The possibility of replacing income tax with tariffs is gaining traction, according to former President Donald Trump who recently spoke with Fox News’ Rachel Campos-Duffy.
During the interview, which will air in full Tuesday afternoon on Fox Noticias at 4 p.m. ET, Trump suggested a return to historical practices. “There’s a real chance,” he stated. He pointed to the period between 1870 and 1913 when tariffs were the sole source of government funding, claiming that era was one of unprecedented prosperity for the nation.
Trump further elaborated on this concept, referencing an alleged historical committee formed in the 1880s. “And this committee’s sole purpose was how to dispose of it [revenue], who to give it to, what do we do?” he recounted. He asserted that the establishment of the income tax system in 1913 marked a shift away from this model and attempted revivals of tariffs proved unsuccessful by the early 1930s.
The conversation also touched on the financial impact of existing tariffs, with Trump highlighting substantial gains. “Billions and billions of dollars and hundreds of billions of dollars over a period of a year,” he said, noting a temporary adjustment to avoid disrupting ongoing transitions. “We were making two billion and three billion dollars a day. We never made money like that.”
Beyond economic matters, Trump addressed potential solutions for dealing with violent criminals. Praising El Salvador President Nayib Bukele’s efforts in maintaining security, he stated: “He’s made it a very safe place… He’s also built very big prisons.”
- Trump indicated openness to utilizing El Salvador’s prison system to house American criminals.
- He specifically mentioned the possibility of sending “homegrown” offenders to these facilities, attributing their entry into the U.S. to policies implemented by the Biden administration.
The Trump administration recently paused a series of tariffs initially imposed on numerous countries, despite previous statements indicating no such pause would occur. Simultaneously, tariffs on China were increased to 125%.
Current efforts are focused on negotiating trade agreements with foreign nations aimed at reducing the U.S. trade deficit and bolstering economic performance. While these tariffs have generated significant revenue, they have also caused market instability and raised concerns about a potential recession.
“We’re diving into negotiations with foreign nations to strike deals that are beneficial to the U.S.,” an official stated.
This report was contributed to by Fox News’ Emma Colton and David Rutz.
