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They say death and taxes are life’s only certainties — but according to President Donald Trump, a significant part of the latter could be on the chopping block.
Speaking to U.S. military service members in November, Trump floated the idea of eliminating income taxes entirely, funded by what he described as massive new tariff revenues (1).
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Trump noted that tariffs have pulled in “hundreds of billions” in duties, and went on to claim, “Next year it’ll be a trillion dollars or more.” It was unclear whether this prediction refers solely to tariff revenue, or if it would also include money generated from the relocation of manufacturing operations — like cars — to U.S. soil.
Regardless, the president seemed convinced that tariffs would be a big win for the American people in the next few years.
“I think we’ll substantially be cutting and maybe cutting out completely, but we’ll be cutting income tax,” he said. “Could be almost completely cutting it because the money we’re taking in is going to be so large.”
It’s a bold proposal, especially given that income tax is the federal government’s single largest source of revenue.
In fiscal year 2025, the federal government collected $2.656 trillion in individual income taxes — about 50.7% of Uncle Sam’s total $5.235 trillion in receipts. By comparison, corporate income taxes brought in $452 billion and tariff revenue from custom duties totaled just $195 billion (2). That’s still a far cry from Trump’s trillion dollar claim.
Critics quickly pointed out the gap.
Economist Erica York of the Tax Foundation said the math simply doesn’t work — nor would Trump’s vision be easy to implement.
“Mathematically impossible, plus any income tax cuts would require Congress,” York wrote on X (3).
“To replace the roughly $2 trillion of revenue raised by the individual income tax with tariffs would require astronomically high tariff rates. And those rates would shrink imports, making it impossible to generate enough revenue to replace the income tax (4).”
It’s also worth noting that even with income tax revenue, the federal government still spent far more than it brought in: $5.235 trillion in total receipts versus $7.010 trillion in outlays, leaving a $1.775 trillion deficit in fiscal 2025.
Still, Trump has doubled down on his assertions in recent months, claiming that the proceeds from tariffs will supplant income tax revenue over time.
“As time goes by, I believe the tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” he said during his 2026 State of the Union address (5).
The impact of the Supreme Court’s ruling that the tariffs are unconstitutional remains to be seen, especially due to Trump’s announcement of across-the-board tariffs shortly after the decision (6).
While the president’s proposal faces serious doubts, policy changes aren’t the only route to lowering tax bills.
Here are two powerful assets that everyday investors can use to their advantage — the same ones the wealthy have leaned on for decades.
Scott Galloway, professor of marketing at New York University’s Stern School of Business, once said that if you’re trying to build wealth, you have “an obligation to pay as little tax as possible (7).”
His advice? Keep it simple: “You buy stocks, you never sell them, you borrow against them.”
Galloway broke it down with an example: “You own $100 in Amazon stock. You need money to buy something. Instead of selling the stock, and let’s say it’s gone up 50% … You would have to realize a capital gain and pay long-term capital gains [tax] on that $50 gain. No, just borrow against it and let the stock continue to grow.”
This strategy allows investors to tap into the value of their portfolios without triggering a taxable event. Because capital gains are only taxed when realized, borrowing against appreciated assets lets investors access cash while deferring taxes.
Meanwhile, the investments themselves can continue to grow. And since the interest on the loan is often smaller than the tax bill from a sale, this approach can be a powerful tool for preserving and compounding wealth over time.
Of course, not all investors have the insight needed to choose stocks successfully.
That’s where Moby comes in. The platform offers expert research and recommendations to help you identify strong, long-term investments backed by advice from former hedge fund analysts.
In four years, and across almost 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.
Moby’s team spends hundreds of hours sifting through financial news and data to provide stock and crypto reports delivered straight to you. Their research keeps you up-to-the-minute on market shifts, and can help you reduce the guesswork behind choosing stocks and ETFs.
Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.
Real estate has long been a go-to asset for building wealth — and one reason is the generous tax treatment it receives.
When you earn rental income from an investment property, you can claim deductions for a wide range of expenses, such as mortgage interest, property taxes, insurance and ongoing maintenance and repairs. A 1031 exchange, for example, is one common tool for keeping your money in real estate without triggering a taxes on any gains.
Real estate investors also get to use depreciation — a tax deduction that recognizes the gradual wear and tear of a property over time.
Today, you don’t need to be a millionaire or buy property outright to benefit from real estate investing. Crowdfunding platforms like mogul, for instance, offer an easier way to get exposure to this income-generating asset class.
This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Beyond single-family assets, multifamily and industrial rentals offer another potentially excellent investment opportunity, with both having a strong outlook for 2026 (8).
Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
At the end of the day, everyone’s situation is unique — from investment goals to financial obligations to risk tolerance.
That’s where a personalized strategy can make a real difference. For example, Ii you’re not sure about real estate, or need help understanding how a 1031 exchange would work, it might be time to talk to an expert.
Advisor.com has made it simple to speak with licensed financial professionals who can provide personalized guidance — including ways to potentially lower your tax burden.
Beyond tax planning, a professional advisor can also help you determine how many years you have left to invest before retirement, and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio. This could include looking at how real estate or shocks could shape your portfolio not just today, but in 30 years as well.
Even better, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan. That way you can make sure that you’re on the same page before looking at what comes next.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Forbes Breaking News (1); U.S. Department of the Treasury (2); Erica York (3), (4); The Associated Press (5); Peterson Institute for International Economics (6); The Diary of a CEO (7); J.P. Morgan (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.