‘They’ll want Trump for third term’: Trump’s huge tax move could change everything

Donald Trump’s goal to abolish tax for millions of Americans could help him do the unthinkable, a venture capitalist has claimed.

An ambitious Donald Trump proposal to abolish income tax for millions of Americans could see the President secure an unconstitutional third term, a venture capitalist has claimed.

Mr Trump is floating a tax reform proposal which would eliminate income taxes for Americans earning less than $150,000 per year if his administration is able to balance the budget.

“How about every single person we know pays less tax, how about no tax on tips? How about no tax on overtime? … These are the kind of thoughts that will change America,” US Commerce Secretary Howard Lutnick told CBS last month.

“I know what his (Trump’s) goal is … no tax, for anybody who makes less than $150,000 a year. That’s his goal. That’s what I’m working for.”

US President Donald Trump speaks before signing an executive order in the Oval Office of the White House on April 9, 2025 in Washington, DC. (Photo by SAUL LOEB / AFP)

The bold proposal sparked a debate on social media this week after it was discussed by American-Canadian venture capitalist Chamath Palihapitiya, US comedian Andrew Schulz and others on the Andrew Schulz’s Flagrant with Akaash Singh podcast this week.

During the conversation, Mr Palihapitiya said billions raised by Mr Trump’s sweeping tariffs would allow the government to deliver the proposed income tax cuts.

Mr Trump claimed his tariffs – which he announced a 90-day pause on for most countries on Wednesday – has already brought in about $2 billion a day.

“(Tariffs) could raise upwards of $750 billion a year,” said Mr Palihapitiya. “What they said that they would do is they would then turn around and cut the federal income tax for anybody making $150,000 or less to zero.”

Venture capitalist Chamath Palihapitiya said the tariffs could raise upwards of $750 billion a year. Picture: X

Chiming in, Mr Schulz explained: “So what they are doing is using the tariffs to offset the price shock.

“And this is the math, and that hasn’t been 100 per cent established yet, but instead of putting the burden on the American consumer, we put the burden on the foreign country to pay that.”

The pair predicted the proposal, if introduced, would see Republicans secure victory at the midterm election next year and spell further success for Mr Trump’s presidency.

“There’s all these conversations about the midterm right now, ‘Trump tanks the stock market, people get screwed over by … the price shock’. But if you announce at the end of the year, there’s a $750 billion surplus because of taxes and we are eradicating income tax for people making under $150,000, midterms are going red,” said Mr Schulz.

“Forget midterm. They’ll want Trump for the third term,” said Mr Palihapitiya.

Mr Palihapitiya said billions raised by Mr Trump’s sweeping tariffs would allow the government to deliver the proposed income tax cuts. Picture: X

However, the proposal sparked a mixed reaction online, with some suggesting the tax reform “needs to happen” and others remaining highly critical.

“Wow! That would be the most popular policy decision ever. They should do it,” one person wrote.

“Income tax should be abolished! It’s the theft of the American people!” another added.

Others pointed out the flaws with introducing sweeping tax cuts for those earning under $150,000.

“What about someone making 151k? This is so gameable,” one person wrote.

“I never understand this. what if you make $151,000? Do you pay a tax rate on $1k income?” another questioned.

Some also noted that the economic burden of Mr Trump’s tariffs on American consumers.

“The people paying the tariffs would be the end users buying the products in the U.S. AND NO ONE WANTS TRUMP FOR A THIRD TERM BUT BILLIONAIRES. The tariffs are nothing but a tax on American consumers,” one person wrote.

“ALL this does is highlight the severe lack of understanding as to what a tariff even IS. FOREIGN COUNTRIES DOOOO NOTTTT PAY TARRIFS (sic). That’s literally the opposite of how tariffs work,” said another.

Trump’s 90 day pause on tariffs

It comes as Mr Trump on Wednesday announced he was suspending higher tariffs for most countries for 90 days and lowering his reciprocal tariffs to 10 per cent

The President said he came to the decision because 75 countries had asked to negotiate deals.

He also announced he was slapping 125 per cent tariffs on China after it retaliated by matching the US’ tariffs against it.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Mr Trump wrote on social media.

“At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

Mr Trump is suspending higher tariffs for most countries for 90 days. Picture: Saul Loeb/AFP

Speaking at a press conference outside the White House, US Secretary of the Treasury Scott Bessent said the drastic change to the tariff policy was Mr Trump’s “strategy all along”.

“You might even say that he goaded China into a bad position,” he said.

“They responded. They have shown themselves to the world to be the bad actor.”

Mr Bessent said the US is willing to co-operate with trading partners who did not retaliate.

“It wasn’t a hard message: don’t retaliate, things will turn out well.”

‘Methods’ for securing third term

Mr Trump has frequently floated the idea of running for a third term, which is prohibited under the 22nd Amendment in the US Constitution.

“A lot of people want me to do it,” he told NBC News last month.

“But, I mean, I basically tell them we have a long way to go, you know, it’s very early in the administration.”

Mr Trump added he was “not joking” about the possibility of another term.

“There are methods which you could do it,” he said.

However, the US lawyer general said on Sunday it would be “a heavy lift” for the President to find a legal way to run for another term.

US Attorney-General Pam Bondi said it would be “a heavy lift” for the President to find a legal way to run for another term. Picture: Marco Bello/AFP

“I wish we could have him for 20 years as our president,” Pam Bondi told Fox News Sunday.

“But I think he’s going to be finished, probably, after this term”.

The US Constitution was amended in 1947 to set a two-year limit on the presidency, not long after Franklin Roosevelt died near the start of his fourth term in the White House.

But constitutional amendments require approval by two-thirds of both houses of Congress, as well as ratification by three-quarters of the 50 states, which political analysts say is extremely unlikely.

“That’s really the only way to do it,” Ms Bondi said. “It’d be a heavy lift.”

– With AFP

Originally published as ‘They’ll want Trump for third term’: Trump’s huge tax move could change everything