It might sound like a moonshot, but new numbers suggest the U.S. government may be sitting on untapped resources that could help working and middle-class Americans in a big way.
Tariff Revenue: A Surprising Surge
Recent projections show U.S. tariffs could bring in between $80 billion (low estimate) and $300 billion by the end of 2025. Even a middle-of-the-road estimate of $150–200 billion is significant.
DOGE: The Government’s Big Savings Push
The Department of Government Efficiency (DOGE), led by Elon Musk, has identified up to $199 billion in potential savings through contract cancellations, cost reductions, and asset sales. Analysts caution that the real savings could be smaller — possibly just $18–53 billion — but Musk’s revised target of $150 billion for fiscal 2026 shows the potential is large if even partially realized.
Putting It Together
Let’s stay conservative:
- Tariffs: $80 billion
- DOGE realized savings: $20 billion
- Total available: $100 billion
This is enough to eliminate federal income taxes for individual earners earning up to $60,000 — a move that could affect roughly 61–63% of the workforce, or over 100 million Americans.
For context, individual earners under $50,000 paid roughly $70 billion last year. Expanding the threshold to $60,000 would cover an even larger portion of the workforce and still fit within these conservative revenue estimates.
Empowering Work, Opportunity, and Financial Futures
Raising the “no-tax zone” to $60,000 dramatically increases take-home pay for early-career professionals, teachers, nurses, skilled trades workers, service-sector employees, and part-time labor. The ripple effects are significant:
- Debt Reduction: Families can pay down credit cards, student loans, and other debts, lowering stress and improving credit scores.
- Investing & Savings: Even small contributions to platforms like Robinhood, Coinbase, Acorns, Fidelity, Vanguard, and Stash can build long-term wealth.
- Increased Work Incentive: More take-home pay makes working part-time or extra hours more appealing without the fear of hitting a punitive tax threshold.
- Upward Mobility: Early-career workers and parents see the rewards of effort, setting the stage for generational financial independence.
AGI Bands: A New Thought Experiment
If tariff revenue and DOGE savings beat expectations — say closer to $300 billion and $150 billion — the “no-tax zone” could expand even further, with new AGI bands looking like this:
| AGI Band | Percentile | Possible Tax Share | Effect If Tariff + DOGE Savings Used |
| Under $60,000 | ~Bottom 60–63% | 0% | No federal income tax = instant relief |
| $60,000–$110,000 | ~60th–75th | 5–10% | “No-tax zone” could extend upward |
| $110,000–$200,000 | ~75th–90th | ~18% | Lower rates for middle earners |
| $200,000–$1 million | ~90th–99th | ~30% | Progressive structure maintained |
| Above $1 million | Top 1% | ~40% | Major share remains for the highest earners |
Example: How Marginal Tax Brackets Work
Raising the no-tax zone to $60,000 does not punish higher earners. Only the income above the threshold is taxed:
- First $60,000 → tax-free
- Next $15,000 → taxed at the marginal rate
- Total tax owed → just on the portion above $60,000
This makes additional work and higher pay financially rewarding, not penalizing.
Which Regions Would Benefit Most?
Income and workforce patterns vary widely by region. Expanding the no-tax zone to $60,000 would have disproportionate benefits depending on the regional workforce composition:
High-Impact Regions
- South/Southeast: Mississippi, Louisiana, Arkansas, West Virginia, Alabama, Kentucky, South Carolina, Oklahoma — high share of sub-$60k earners.
- Mountain West / Southwest: New Mexico, Arizona, Nevada — rising working-class populations.
- Large states with many low-to-middle earners: Texas, Florida, California, New York — high absolute numbers of beneficiaries.
Moderate Impact
- Midwest: Ohio, Indiana, Missouri, Michigan — moderate relief for working-class earners.
- Northeast: Massachusetts, Maryland, Connecticut — fewer earners under $60k but meaningful impact in cost-of-living pockets.
Bottom line: The policy disproportionately helps regions with the largest working-class populations while still providing meaningful relief nationwide.
Bottom Line: A Transformative Idea
Raising the federal “no-tax zone” to $60,000 using existing tariff and DOGE savings:
- Provides relief to over 100 million Americans
- Boosts consumer spending, debt reduction, and investment
- Encourages work, financial independence, and upward mobility
- Strengthens the workforce in regions that need it most
This isn’t a fantasy. It’s a quantitative framework for reallocating revenue to benefit the majority of Americans — a step toward economic empowerment that could ripple through families, communities, and the broader economy.
Is A Bill Just A Bill? 
Leave a comment