Trump claims tariffs could ‘eliminate’ taxes for most of Americans, but experts argue the math doesn’t add up

president Donald Trump says the tariff can provide a financial surprise for ordinary Americans – by eliminating their income taxes.

“When the definitions are reduced, taxes of many people’s income will be dramatically reduced, and perhaps until they are completely canceled,” Trump announced in a social publication on April 27. “The focus will be on people who get less than $ 200,000 a year.”

This is a bold promise, especially given that only 14.4 % of American families got more than $ 200,000 annually in 2023, according to the statistical office data. In other words, if Trump’s vision is correct, the vast majority of Americans will not pay any tax at all.

But do not celebrate yet. While Trump is optimistic, experts say mathematics simply does not add up.

Economists Erica York and Hokn Lee of the Tax Corporation were explained in a response on April 28 that “the individual income tax increases more than 27 times the revenue of customs tariffs currently”, and “canceling income taxes for a sub -group of taxpayers, such as those who get $ 200,000 or less, requires greatly higher alternative returns than the lists of departments.”

They estimate that the customs tariff imposed by Trump and its skin as of 2025 will generate approximately $ 167 billion of new federal tax revenues in 2025 – cover less than 25 % of the cost of canceling income taxes for people of less than $ 200,000.

While Trump’s proposal faces serious doubts, the changes in politics are not the only way to reduce tax bills. Below is a strong prize that ordinary investors can use for them.

“If you are trying to build wealth, you have” obligatory to pay little taxes, “said Scott Galway, Professor of Marketing at the New York University School of Business.

His advice? It remains simple: “You buy stocks, and never sell them, you are borrowing them.”

Galloway broke it an example: “You have $ 100 in Amazon shares. [tax] On that earned $ 50. No, just borrow against it and let the arrows continue to grow. “