US President Donald Trump announced that federal income taxes could be significantly reduced or eliminated upon the implementation of a new tariff regime. In a recent statement, Trump emphasized that these tax cuts would focus on individuals earning less than $200,000 annually. He referenced the concept of an 'External Revenue Service,' suggesting funding for the federal government would come solely from import tariffs, replacing the Internal Revenue Service (IRS) model. The proposed elimination of federal income tax is anticipated to positively impact asset prices, including cryptocurrencies, due to increased disposable income, although this outcome isn't guaranteed. Trump's proposal echoes sentiments expressed in previous discussions about returning to a tax regime reminiscent of the Gilded Age without a permanent income tax. Studies indicate that the potential savings from this shift could amount to significant cuts in lifetime tax payments for Americans. However, there has been inconsistency in the Trump administration's approach to tariffs, contributing to market volatility and criticism from financial analysts.

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