How Trump Can End the IRS (My Cheat Sheet)

What if I told you the IRS could disappear tomorrow?

Not neutered. Not “reformed.” Not downsized.

Poof. Just like that.

Gone.

No more personal income taxes. No more April 15th panic. No more 87,000 new agents hired to hunt you down over a math error.

People will say this is crazy, but that’s recency bias. America ran just fine without an income tax for most of its history. Actually, not just fine—the economy BOOMED.

The country grew from a scrappy collection of states to a global powerhouse, all without taking a cut of your paycheck.

So why do we have the IRS now? And more importantly—how do we get rid of it?

That’s what I talked about this week in The James Altucher Show. (Special link below.)

This isn’t just a thought experiment. I have a plan to make this happen.

A way to eliminate income taxes, replace them with something better, and still fund the government without sinking the economy.

The key benefits of this plan:

✅ No more IRS audits, tax filings, or loopholes.

✅ The economy grows by $3.75 trillion per year.

✅ People keep 100% of their paychecks and choose how they are taxed (by spending).

✅ The government still raises the same $2.5 trillion.

✅ Wealthier individuals contribute more.

✅ Corporate taxes increase as businesses thrive in a larger economy.

And because I know this is a lot to take in, I promised on the podcast I would give all listeners a cheat sheet.

So check out the cheat sheet and then listen in for all the context.

The Cheat Sheet

Let’s start with the key problems.

The US government collects $2.5 trillion a year from personal income taxes, but still burns through $6.7 trillion in spending. That leaves a $1.8 trillion budget hole—every single year.

We won’t solve the problems that come from the deficit overnight.

But a booming economy and better tax structure will pull in that $2.5 trillion and naturally reduce the shortfall over time.

Step one: Ditch personal income taxes completely. Gone. You keep 100% of what you earn. No payroll deductions. No filing in April. No audits. Nothing.

Step two: Replace it with a progressive national sales tax. The tax burden shifts to spending, not earning. The more you spend, the more you contribute. The less you spend, the more you keep. Easy.

Step three: Businesses collect the tax at the cash register. No loopholes, no voluntary compliance nonsense. It's all automatic. Much simpler.

(Step 3.5: Seniors and Social Security recipients pay nothing. Show your card, and you’re exempt.)

Here’s the three-tier tax structure:

• Necessities (food, rent, utilities): 5% tax
• Standard goods (clothes, furniture, tech): 15% tax
• Luxury goods (yachts, private jets, Rolls Royces): 50% tax

Think about it.

You keep 100% of what you make. You decide when and how you’re taxed—only when you spend.

No more audits. No more accountants. No more filing paperwork at the end of the year. Just taxes at the cash register.

And here’s the thing about luxury goods…

They operate in a different economic universe than standard consumer products.

A 50% tax on a Rolls-Royce or a private jet doesn’t necessarily kill demand; in fact, it could enhance it in many cases. Luxury consumers rationalize high costs as part of the experience.

“I paid $1.5 million for this Rolls? Damn right I did.” It’s not about affordability—it’s about proving you can.

So here’s the cheat sheet.