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Heres how much you could saveif Trump eliminates income taxes.
This doesnt include the FICA tax, which funds Social Security and Medicare.
Someone who earns $150,000 per year would pay about $25,500 in federal income taxes.
Thats how much you would save if Trump eliminated income taxes.
Each state has a different tax code.
Some states have progressive tax rates, while others charge a flat income tax across the board.
you might also save money by living in a state that doesnt have any income tax.
Will Tax Savings Boost Inflation?
This scenario could boostinflationand reduce the purchasing power of every dollar.
The elimination of federal income taxes isnt something that can happen overnight.
Then, the administration has to introduce tariffs and sales taxes gradually while limiting the IRS influence.
The government collected about $2.4 trillion in individual income taxes in fiscal year 2024, as reported byTreasury.gov.
The government has to replace that income stream or lower expenses to become financially solvent.
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