US Commerce Secretary Howard Lutnick unveiled a transformative tax strategy proposed by President Donald Trump, aimed at profoundly reshaping financial obligations for American taxpayers.
Speaking candidly in a CBS interview, Lutnick emphasized Trump’s ambition to abolish federal income taxes for individuals earning less than $150,000 annually — a goal that could redefine economic perceptions for millions. Lutnik stated that Trump’s vision is tax-free status for those earning below this threshold and he is working toward that goal.
The proposed plan also includes eliminating levies on tips, overtime, and social security. Aiming to further ease financial burdens, Trump has also suggested introducing a tax deduction for car loan interest and modifying income tax codes affecting expatriates. Currently, single earners at this income level face substantial deductions falling within the 22% federal tax band, approximately draining $24,000 in taxes.
Lutnick defended these sweeping reforms, aligning them with Trump’s broader economic policies, including the contentious trade negotiations and tariffs targeting Canada and Mexico. Despite criticisms and fears of potential recessionary risks, Lutnick remained firm on the necessity of these measures, portraying them as pivotal to strengthening the domestic economy.
On the topic of fiscal deficits exacerbated by tax cuts, Lutnick asserted that U.S. taxpayers shouldn’t shoulder government overspending burdens. Instead, he pointed fingers at foreign entities and tax dodgers abroad, advocating for closing offshore loopholes as a strategy to fund domestic tax relief. With Trump’s approach, tackling international tax gaps might pave the way for a more equitable distribution of financial responsibilities.
