On the campaign trail last year, now-president Donald Trump floated the idea of abolishing the federal income tax, replacing it with tariffs and other taxes on foreign nations.
In a January speech, the president mentioned the idea saying the U.S. economy was stronger before a national income tax.
“We had no income tax. The income tax came in 1913. As I said in my speech last week, instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens,” Trump said, according to a report on Fox Business.
“It’s time for the United States to return to the system that made us richer and more powerful than ever before,” he said. “You know, the United States in 1870 to 1913, all tariffs. And that was the richest period in the history of the United States, relatively speaking.”
However, many economists and policy experts have pushed back on the idea as unrealistic (due primarily to the fact that tariffs on imported goods won’t generate enough revenue to replace income taxes).
“Higher tariffs would presumably require more of an enforcement network than we have now but wouldn’t involve the likes of people filing annual income tax returns with all their deductions and then being audited,” Daniel Shaviro, professor of taxation at the New York University School of Law, told Newsweek last month.
When asked whether tariffs could be sufficiently enforced to replace income tax as a source of government revenue, Shaviro said: “In a word, no.”
Kimberly Clausing, economist and professor of tax law and policy at the UCLA School of Law, said “even very high tariffs could only replace a minority of the revenue raised by income taxation, and such high tariffs would cripple the economy.”
“Abolishing the IRS makes no sense for a modern country that would like to collect some income tax revenue and have a fair and well-functioning tax system to help fund public services,” Clausing told Newsweek when asked about the potential elimination of the agency. “The U.S. is a low tax country, collecting much less revenue as a share of GDP than peer nations.”
In 2023, U.S. Treasury data shows federal income taxes accounted for $4.92 trillion.
If you’re curious what your paycheck would look like if Trump nixed the federal income tax, GOBankingRates compiled data to determine what checks and income would look like, state by state.
To generate the income tax for every state, GOBankingRates said it first found incomes based on 2023 American Community Survey median household figures and income tax estimates using an in-house calculator for a person as a single filer and using the standard deduction (with 2024 tax brackets). Once the income taxes (federal and state) were calculated as an annual amount, GOBankingRates found each state’s:
- Total annual income taxes paid;
- Total income tax burden;
- Amount takin out of biweekly paycheck; and
- Biweekly paycheck amount.
GOBankingRates said it then took these figures and removed the federal income taxes (including FICA) to see what paychecks would look like by state without federal income taxes. All data was collected on and is up to date as of Feb. 4, 2025, according to GOBankingRates.
In California, where median household income is $73,235, the cut would save some $723. In Hawaii, eliminating federal income tax would save $758 bi-weekly. In Alabama, the difference would be an extra $360.
The following is how paychecks could differ without a federal income tax for each state, according to GOBankingRates:
Alabama
- Median household income: $50,536
- Total income taxes for single filer: $12,264
- State income tax for single filer: $2,911
- Biweekly check with all taxes: $1,472
- Biweekly check with no federal tax: $1,832
Alaska
- ,Median household income: $77,640
- Total income taxes for single filer: $17,434
- State income tax for single filer: $0
- Biweekly check with all taxes: $2,316
- Biweekly check with no federal tax: $2,986
Arizona
- Median household income: $58,945
- Total income taxes for single filer: $14,819
- State income tax for single filer: $1,557
- Biweekly check with all taxes: $1,697
- Biweekly check with no federal tax: $2,207
Arkansas
- Median household income: $47,597
- Total income taxes for single filer: $11,070
- State income tax for single filer: $2,360
- Biweekly check with all taxes: $1,405
- Biweekly check with no federal tax: $1,740
California
- Median household income: $73,235
- Total income taxes for single filer: $23,902
- State income tax for single filer: $5,113
- Biweekly check with all taxes: $1,974
- Biweekly check with no federal tax: $2,697
Colorado
- Median household income: $72,331
- Total income taxes for single filer: $21,143
- State income tax for single filer: $3,426
- Biweekly check with all taxes: $1,969
- Biweekly check with no federal tax: $2,650
Connecticut
- Median household income: $78,444
- Total income taxes for single filer: $22,876
- State income tax for single filer: $4,407
- Biweekly check with all taxes: $2,137
- Biweekly check with no federal tax: $2,848
Delaware
- Median household income: $68,287
- Total income taxes for single filer: $19,530
- State income tax for single filer: $4,237
- Biweekly check with all taxes: $1,875
- Biweekly check with no federal tax: $2,463
Florida
- Median household income: $55,660
- Total income taxes for single filer: $11,875
- State income tax for single filer: $0
- Biweekly check with all taxes: $1,684
- Biweekly check with no federal tax: $2,141
Georgia
- Median household income: $58,700
- Total income taxes for single filer: $16,198
- State income tax for single filer: $3,440
- Biweekly check with all taxes: $1,635
- Biweekly check with no federal tax: $2,125
Hawaii
- Median household income: $81,275
- Total income taxes for single filer: $26,872
- State income tax for single filer: $7,183
- Biweekly check with all taxes: $2,092
- Biweekly check with no federal tax: $2,850
Idaho
- Median household income: $55,785
- Total income taxes for single filer: $15,751
- State income tax for single filer: $3,222
- Biweekly check with all taxes: $1,540
- Biweekly check with no federal tax: $2,022
Illinois
- Median household income: $65,886
- Total income taxes for single filer: $18,899
- State income tax for single filer: $4,044
- Biweekly check with all taxes: $1,807
- Biweekly check with no federal tax: $2,379
Indiana
- Median household income: $56,303
- Total income taxes for single filer: $13,696
- State income tax for single filer: $2,137
- Biweekly check with all taxes: $1,639
- Biweekly check with no federal tax: $2,083
Iowa
- Median household income: $60,523
- Total income taxes for single filer: $16,579
- State income tax for single filer: $4,016
- Biweekly check with all taxes: $1,690
- Biweekly check with no federal tax: $2,173
Kansas
- Median household income: $59,597
- Total income taxes for single filer: $15,864
- State income tax for single filer: $3,483
- Biweekly check with all taxes: $1,682
- Biweekly check with no federal tax: $2,158
Kentucky
- Median household income: $50,589
- Total income taxes for single filer: $11,813
- State income tax for single filer: $2,370
- Biweekly check with all taxes: $1,491
- Biweekly check with no federal tax: $1,855
Louisiana
- Median household income: $49,469
- Total income taxes for single filer: $10,973
- State income tax for single filer: $1,970
- Biweekly check with all taxes: $1,481
- Biweekly check with no federal tax: $1,827
Maine
- Median household income: $57,918
- Total income taxes for single filer: $15,674
- State income tax for single filer: $3,612
- Biweekly check with all taxes: $1,625
- Biweekly check with no federal tax: $2,089
Maryland
- Median household income: $84,805
- Total income taxes for single filer: $25,347
- State income tax for single filer: $4,655
- Biweekly check with all taxes: $2,287
- Biweekly check with no federal tax: $3,083
Massachusetts
- Median household income: $81,215
- Total income taxes for single filer: $25,416
- State income tax for single filer: $5,067
- Biweekly check with all taxes: $2,146
- Biweekly check with no federal tax: $2,929
Michigan
- Median household income: $57,144
- Total income taxes for single filer: $14,890
- State income tax for single filer: $3,024
- Biweekly check with all taxes: $1,625
- Biweekly check with no federal tax: $2,082
Minnesota
- Median household income: $71,306
- Total income taxes for single filer: $21,061
- State income tax for single filer: $4,503
- Biweekly check with all taxes: $1,933
- Biweekly check with no federal tax: $2,569
Mississippi
- Median household income: $45,081
- Total income taxes for single filer: $10,058
- State income tax for single filer: $2,003
- Biweekly check with all taxes: $1,347
- Biweekly check with no federal tax: $1,657
Missouri
- Median household income: $55,461
- Total income taxes for single filer: $13,674
- State income tax for single filer: $2,428
- Biweekly check with all taxes: $1,607
- Biweekly check with no federal tax: $2,040
Montana
- Median household income: $54,970
- Total income taxes for single filer: $14,447
- State income tax for single filer: $3,018
- Biweekly check with all taxes: $1,559
- Biweekly check with no federal tax: $1,998
Nebraska
- Median household income: $61,439
- Total income taxes for single filer: $16,288
- State income tax for single filer: $3,250
- Biweekly check with all taxes: $1,737
- Biweekly check with no federal tax: $2,238
Nevada
- Median household income: $60,365
- Total income taxes for single filer: $13,082
- State income tax for single filer: $0
- Biweekly check with all taxes: $1,819
- Biweekly check with no federal tax: $2,322
New Hampshire
- Median household income: $76,768
- Total income taxes for single filer: $18,752
- State income tax for single filer: $0
- Biweekly check with all taxes: $2,231
- Biweekly check with no federal tax: $2,953
New Jersey
- Median household income: $82,545
- Total income taxes for single filer: $24,699
- State income tax for single filer: $4,312
- Biweekly check with all taxes: $2,225
- Biweekly check with no federal tax: $3,009
New Mexico
- Median household income: $49,754
- Total income taxes for single filer: $11,364
- State income tax for single filer: $2,049
- Biweekly check with all taxes: $1,477
- Biweekly check with no federal tax: $1,835
New York
- Median household income: $68,486
- Total income taxes for single filer: $19,734
- State income tax for single filer: $4,047
- Biweekly check with all taxes: $1,875
- Biweekly check with no federal tax: $2,478
North Carolina
- Median household income: $54,602
- Total income taxes for single filer: $13,969
- State income tax for single filer: $2,572
- Biweekly check with all taxes: $1,563
- Biweekly check with no federal tax: $2,001
North Dakota
- Median household income: $64,894
- Total income taxes for single filer: $13,838
- State income tax for single filer: $324
- Biweekly check with all taxes: $1,964
- Biweekly check with no federal tax: $2,483
Ohio
- Median household income: $56,602
- Total income taxes for single filer: $12,701
- State income tax for single filer: $1,200
- Biweekly check with all taxes: $1,688
- Biweekly check with no federal tax: $2,131
Oklahoma
- Median household income: $52,919
- Total income taxes for single filer: $12,413
- State income tax for single filer: $2,531
- Biweekly check with all taxes: $1,558
- Biweekly check with no federal tax: $1,938
Oregon
- Median household income: $62,818
- Total income taxes for single filer: $20,837
- State income tax for single filer: $6,496
- Biweekly check with all taxes: $1,615
- Biweekly check with no federal tax: $2,166
Pennsylvania
- Median household income: $61,744
- Total income taxes for single filer: $15,638
- State income tax for single filer: $2,336
- Biweekly check with all taxes: $1,773
- Biweekly check with no federal tax: $2,285
Rhode Island
- Median household income: $67,167
- Total income taxes for single filer: $18,824
- State income tax for single filer: $2,843
- Biweekly check with all taxes: $1,859
- Biweekly check with no federal tax: $2,474
South Carolina
- Median household income: $53,199
- Total income taxes for single filer: $13,260
- State income tax for single filer: $2,649
- Biweekly check with all taxes: $1,536
- Biweekly check with no federal tax: $1,944
South Dakota
- Median household income: $58,275
- Total income taxes for single filer: $12,232
- State income tax for single filer: $0
- Biweekly check with all taxes: $1,771
- Biweekly check with no federal tax: $2,241
Tennessee
- Median household income: $53,320
- Total income taxes for single filer: $10,681
- State income tax for single filer: $0
- Biweekly check with all taxes: $1,640
- Biweekly check with no federal tax: $2,051
Texas
- Median household income: $61,874
- Total income taxes for single filer: $13,358
- State income tax for single filer: $0
- Biweekly check with all taxes: $1,866
- Biweekly check with no federal tax: $2,380
Utah
- Median household income: $71,621
- Total income taxes for single filer: $21,731
- State income tax for single filer: $4,226
- Biweekly check with all taxes: $1,919
- Biweekly check with no federal tax: $2,592
Vermont
- Median household income: $61,973
- Total income taxes for single filer: $16,959
- State income tax for single filer: $3,212
- Biweekly check with all taxes: $1,731
- Biweekly check with no federal tax: $2,260
Virginia
- Median household income: $74,222
- Total income taxes for single filer: $22,047
- State income tax for single filer: $4,514
- Biweekly check with all taxes: $2,007
- Biweekly check with no federal tax: $2,681
Washington
- Median household income: $73,775
- Total income taxes for single filer: $18,374
- State income tax for single filer: $0
- Biweekly check with all taxes: $2,131
- Biweekly check with no federal tax: $2,838
West Virginia
- Median household income: $46,711
- Total income taxes for single filer: $10,624
- State income tax for single filer: $2,085
- Biweekly check with all taxes: $1,388
- Biweekly check with no federal tax: $1,716
Wisconsin
- Median household income: $61,747
- Total income taxes for single filer: $16,130
- State income tax for single filer: $2,918
- Biweekly check with all taxes: $1,755
- Biweekly check with no federal tax: $2,263
Wyoming
- Median household income: $64,049
- Total income taxes for single filer: $13,200
- State income tax for single filer: $0
- Biweekly check with all taxes: $1,956
- Biweekly check with no federal tax: $2,463
With Tribune News Services
Photo caption: President Donald Trump walks across the lawn of the White House on Aug. 21, 2019. (Tennessee Witney/Alamy Stock Photo)
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Jeff Downhour February 27 2025 at 12:17 pm
This seems like accounting malpractice to state reductions without Cleary explaining the massive implications.