President Donald Trump has shared an ambitious idea to remove federal

income taxes and replace them with a tariff-based system, inspired by how America operated from 1870 to 1913.

He suggests the creation of a new agency, the

External Revenue Service (ERS), to manage tariffs and foreign income, aiming to ease the tax load on Americans.

Trump’s Vision for a Tariff-Based Economy
During the 2025 Republican Issues Conference held at Trump National Doral Miami on January 27, Trump detailed his economic plan in front of GOP leaders. This three-day event aimed to shape the legislative priorities of the party.

In his address, Trump noted the historical success of America before 1913, a period when the nation flourished based on tariffs instead of income tax. He described this era as remarkably prosperous for the country.