The U.S. president recently floated a bold idea: potentially eliminating income tax altogether, banking on tariff revenues to fill the gap. This proposal represents a massive shift in fiscal strategy, reminiscent of pre-1913 America when tariffs were the primary revenue source.

The math behind this is wild. Current U.S. income tax generates around $2+ trillion annually, while tariff income sits closer to $80-100 billion. Even aggressive tariff hikes would struggle to bridge that canyon without triggering serious trade wars and consumer price inflation.

For markets, this kind of policy shake-up creates uncertainty. Crypto traders should watch closely—major tax overhauls historically drive capital flows as investors hunt for new shelters. If income tax disappears but tariffs spike, imported goods get pricier, potentially pushing inflation higher and influencing Fed decisions on rates.

Whether this becomes reality or just political theater remains uncertain, but the conversation alone signals how unconventional economic thinking is entering mainstream policy debates.