Can Trump Eliminate Personal Income Tax?

Great Reset 45 Comments

Brian Wang; (link fixed)

There is massive cost cutting with DOGE. The scale of the cuts could actually enable eliminating or replacing the $2.4 trillion per year individual income tax. I know the knee jerk reaction is that it cannot be done. This is a deeper dive into it that shows a lot more is possible than people recognize.

45 Replies to “Can Trump Eliminate Personal Income Tax?”

  1. Why would the knee jerk reaction be, “No”?

    It’s a matter of simple math. All the money saved by DOGE, plus getting rid of a bunch of IRS sniveling servants, et voila!

    Ah, right. Stupid [spit] Progs…

    1. Hello, Sask gov’t. Did you ever see the budget and how much comes from personal income tax. Why the hell do we even have it?

      2. As long as there is personal income tax votes can be won by reducing it, even by small increments, or promising to reducei. If it is eliminated a government that faces a compelling need to re-introduce it will lose a lot of support.

    2. I would wait until there actually is a balanced budget and surplus in Canada. In the U S, I wonder if they can even strike a budget as continuing resolutions have been the way they operate for the last number of years. There is some concern the the cuts being proposed by DOGE will not occur under the continuing resolution format. Maybe someone here has more accurate information?

    3. Well … I hope … hope … that the 20yo Giant Nut Sacked DOGErs have written code that will PREVENT any further THEFT of America’s taxpayer largesse. Rooting it out is only HALF the task. The real GOAL should be securing our coffers from any further theft.

  3. Kanaduh really needs a DOGE in the worst way. The thievery of the Liberal Party of Kanaduh is off the charts. And the RCMP do NOTHING about it. FREE SASKABERTA from this kleptocracy.

    1. I AM WITH YOU ALL THE WAY…………….we leave and no more TRANSFER PAYMENTS……wouldn’t that SHOCK THE EAST……..

      1. It would shock Toronto and Montreal. That’s where ALL the money in Ontario and Quebec goes, including transfer payments.

    2. I’ll take an Auditor General with teeth, given the authority to shut down programs that do not comply with the Financial Administration Act, instead of ignored and waved off after pontifications and promises.

      That’d be a good start, the end of the beginning rather than the beginning of the end, with much more to do.

      But the progressives have finally and fully shown their colours to anyone bothering to think, that their entire lifestyles are tied up in big government largesse; grants here, cushy contracts there, the tap always on.

      They’re fighting for themselves, as they are in wrapping themselves in our flag with their outgroup USA and Trump scapegoating by fools ignoring our 500% “dollar for dollar” trade, finding a hill for us to die on to save their phony baloney jobs. Luckily Liberals are probably overconfident, and Carney will likely pull the trigger now that they’ve whittled down the moribund NDP and their lacklustre leader, theirs and his useful idiocy at an end.

  4. (I believe in a small flat tax rate even if it just covers national defence.)
    Until the deficit is fixed and the debt starts to be chopped, the taxpayer has a responsibility to pay some amount.
    Start the shit-flinging…now.

    1. I believe in a small tax AMOUNT, not a rate.

      We have become so indoctrinated that one must pay a percentage of one’s wages to the gov’t. This is ridiculous in the same manner as you don’t pay a rate of your wages to buy groceries.

      That would be the first and most necessary step to keeping taxes low, b/c the unproductive and lazy would no longer be weaponized against the middle class.

      1. I’d keep the flat tax rate and eliminate sales taxes and all the other add-on taxes = small tax amount.

    2. They’ve made a good start at cutting waste and spending, but they have a long way to go before they can afford to eliminate income taxes. First eliminate the deficit, then make substantial progress in paying down the debt.

  5. With more cutting, and strategic tariffs, yes, he could eliminate income tax, which in and of itself also means eliminating the IRS, one less weaponized fed. agency. Win/win.

  6. The U.S. deficit was $1.8 trillion last year, or 6.2% of GDP. The interest on the debt was over $1.1 trillion. And there was no special reason for that deficit — no recession or financial crisis or pandemic.

    When the U.S. comes close to balancing its budget for five years in a row, then maybe it can start dreaming about getting rid of income tax. For now, it’s like a homeless man pricing out Lamborghinis.

    1. Yes, a 61%/annum interest rate.
      I used to think you were just a bad bot, but now its evident that you are a troll in the same stripe as UnMe.

      1. yeahBUTT
        He/she/it is unME, so not knowing that makes you look pretty foolish, butt than you are a banger.

      2. Thanks for displaying your ignorance of fiscal matters, yeahwell…

        Deficit and debt are different. The deficit is the budget shortfall in a single year. The debt is the total net amount that the government owes. Loosely speaking, the debt is the sum of all the deficits through the years. U.S. debt now stands at $33 trillion, which is why the annual interest on the debt is over a trillion dollars.

        When you have that sorted out, we can have an adult discussion.

    2. Now allow me to pierce you logic with reality. The greater the tax revenue, the greater the spending. It’s the cold reality of human nature AND government imperative that the MORE money you have … the more you spend. Look no further than CA … when we have BIG economic years … and the perception is that EVERYONE is a Googlaire making massive salaries … so the government wants in on it. They “deserve a piece of that pie” … so the public worker UNIONS demand Uuuge salaries and unfunded (in the long term) pensions that suck tax dollars away from their traditional purpose. Hence our roads are crumbling, and State is burning. And we’re broke too.

      Yes, you will say that all that can be controlled. To which I’ll reply – bullshit. You cannot overcome primal impulses. Because they will rise again and pierce whatever controls you believe you’ve imposed. The ONLY way you can lose weight is to go on a strict diet. No Tax dollars for YOU. Take the tasty foods out of the larder. It’s the only way.

      1. Love the way you soundly refute something I never said. That strawman is well and truly flattened.

        1. I’d explain it to you … but I need to get back to my chores. Chores that actually matter. The ones Jordan Peterson correctly chastised me to get in order.

  7. If the DOGE and Trump cuts to wasteful spending and related scandals can show a direct connection to being able to dramatically reduce income tax, how will the Democrats campaign against that?

    Canadian Gov’t is super anti American, yet very often follows the American example by having a Canadian version of whatever is all the rage in America, so… when is “Cana DOGE” making its way north?

  8. Make all govt funding at all levels a levy on the use of the dollar (beaver, justie or whatever we call our money). National currencies are based on each nation’s economy and so there is the justification for a levy on our advantages gained through engaging with the economy. Mandate lists of which part of the CAL (Canada Advantage Levy) goes to each level of government .. in-your-face control over government at all levels.

  9. It has been incredibly costly maintaining and supporting both sides of two military engagements. Ending the Russia/Ukraine Dance of Death, and negotiating the end of Iran’s bold sponsorship of every anti-Western terrorist organization in the world will save trillions.

    Sending most of the Biden family, and several prominent Democrats like Samantha Powers to prison for treason would go a long ways to showing the American people what is possible.

  12. From the article:
    US budget = $6.75 trillion
    US federal revenue = $4.918 trillion

    deficit = $1.832 trillion

    to eliminate income tax of $2.426 trillion

    Total expenditure cuts must be $1.8 + 2.4 = $4.2 trillion.
    Or expenditure cuts plus some additional revenue source(s).

    At first pass, I don’t see $4.2 trillion in cuts in the article.

  13. Rather than develop their own resources, some Provincial Governments arrange their economy to keep transfer payments coming. What constitutes transfer payment resources is also arranged by these Governments. Governments are addicted to taxpayer money; they will not willingly surrender income tax.

  14. Amount raised through personal income tax per year: $2.4 trillion.
    Value of goods imported to the U.S. per year: $3.3 trillion.

    => The U.S. would need 73% tariffs on all imported goods to replace personal income tax.

    Some notes:

    o This is before addressing the massive U.S. deficit. They would need far larger tariffs to do that.
    o It assumes that the amount of imports would not change, which of course it would. It would likely plummet, reducing revenue.
    o Other countries would retaliate with their own tariffs, reducing U.S. exports.
    o The price on many goods — especially those that the U.S. is not well suited to producing — would skyrocket.

    Conclusion: The U.S. is not going back to 19th-century fiscal policy.

  15. Social Security consumes $1.3 trillion a year.

    “The government takes every cent of social security taxes collected from current workers and passes the money immediately to current retirees.”

    “Until 2010, workers paid more in Social Security taxes than what the federal government paid out in benefits, but the government spent all that surplus money in other areas.”

    “The government has never saved or invested the social security surplus.”

    “Today, all benefits are paid by current tax collections or borrowing, since Social Security taxes no longer fully cover the cost of benefits.”

    https://www.cato.org/policy-analysis/social-security-trust-fund-myth#introduction

    Given the aging population of the US, and the declining US both rate (1.66 births per woman; stable population birth rate is 2.1) the Social Security drain on the taxpayer will get worse.

  16. From the posted article, the US government spends $1.5 trillion on health care (Medicare = $0.8 trillion, and Medicaid + Obamacare = $0.7 trillion)

    That’s about $4,460 per person.

    Interesting.

  17. The very concept of eliminating or seriously reducing income tax on citizens through tariffs is extremely scary for Socialist or the likes of the EU countries. Imagine suffering the insane tax rates in your country (OK, you don’t have to imagine it) and looking next door to a different system where citizens get to keep most of their earnings and spend it as they see fit… If you control the filthy plebes through taxation, this is the kind of idea you don’t want spreading.

  19. USA introduced income tax 1913.
    Canada 1917..as a temporary measure.
    Seems we really did lose the First World War,as we are still paying.
    So prior to those dates Government functioned,inside their limited mandates,relatively well.
    Those who insist,”Its impossible”..
    Consider this,if Government was not stealing,the citizens would all be better off.
    Richer and so much better able to deal with their own concerns.

    1. “… as a temporary measure.”
      I suppose as long as it does stop at some point it will have been temporary.

  20. The US federal government would have to reduce spending by about 2/3 to eliminate both the deficit and federal income tax. I highly doubt they’re able to cut more than 1/4.

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