Grant Cardone Says Ending Income Taxes Would Boost the Middle Class — Is He Right?
Written by
Gabrielle Olya
Edited by
Rebekah Evans
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President Donald Trump has floated the idea of replacing federal income taxes with tariffs — a proposal that would dramatically reshape how Americans contribute financially to the government.
Real estate investor and private equity fund manager Grant Cardone believes such a move would be a major win for middle-class households, putting more cash in workers’ pockets immediately.
Here’s why Cardone said eliminating federal income taxes could financially benefit the average American — and what to consider alongside the claim.
Ending Income Taxes Could Increase Take-Home Pay
Eliminating federal income taxes would allow workers to keep 100% of their earnings, immediately increasing take-home pay without requiring a raise or job change. For middle-class employees paid biweekly, Cardone said that this shift alone would meaningfully improve cash flow.
“Imagine 100% of your paycheck every two weeks,” Cardone, who will be hosting the 10X Wealth Conference in Miami on May 16 and 17, told GOBankingrates.
This change could be especially significant for households on a tight budget.
Paycheck-to-Paycheck Workers Could Benefit Most
A large share of middle-class Americans live paycheck to paycheck, often struggling to cover unexpected expenses or rising everyday costs.
“So many people right now live paycheck to paycheck,” Cardone said.
From Cardone’s perspective, eliminating income taxes could provide financial relief without requiring people to work more hours or earn more money. Instead, higher net pay could ease short-term financial pressure simply by increasing what workers take home.
Cardone: Quality of Life Would Rise Quickly
Cardone argued that removing income taxes would immediately improve the quality of life by at least the percentage people currently pay in taxes.
“No taxes would immediately improve the quality of living for all [income-tax-paying] people by at least 15%,” he said. “So wherever you’re renting, it will get 15% better. Whatever your food is like now, it will get 15% better.
“If you’re paying 28% in taxes, your life will get 28% better,” Cardone added. “You’re going to get 28% better cars, housing, rent, food.”
Higher Disposable Income Could Fuel US Economic Growth
Cardone believes that most middle-class Americans would spend their extra income, which could fuel the economy as a whole.
“You’re not going to save the money; you’re going to spend it because it’s like free money,” Cardone said. “So what would happen is the GDP of this country would explode.”
That said, some economists question whether tariff revenue could fully replace the federal income tax or how higher import costs might affect consumer prices. Any overhaul of the U.S. tax system would also require congressional approval and could take years to implement.
Ending Income Taxes Wouldn’t Fix Poor Money Habits
While eliminating income taxes could potentially benefit middle-class Americans, Cardone also emphasized that personal financial responsibility would still matter.
“What you spend your money on, you still could be living paycheck to paycheck,” Cardone said. “That’s not up to the government — that’s up to the individual. But if you give people more money, they’re going to improve the quality of their lives.”
Even with higher take-home pay, Cardone argued that long-term financial stability would still depend on how individuals manage their spending and savings decisions.
Pros and Cons of Eliminating Federal Income Taxes
Cardone believes replacing income taxes with tariffs would immediately raise household take-home pay, boost consumer spending and improve the quality of life for middle-class Americans. Other experts, however, question whether tariff revenue could realistically replace income taxes without unintended economic side effects.
While fundamental changes to the tax system could meaningfully improve everyday financial life, they could also create new challenges along the way.
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