President Donald Trump is reportedly on board with a plan to eliminate taxes for individuals earning less than $150,000 per year, according to Commerce Secretary Howard Lutnick. This proposal comes with a condition: balancing the national budget. Lutnick explained that he discussed this idea with Trump, who agreed to it, saying “If you balance the budget, sure”.
This plan would reportedly cover around 85% of Americans, with Lutnick noting that tariffs would be used to offset the loss of tax revenue. Trump’s goal, according to Lutnick, is to have “external revenue” by placing duties on imported goods.
Additionally, Lutnick mentioned that Trump could bring a tax revolution to America, suggesting the elimination of taxes on tips, overtime pay, and Social Security deductions. Lutnick believes that these policies are crucial for America’s growth and development.
It’s worth noting that experts have raised concerns about the practicality and fairness of this proposal, including its potential impact on work incentives, tax fairness, and revenue generation.