After becoming the President, Donald Trump is taking many important decisions which will impact the US economy. He has been advocating for abolishing the income tax system in the country. Meanwhile, on Monday (January 28), Trump has talked about abolishing the income tax system and increasing tariffs.

Trump proposed to abolish the income tax system at the 2025 Republican Issues Conference held in Doral, Florida on January 27, so that the disposable income of the American citizens can be increased. Disposable income means the income that remains after paying taxes and other social security charges.  

Trump claims that doing so will bring back the system in America ‘due to which America became rich.’

We don't need to tax our citizens: Trump

He said, "It is time for America to return to the system that made us richer and more powerful than ever before. Instead of taxing our citizens to make foreign nations rich, we should tax foreign nations to make our citizens rich."

Tariffs will make America richer: Trump 

The President said, "America is going to be very rich soon. Before 1913, there was no income tax in America and the tariff system made us rich in the past." He claimed that America saw its richest period between 1870-1913 due to tariffs. 

"The United States was so wealthy at that time that the government had to have a commission to decide how to use the money," Trump said, referring to the "Great Tariff Commission" of 1887.

What is tariff?

Tariff is usually imposed by any government on import and export. The duty imposed on the import of goods is also called tariff. There are two benefits of tariff. First, the government gets revenue from it and second, domestic manufacturers benefit as the price of goods manufactured in the country is lower than imported ones.