President Trump proposed eliminating federal income tax in favor of tariffs, impacting bi-weekly checks positively.

From Yahoo Finance: 2025-06-01 12:01:00

President Trump suggested abolishing the U.S. income tax in favor of an “all tariff policy,” sparking debate among economists and policy experts. Current data shows the impact of eliminating federal income tax on bi-weekly checks for various income brackets and states. The proposal continues to generate discussion and analysis.

Median household incomes range from $47,597 to $84,805, with corresponding total income taxes for single filers between $11,070 to $26,872. State income tax varies, affecting bi-weekly checks that could see increases from $1,405 to $3,083 if federal income tax is eliminated. The proposal has implications for individual states and taxpayers nationwide.

The income tax analysis was conducted using 2023 American Community Survey median household figures and in-house calculations. Based on 2024 tax brackets, the study estimated total income taxes paid, the tax burden, and bi-weekly paycheck amounts for single filers. By removing federal income taxes (including FICA), the study projected the potential impact of Trump’s proposal on bi-weekly checks by state.

Read more: How Paychecks Would Look in Each State If Trump Dropped Federal Income Tax