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The Trump administration has proposed a bold and controversial plan to eliminate the Internal Revenue Service (IRS), the agency responsible for collecting federal taxes in the United States.
This idea aligns with President Donald Trump’s “America First” economic agenda, which emphasizes reducing the tax burden on American citizens and shifting it elsewhere. Commerce Secretary Howard Lutnick articulated this vision recently, stating, “Donald Trump announces the External Revenue Service, and his goal is very simple… his goal is to abolish the Internal Revenue Service and let all the outsiders pay.”
The proposal involves replacing the IRS with an External Revenue Service, a new agency that generates revenue through tariffs and duties imposed on foreign trade partners. Trump has suggested that this shift could fund the government without relying on individual or corporate income taxes, which currently account for a significant portion of federal revenue.
In 2024, for instance, the IRS collected $823 billion in individual taxes alone, representing over half of total federal revenue. Critics argue that replacing this with tariff revenue is unrealistic, as the value of imported goods is far lower than the current tax base. Proponents, however, see it as a way to simplify the tax system and protect American industries.
The plan would require congressional approval, where Republicans currently hold majority in both chambers, potentially easing its path forward. If enacted, this radical restructuring could fundamentally alter how the U.S. government operates and how Americans interact with taxation.
We want to ask you, the reader: do you support eliminating the IRS? Answer in our poll below and comment your thoughts on replacing it with an ERS alternative.
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