Commerce Secretary Howard Lutnick said this week that President Donald Trump’s goal is to significantly cut taxes across the board, and completely eliminate the federal income tax on Americans making under $150,000 annually — which could impact 93% of Americans.
Lutnick said the administration wants to have other nations chip in through tariffs and closing overseas tax loopholes so Americans can pay less in taxes. “His goal is to have external revenue,” Lutnick said of Trump, on CBS this past Wednesday.
“The rest of the world leans on our economy, breathes off our economy,” he said. “Not only is our economy $29 trillion GDP, but we consume $20 trillion a year — we are the buyers of everybody’s stuff. So, who’s more important, the people who sell stuff, or the people who buy stuff?”
“Let them pay a membership fee — we all understand that model,” Lutnick continued. “How about no tax on tips, how about no tax on overtime, how about no social security [tax]?”
“These are the kinds of things that will change America,” the secretary added. “I know what [Trump’s] goal is: no tax for anybody who makes less than $150,000 a year. That’s his goal.”
According to 2022 data, about 93% of Americans earn less than $150,000 annually, with about 72 million households earning less than $150,000.
Back in January, Trump suggested axing federal income tax for all Americans. “We had no income tax … [until] 1913,” the president said at a conference in Florida. “Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens. Does that make sense? Right?”
“America’s gonna be very rich again and it’s gonna happen very quickly,” Trump continued. “It’s time for the United States to return to the system that made us richer and more powerful than ever before.”
During Trump’s joint address to Congress, he called for the elimination of taxes on tips, overtime pay, and Social Security benefits, which echoed Lutnick’s recent comments to CBS.
“We had tremendous success in our first term,” Trump said. “We’re seeking permanent income tax cuts all across the board. And to get urgently needed relief to Americans hit especially hard by inflation, I’m calling for no tax on tips, no tax on overtime, and no tax on Social Security benefits for our great seniors.”
Trump is currently negotiating tariffs with several nations including Canada, Mexico, China, and European nations.
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