Experience,<\/em> despite offering minimal concrete details on the proposal while campaigning.<\/p>\n

The US President indicated that substituting the federal income tax with revenue generated from import tariffs would usher the US back to a period of affluence reminiscent of the Gilded Age in the 19th century, a time when the US did not have a persistent federal income tax.<\/p>\n

Research carried out by accounting automation firm Dancing Numbers discovered that Trump’s initiative could save the average American $134,809<\/a> in lifelong tax contributions.<\/p>\n

Dancing Numbers also noted that tax savings could potentially reach $325,561 per American if other employment-based income taxes are also eliminated.<\/p>\n