Exploring Trump's Push to Abolish the IRS by 2025

While Trump hasn’t directly proposed abolishing the IRS, he’s supported major tax reforms and issued executive orders impacting IRS operations, including freezing new hires. The Fair Tax Act of 2025, backed by some Republicans, would eliminate the IRS and replace income taxes with a 23% national sales tax. However, this proposal faces significant opposition and hasn’t gained widespread support in Congress. Understanding the full scope of potential tax system changes requires exploring the complex political landscape.

In a bold move that’s sending shockwaves through Washington, former President Donald Trump is pushing to abolish the Internal Revenue Service through the Fair Tax Act of 2025. This ambitious tax policy overhaul aims to replace the current income tax system with a national sales tax, fundamentally transforming how the government collects revenue.

The proposed legislation, which has been introduced multiple times in Congress but never enacted, would eliminate personal and corporate income taxes, death tax, gift tax, and payroll tax. The current audit rate of Americans remains at a mere 0.44%. The national sales tax rate would be set at 23 percent for the 2027 tax year.

You’ll see significant changes if this Republican-backed initiative succeeds. The plan would dismantle the current tax system and implement a consumption-based tax structure that affects all purchases made within the United States. Trump’s executive order has already begun impacting IRS operations by freezing new hires and potentially reshaping the agency’s leadership, including plans to nominate former Rep. Billy Long as IRS Commissioner. House Republicans, led by Representatives Smith and Edwards, have taken decisive action by introducing legislation to terminate the Direct File program.

The revenue implications of abolishing the IRS raise serious concerns about tax compliance and enforcement. Without the IRS’s oversight, there’s a risk that voluntary tax compliance could decrease, potentially leading to higher rates of tax evasion. Before 1913, tariffs were primary for generating government revenue.

You might wonder how the government would guarantee proper revenue collection under a national sales tax system, especially given Trump’s previous statements suggesting that avoiding income tax demonstrates business acumen.

You’ll likely feel the effects of this proposed change differently depending on your income level. Critics argue that a consumption-based tax system could disproportionately impact lower-income households, as they typically spend a larger portion of their income on goods and services.

Trump’s suggestion to use tariffs as an alternative revenue source could also affect international trade relationships and potentially increase consumer prices.

The political landscape surrounding this proposal reflects deep divisions between parties. You’re witnessing a heated debate as Republicans push to end programs like the IRS Direct File system while facing opposition from those who believe dismantling the IRS could destabilize government funding.

The shift would require extensive regulatory adjustments to maintain tax system stability and guarantee proper revenue collection.

When you compare this approach to global tax systems, you’ll notice that while many countries utilize consumption taxes, they typically maintain them alongside income taxes rather than as a complete replacement.

The proposed overhaul would align the U.S. more closely with nations that heavily rely on consumption taxes, though few developed countries operate without some form of income tax.

The success of this initiative remains uncertain, but you should prepare for potential changes to the tax system. Whether through the Fair Tax Act or other reforms, Trump’s push to abolish the IRS represents a significant shift in American tax policy that could reshape how you and every other American citizen interact with the federal tax system.