No Taxes Under $150,000: U.S. Secretary of Commerce Howard Lutnick has revealed President Donald Trump’s new plan to remove taxes for people earning less than $150,000 a year. In an interview with CBS News, Lutnick explained Trump’s goal to help middle- and lower-income Americans by cutting their taxes to zero.
“I know what Trump’s goal is, which is zero taxes for those who earn less than $150,000 a year. That’s his goal, and that’s what I’m working for,” Lutnick said.
What’s in Trump’s Tax Plan?
Trump’s tax strategy also includes ending taxes on tips and overtime pay. It aims to reduce personal and corporate taxes significantly. Lutnick suggested that the government could make up for the lost revenue by cracking down on international tax fraud, which he said costs the U.S. billions of dollars.
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Another idea to boost revenue is a $5 million U.S. visa proposal. Trump’s broader tax plan, which includes $4.5 trillion in tax cuts, passed the Republican-controlled House of Representatives in February and is now waiting for a Senate vote.
Cutting Spending and Reducing the Deficit
While pushing for tax cuts, Trump is also working to reduce government spending and lower the country’s budget deficit. However, these efforts have caused controversy, especially because of large layoffs in federal agencies.
Lutnick also supported Trump’s stance on tariffs, saying the president believes industries like steel, aluminum, pharmaceuticals, semiconductors, and automotive are crucial for the U.S. economy. Trump wants to boost these industries at home instead of relying on other countries.
“We need a steel and aluminum industry here in the United States to protect us for national security purposes. You can’t be at war without producing steel; you can’t allow another country to supply steel if you need it for a war,” Lutnick said. He also claimed that tariffs won’t lead to inflation.
Trump’s tax plan aligns with his goal of shutting down the Internal Revenue Service (IRS) and shifting the tax burden to “outsiders,” as Lutnick explained in February.
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Criticism and Doubts About the Plan
Not everyone agrees with Trump’s strategy. Billionaire investor Mark Cuban criticized Lutnick’s optimism about tariffs and their impact on U.S. manufacturing. Cuban emphasized the importance of a service-based economy and maintaining the U.S.’s global lead in technology.
Additionally, JPMorgan’s chief economist, Bruce Kasman, warned there’s a 40% chance the U.S. could face a recession due to stock market declines and concerns over tariffs.
Trump’s plan aims to help working Americans by cutting taxes, but it faces challenges and criticism. As the debate continues, the Senate will decide whether to approve the $4.5 trillion tax cut plan.
