President Donald Trump has shared an ambitious idea to remove federal income taxes and replace them with a tariff-based system, inspired by how America operated from 1870 to 1913.
He suggests the creation of a new agency, the External Revenue Service (ERS), to manage tariffs and foreign income, aiming to ease the tax load on Americans.
During the 2025 Republican Issues Conference held at Trump National Doral Miami on January 27, Trump detailed his economic plan in front of GOP leaders. This three-day event aimed to shape the legislative priorities of the party.
In his address, Trump noted the historical success of America before 1913, a period when the nation flourished based on tariffs instead of income tax. He described this era as remarkably prosperous for the country.
The amount was so significant that they didn’t know what to do with it all. Teddy Roosevelt managed to fund national parks and other projects—all through tariffs. Income tax only started in 1913,” Trump explained.