Will the Trump Administration Abolish the IRS? – Professional Tax Services

Donald Trump plans to terminate the IRS and let other countries pay us via tariffs. He believes that the government will raise so much money through his plan that we will no longer need to pay income tax to the federal government. Howard Lutnick, Trump’s Commerce Secretary, believes eliminating the IRS will also cause interest and mortgage rates to fall.
The plan is to fire about 6,000 IRS employees. Under Elon Musk, the Department of Government Efficiency wants to replace the IRS and other fired federal employees with a state-of-the-art Nvidia SuperPod AI computer system. No specifics have yet to be cited; however, we do know that this advanced system could gain a deeper understanding of taxpayer behavior.
Problems the Trump Administration Must Tackle
The federal government currently raises about $3 trillion a year in income taxes. The United States also currently imports approximately $3 trillion in goods. Therefore, the tariffs would need to replace the $3 trillion lost due to income tax elimination just to break even. Thus, a doubling of the price of goods might not be enough to stabilize the economy at its current level. If the Trump administration can solve this dilemma without causing significant inflation, the elimination of the federal income tax would be a godsend for American households.
Democrats believe that eliminating the IRS would harm federal revenue and tax fairness. Republicans, however, see this as a vital move toward limited government, which would help maintain our Constitution and protect our God-given rights. Prior to Congress outsourcing its responsibility “to coin money, (and) regulate the value thereof” to a newly established private Federal Reserve in 1913, our government was able to meet the needs of our citizens exclusively through tariffs and excise taxes. Can the administration revert to this strategy and establish a thriving economy?
Should income tax be eliminated, the need for informed and knowledgeable tax and financial experts will still exist for state taxes, as well as for investment planning. Remember, we provide unlimited complimentary tax planning advice for our clients.
Professional Tax Services is a locally owned provider serving over 3,800 local residents and businesses. For more information, call 661-259-1967 or visit www.scvprotaxservices.com.