The IRS is about to get hit by a Trump freight train known as the “External Revenue Service” — possibly ending decades of dreaded tax filing with foreign tariffs funding the government instead.
At a Glance
- Trump administration plans to launch the “External Revenue Service” to collect tariffs from foreign nations
- Commerce Secretary Howard Lutnick called April 2 “America’s liberation day” when the agency will launch
- The ultimate goal is to eliminate the IRS entirely and lower taxes for American citizens
- Economists argue tariff revenue ($3.1 trillion) cannot replace income tax collection ($20+ trillion)
- The initiative aligns with Trump’s “America First” trade philosophy
Trump’s Bold Vision to Replace the IRS
Just when you thought the federal government couldn’t possibly get any more bloated, President Trump comes along with a plan that might actually shrink it in a meaningful way. The “External Revenue Service” isn’t just a clever play on words — it represents a fundamental shift in how our government funds itself. Instead of digging deeper into Americans’ pockets through income taxation, Trump envisions a system where foreign nations pay their fair share through targeted tariffs. This radical approach flips the script on decades of tax policy that has treated American citizens like an endless ATM machine for government spending.
During his inaugural address, Trump didn’t mince words about the agency’s purpose, making it clear that the External Revenue Service would be responsible for collecting “all tariffs, duties, and revenues.” Commerce Secretary Howard Lutnick has become the administration’s most vocal cheerleader for the initiative, recently describing the April 2 launch date as nothing less than “America’s liberation day.” The enthusiasm isn’t just political theater — it reflects a genuine belief that Americans have been getting a raw deal in global trade for far too long.
America First Trade Policy in Action
What makes this proposal so refreshing is its unapologetic focus on American interests. For decades, our politicians have crafted trade policies that benefit multinational corporations while leaving American workers holding the bag. The External Revenue Service embodies Trump’s trade-centric philosophy by instituting reciprocal tariffs against nations that have exploited our markets. The administration has already drafted a memorandum titled “America First Trade Policy” which outlines how this approach could fundamentally restructure federal revenue collection.
“In a post to Truth Social days earlier in which he announced the plan, Trump said that the U.S. would ‘begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share.'”
You’ve got to appreciate the poetic justice here. For years, countries like China have manipulated their currencies, stolen our intellectual property, and flooded our markets with artificially cheap goods. Now the bill is coming due. The plan calls for the External Revenue Service to not only collect these tariffs but to expedite the process, ensuring that foreign nations can’t drag their feet when it’s time to pay up. It’s the kind of direct, no-nonsense approach that made Trump successful in business before he ever set foot in Washington.
Practical Challenges and Liberal Pushback
Predictably, the economic establishment is clutching its pearls over Trump’s proposal. They insist that tariff revenues could never replace the massive sums collected through income taxation. According to their figures, tariffs generated about $3.1 trillion in 2023, while income taxes brought in over $20 trillion. These numbers, while significant, don’t tell the whole story. The Trump administration isn’t suggesting an overnight replacement but rather a gradual shift toward a more balanced revenue system that doesn’t primarily target Americans’ paychecks.
“Economist and tax policy professor Kimberly Clausing previously told Newsweek that the establishment of an external revenue service was ‘deeply impractical’: ‘First, we already have a Customs and Border Protection office … including officials who collect tariffs. Second, it seems like an odd move for an Administration supposedly focused on efficiency to suggest a redundant government agency as a solution. Even very high tariffs could only replace a minority of the revenue raised by income taxation, and such high tariffs would cripple the economy.'”
This criticism overlooks the multiplier effect of fair trade policies. When American manufacturers aren’t undercut by artificially cheap foreign goods, they hire more workers, who then pay more taxes and need fewer government services. There’s also the small matter of whether we actually need the federal government to be consuming over $20 trillion annually. Perhaps the real solution isn’t finding new revenue sources but cutting unnecessary spending that has ballooned under administrations of both parties. The External Revenue Service represents not just a new agency, but a new mindset about America’s place in the global economy.
Liberation from Tax Tyranny
April 2 is shaping up to be a significant date for Americans tired of being tax cattle for an ever-expanding federal government. Not only will it mark the launch of the External Revenue Service, but it will also kick off Trump’s reciprocal tariff strategy against nations engaged in unfair trade practices. Think about it — for the first time in decades, we have an administration willing to fundamentally rethink the relationship between citizens and their government. Instead of asking how much more can be squeezed from hardworking Americans, they’re asking why Americans should be funding everything in the first place.
The entire concept of the External Revenue Service represents something revolutionary in modern American politics: a solution that doesn’t involve taking more from citizens. Whether it ultimately succeeds in replacing the IRS remains to be seen, but the shift in thinking alone is worth celebrating. In a political landscape where most “solutions” involve higher taxes, more regulations, and bigger government, Trump’s External Revenue Service stands as a testament to what’s possible when you put America first. April 2 can’t come soon enough.
