Notes from James:
What if I told you that we could eliminate the IRS, get rid of personal income taxes completely, and still keep the government funded? Sounds impossible, right? Well, not only is it possible, but historical precedent shows it has been done before.
I know what you’re thinking—this sounds insane. But bear with me. The IRS collects $2.5 trillion in personal income taxes each year. But what if we could replace that with a national sales tax that adjusts based on what you buy?
Under my plan:
- Necessities (food, rent, utilities) 5% tax
- Standard goods (clothes, furniture, tech) 15% tax
- Luxury goods (yachts, private jets, Rolls Royces) 50% tax
And boom—we don’t need personal income taxes anymore! You keep 100% of what you make, the economy booms, and the government still gets funded.
This episode is a deep dive into how this could work, why it’s better than a flat tax, and why no one in government will actually do this (but should). Let me know what you think—and if you agree, share this with a friend (or send it to Trump).
Episode Description:
What if you never had to pay personal income taxes again? In this mind-bending episode of The James Altucher Show, James tackles a radical idea buzzing from Trump, Elon Musk, and Howard Lutnick: eliminating the IRS. With $2.5 trillion in personal income taxes on the line, is it even possible? James says yes—and he’s got a plan.
Digging into history, economics, and a little-known concept called “money velocity,” James breaks down how the U.S. thrived in the 1800s without income taxes, relying on tariffs and “vice taxes” on liquor and tobacco. Fast forward to today: the government rakes in $4.9 trillion annually, but spends $6.7 trillion, leaving a gaping deficit. So how do you ditch the IRS without sinking the ship?
James unveils his bold solution: a progressive national sales tax—5% on necessities like food, 15% on everyday goods like clothes, and a hefty 50% on luxury items like yachts and Rolls Royces. Seniors and those on Social Security? They’d pay nothing. The result? The government still nets $2.5 trillion, the economy grows by $3.7 trillion thanks to unleashed consumer spending, and you keep more of your hard-earned cash. No audits, no accountants, just taxes at the cash register.
From debunking inflation fears to explaining why this could shrink the $36 trillion national debt, James makes a compelling case for a tax revolution. He even teases future episodes on tariffs and why a little debt might not be the enemy. Whether you’re a skeptic or ready to tweet this to Trump, this episode will change how you see taxes—and the economy—forever.
What You’ll Learn:
- The history of taxes in America—and how the country thrived without an income tax in the 1800s
- Why the IRS exists and how it raises $2.5 trillion in personal income taxes every year
- How eliminating income taxes would boost the economy by $3.75 trillion annually
- My radical solution: a progressive national sales tax—and how it works
- Why this plan would actually put more money in your pocket
- Would prices skyrocket? No. Here’s why.
Timestamps:
00:00 Introduction: Trump's Plan to Eliminate the IRS
00:22 Podcast Introduction: The James Altucher Show
00:47 The Feasibility of Eliminating the IRS
01:27 Historical Context: How the US Raised Money in the 1800s
03:41 The Birth of Federal Income Tax
07:39 The Concept of Money Velocity
15:44 Proposing a Progressive Sales Tax
22:16 Conclusion: Benefits of...
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