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Promise: Eliminate Federal Income Tax for Individuals Earning Under $150,000

When: January 2024 Campaign Speech & Follow-up Interviews

Category: Individual Income Taxes

Target Group: Middle-Income Earners


📊 Status:

💬 Still a Promise

📜 No formal bill yet introduced in Congress


🧾 Details: Trump proposed eliminating federal income taxes for individuals earning less than $150,000 per year and couples earning under $300,000. Instead, he suggested funding the government through tariffs on foreign imports. This is an extreme shift in tax policy, essentially replacing income tax for most with a form of national consumption tax.


🌴 Impact on Californians (esp. North San Diego):

  • Widespread Tax Relief: A large portion of North San Diego families would see their federal income tax bills drop to $0. This could mean thousands saved annually for middle-income earners.

  • High Cost-of-Living Offset: This relief would be especially felt in areas like Carlsbad, Oceanside, and Vista, where incomes are moderate but living costs are high.

  • Tariff-Funded Tradeoff: Funding the government via import tariffs could raise prices on consumer goods—especially electronics, clothing, and groceries—meaning the savings in taxes might be offset by higher day-to-day costs.

  • No Details Yet: The proposal doesn’t address payroll taxes (Social Security & Medicare) or how it would affect federal programs Californians rely on.


📚 Sources:

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