A new study by accounting automation firm Dancing Numbers reveals that former U.S. President Donald Trump’s proposal to replace federal income taxes with tariffs could save the average American at least $134,809 over their lifetime.
The savings could climb to $325,561 per person if state-level wage-based income taxes are also eliminated, the report notes.
The research indicates that residents of states with high tax burdens—such as New Jersey, New York, Connecticut, Illinois, and Massachusetts—would benefit the most from the proposed tax relief.
20% Tax Refund Proposed Ahead of Income Tax Repeal
Dancing Numbers founder Punit Jindal suggested that the plan could be preceded by a 20% “DOGE Dividend” tax refund, providing immediate savings before a full repeal of federal income taxes is implemented.
Trump first introduced the idea of eliminating federal income taxes in October 2024, proposing to fund the government through tariffs on imported goods.
He drew parallels to the 19th-century U.S. economy, which was largely funded by tariffs before the establishment of permanent income taxes.
During a recent appearance on the Joe Rogan Experience, Trump emphasized that tariffs historically contributed to American wealth and economic independence.
Supporters argue that removing income taxes could stimulate markets, as individuals may invest their savings, potentially boosting asset prices.
Proponents also claim that the plan could counteract potential cost increases from reciprocal trade tariffs.
However, critics caution that reliance on tariffs may lead to higher consumer prices for imported goods.
Newly appointed Commerce Secretary Howard Lutnick, confirmed in February 2025, echoed Trump’s sentiments, advocating for replacing the Internal Revenue Service (IRS) with an “external revenue service” focused on tariff collection.
“At the start of the 20th century, America was the richest country on Earth, defending its workers with fair trade policies,” Lutnick stated.
“Now, politicians overspend and ask taxpayers for more every year—this plan seeks to change that.”
Coinbase CEO: Trump’s Crypto Plans Spark Buzz in Crypto
Last month, Coinbase CEO Brian Armstrong said U.S. President Donald Trump’s crypto agenda has become a central topic of discussion across the crypto industry, financial markets, and the tech world.
Reflecting on his recent time at the World Economic Forum (WEF) in Davos, Armstrong revealed that conversations with major market leaders were dominated by Trump’s plans for digital assets.
“Basically, every conversation I had with major market leaders was focused on what the Trump administration planned to do on crypto,” Armstrong said.
He added that Trump’s bold vision is pushing industry players to step up, with many striving to avoid being left behind in the rapidly evolving landscape.
During the WEF, Trump pledged to make the United States the “world capital of artificial intelligence and crypto.”
This commitment, one of his first public statements since taking office on Jan. 20, has set a transformative tone for the industry.
Armstrong praised Trump’s approach, along with the leadership of Argentina’s President Javier Milei and El Salvador’s President Nayib Bukele, for embracing free markets as drivers of prosperity.
Among Trump’s speculated plans is the creation of a Strategic Bitcoin Reserve, though his latest executive order hints at a broader vision.
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