Introduction

For over a hundred years, the federal income tax has funded everything from national defense to highways. So when Donald Trump and some Republican leaders make eye-catching claims about the future of income taxes, many Americans sit up and take notice.

Are memes, hashtags, and cable news commentaries blowing the idea out of proportion? Or is a serious plan taking shape? In this piece, we cut through the chatter to look at the One Big Beautiful Bill tax proposals. You’ll learn whether Trump is packing up the income tax for good—or whether we’re still miles from no taxes on paychecks.

Trump’s Public Tax Proposals

Donald Trump has never minced words about the U.S. tax code. It’s too complicated, he says, and he wants to tear it down and start over. Over the years, he and his team have sketched out sweeping ideas that get people talking:

• Cut the federal income tax to zero for anyone earning less than $150,000 a year.
• Scrap taxes on tips, overtime pay, and Social Security checks.
• Replace income tax with tariffs on imports or a tax that hits what people buy instead of what they earn.

When he’s on stage, Trump sells these ideas as the ultimate paycheck boost for working folks, while sticking it to other countries. That pitch hits home for voters who can’t shake the feeling that the tax code is stacked against them.

Here’s the kicker, though: none of these ideas have turned into rules in the books. They sit on the shelf as wish-list items, showing where Trump wants to go but not how the country will get there.

What the One Big Beautiful Bill (OBBB) Really Does

When the Trump White House rolled the One Big Beautiful Bill tax proposal into law back in July 2025, the President called it a “historic” victory for taxpayers. Yet while the name carries a grand ring, the bill is less a tax revolution than a tidy polish on the 2017 Tax Cuts and Jobs Act (TCJA). Here’s the breakdown.

• Locking in Tax Rates: OBBB makes the 2017 rates official for the long haul. They still stack up as 10%, 12%, 22%, 24%, 32%, 35%, and 37%, and now they’re here to stay.
• Bigger Standard Deduction: Single filers and couples alike will enjoy a heftier standard deduction, which means less income gets taxed in the first place.
• New Targeted Credits:
  • A fresh credit to assist tipped workers
  • Extra tax break for seniors
  • Broader childcare tax credits

• Whispers of Consumption Taxes: OBBB tosses in some footnotes hinting that tariffs and tariffs-like revenue might catch a future Congress’s attention, but the bill stops short of designing those new levies.
• What is Sidesteps: The income tax is still here. Rumors romped that it might vanish, but the proposal never made the cut. The income tax still funds the bulk of Uncle Sam’s bills.

Proposals vs. Reality

That leaves taxpayers with this picture: Trump sells bold ideas, but this one is still shorthand for “change might come someday.” A flat-out, headline-grabbing axe to the income tax would still need every lawmaker on board and a complete makeover of how the nation raises cash. For now, the revenue faucets stay turned to the same familiar tap.

Income tax is still how the government gets air to breathe. It delivers more than $3 trillion every year. You can try to swap it out with tariffs or other tricks, but none can step in without wrecking the economy.

OBBB doesn’t end the income tax. Instead, it keeps the same brackets, throws in more cuts, fresh credits, and gives a polite grin to tariffs.

Picture the income tax like a patient with a bad heart. It is sick and needs serious fixing. Trump’s earlier cuts to IRS teams and enforcement feel like pulling the oxygen tank without replacing the pump. The heart weakens but the doctors have no fresh cure.

Could Income Tax End? The Big Picture

Trump’s dream, shared by a loyal crowd, is to swap income tax for taxes you pay when you buy stuff—like tariffs or a national sales tax. Here’s why the crowd believes it:

He promised to replace income tax with tariffs, even when everyone knows tariffs can’t fill the tax gap by themselves. 

Project 2025, a playbook for conservatives, sketches a two-step escape from income tax, landing on a levy when you spend money.

During his time, Trump fired 20% of the IRS team and still wants fewer agents. That tightens the noose on audits and reports, which might make folks doubt the whole setup.

• State Trends: Republican-led states have cut income taxes dramatically. To make up the money, they are replacing those dollars with higher sales and excise taxes.
• The Danger: If the states keep falling short and the IRS can’t enforce the current rules, lawmakers might decide it’s time for a total revamp of the tax system.

Why Replacing Income Tax Is So Hard

Ending the income tax is more than a matter of votes; it’s a tough economic puzzle:

• Revenue Shortfall: Last year, taxes brought in 17.1% of GDP while spending was 23.4%. That gap is already one of the highest in modern U.S. history when you take out wartime spending. Killing the income tax with no backup plan would make the gap wider.
• Price Hikes: Leaning on tariffs and sales taxes could raise the cost of everyday goods, which would hit low- and middle-income families the hardest.
• Public Jitters: Shutting down the current system and not replacing it with a clear, workable plan could make people doubt the system and their duty to pay it.

Most economists say a careful shift to a consumption tax could succeed, but they warn that tearing down the existing tax system without a strong plan is risky and likely to fail.

Conclusion

So, is Trump income tax elimination happening? The answer is no, not now and not through the One Big Beautiful Bill. Although Trump talks about a nation funded by tariffs, the real picture is much more complicated. The income tax is still what keeps the federal budget afloat, and getting rid of it would take a huge, well-organized push in Congress—something we don’t see on the calendar anytime soon.

For the time being, taxpayers should keep following the existing law: the OBBB keeps the 2017 tax cuts in place and offers some new credits, but the income tax is here to stay. If you need any professional assistance with taxation, reach out to Dimov Wasserman CPA today. Our team stands ready to present expert aid.

FAQs

Is Trump getting rid of the income tax?

No, Trump has proposed reducing or restructuring taxes, but eliminating the income tax entirely has not been enacted.

What is the One Big Beautiful Bill (OBBB)?

The One Big Beautiful Bill (OBBB) is a proposed tax reform package emphasizing lower income taxes and higher tariffs.

Will I still owe income tax in 2026?

Yes, unless major tax legislation is passed, current income tax obligations will continue in 2026.

Could tariffs take the place of the income tax?

In theory tariffs could replace some revenue, but experts agree they cannot fully substitute the federal income tax.