Is Trump Really Axing Income Tax? The Facts Behind 2025 Tax Talks

Introduction

Lately, social media and political chatter keep circling back to the same eye-catching question: “Is Trump planning to kill the federal income tax?” His campaign rallies keep mentioning a “One Big Beautiful Bill” that promises sweeping tax changes, and a new wave of tariff ideas makes the income tax sound yesterday’s news. So, it’s no surprise that a lot of everyday taxpayers are wondering if the annual April agony is about to end—or if we’re just watching a rerun of political Showtime.

This post cuts through the noise to show what’s already on the books, what Congress has actually voted on, and what’s still just talk. We’ll sift through Trump’s campaign promises and the policy wonk stuff to show what the U.S. tax scene is likely to look like in 2025.

Trump’s Public Tax Proposals

Donald Trump has consistently made noise about rewriting the tax rulebook in a way that would shrink the federal income tax to a whisper. Here are the big ideas that keep popping up alongside his name:

• No income tax for the average voter: Trump keeps mentioning a plan that would let anyone making under $150,000 skip the federal income tax bill entirely.
• Eliminating taxes on tips, overtime, and Social Security benefits sounds good on paper. The idea is that working Americans would see more cash in their pockets every payday.
• Replacing income tax with tariffs is a bold move. The plan is to get rid of income tax completely and fund the government solely with taxes on stuff we bring in from other countries. The last time the U.S. used only tariffs for revenue was before the First World War.

These bold ideas catch the eye because they seem like they could lighten the average person’s tax burden. Yet none of them has ever been put into practice. The federal income tax, for now, is still the biggest single source of money the government collects.

“One Big Beautiful Bill” (OBBB) — What It Actually Does

In July 2025, Trump signed the much-debated One Big Beautiful Bill tax proposal, branded as a new dawn for tax reform. The truth, however, is that the bill leaves the income tax in place. Here’s the rundown:

• The 2017 Tax Cuts and Jobs Act (TCJA) now sticks around. The lower tax rates we were enjoying before (10%, 12%, 22%, 24%, 32%, 35%, 37%) won’t work their way back up in 2025 like they were supposed to.
• The standard deduction got a new bump. Families and single filers alike will see a higher dollar-for-dollar reduction in their taxable income, giving extra breathing room to middle-class households.
• The plan adds a few new tax credits: one for retirees, a break for childcare expenses, and a special credit aimed at workers who earn most of their pay in tips. These credits aim to give targeted help to specific groups without overhauling every tax bracket.
• The bill also hints at a long-term push away from taxes on earnings. While it stops short of a national sales tax, it encourages policymakers to keep thinking about taxes based on what people buy or on tariffs.

Proposals vs. Reality

So did Trump income tax elimination happen? Not at all. And, barring a huge political shift, it’s not about to vanish. Here’s what you still have:

• The income tax brackets are still on the books. For 2025, they are the same as under the last major tax cut, with rates from 10% to 37%.
• U.S. tariffs alone can’t pay for the entire government. Even in the best-case scenario, strong tariffs would still fall short of the $3–4 trillion that income tax brings in every year.
• A full repeal of the income tax would need more than this bill. Congress would have to rewrite the entire tax code, a task that involves hundreds of lawmakers and a long list of interest groups.

Bottom line: Income tax isn’t going anywhere for a long while.

Could Income Tax End?

Most economists and tax experts say it’s nearly impossible to eliminate the income tax for good, and they point to a few big reasons:

• Government Income: In 2024, the IRS brought in $2.2 trillion from the income tax alone. That’s half of what the federal government takes in each year.
• Price and Fairness Issues: If lawmakers replace income tax with tariffs or a federal sales tax, prices at the checkout line could rise. Low-income families would feel the pinch the hardest, since they spend a larger share of their paychecks on essentials.
• Budget Worries: Tax experts warn that ditching the income tax without a strong, steady replacement would push the national deficit to dangerous heights, raising the chances of a financial crisis.

Still, many conservatives love the idea of simpler tax rules and a smaller IRS. Cutting IRS staffing, lowering audit rates, and trimming back taxpayer help could let more people skip the fine print, causing chatter that a sales-based tax might take income tax’s place someday.

For now, don’t hold your breath for change. You’ll fill out your federal income tax forms just like usual in 2026. The five tax brackets will look familiar, and the main changes will be the extended cuts from the 2017 Tax Cuts and Jobs Act and possibly bigger standard deductions.

If any future president really wanted to swap income taxes for high tariffs, we would be in for a long ride. The plan would require many, many months of careful transition work, a thick stack of new laws, and maybe even some tough legal tests in court. Hint: we are not talking about a quick switch, or even a done deal by 2026.

Conclusion

Right now, even with splashy headlines and big campaign talk, we can safely bet the federal income tax will still be in our lives for years to come. Donald Trump and some Republican leaders did move the needle a bit with the One Big Beautiful Bill tax proposal, but they did not shake the income tax tree hard enough to make it fall.

The most important message is simple: what candidates promise can look very different from what actually gets written in law. Make it a habit to check what Congress passes, not what someone says on a microphone.

Concerned about shifting tax rules and their audit risk? Dimov Audit will review your exposure, model scenarios, and deliver a clear action plan before the next filing season. Reach out to us today for full compliance.

FAQs

Is Trump getting rid of income tax?

No—federal income tax remains in place; no law has repealed it.

What is the One Big Beautiful Bill (OBBB)?

A 2025 law (Public Law 119-21) that extends prior rate cuts and adds credits/deductions—without abolishing income tax.

Will I have to pay income tax in 2026?

Yes—current law keeps federal income tax and brackets in effect for 2026.

Could tariffs replace income tax?

Highly unlikely—experts say tariffs can’t raise comparable revenue without sharply raising prices.