U.S. Commerce Secretary Howard Lutnick: President Trump Wants No Taxes for Americans Earning Under $150,000 Annually
"But on the way, we’re going to cut taxes—no tax on tips, no tax on overtime, and no tax on Social Security.”
By Jim Hᴏft
March 15, 2025
U.S. Commerce Secretary Howard Lutnick revealed that President Donald Trump aims to abolish federal taxes for all Americans earning under $150,000 annually.
Lutnick made the revelation during an interview with CBS News on Tuesday.
“I know what his goal is: No tax for anybody who makes less than $150,000 a year. That’s his goal. That’s what I’m working for,” Lutnick told CBS, underscoring a vision that would put thousands of dollars back into the pockets of American families.
Lutnick elaborated further in a separate interview with Fox News, detailing how President Trump intends to finance this massive tax relief plan while balancing the budget.
According to Lutnick, the Trump administration is focused on driving revenue through tariffs, closing offshore tax scams, and slashing excessive spending, instead of squeezing the middle class for every last penny.
Lutnick:
“When the President balances the budget, his first move is going to be—he has suggested that he would like to waive taxes for people earning under $150,000. That’s aspirational.
When we balance the budget—and let me tell you, he’s got a plan to do it—we are going to take a trillion dollars out of the waste, fraud, and abuse in all of our entitlements, systems, and government waste.
Then we are going to raise a trillion dollars.
That’s the Trump card. The Trump Gold Card is going to be a huge revenue producer.
Tariffs are going to be a huge revenue producer. Then, we will get rid of all the tax scams—like Ireland making a $75 billion budget surplus.
We’ve got all the ships of the world flying the Liberian flag. I mean, imagine—a Liberian flag—just so they can avoid paying U.S. taxes.
You cut all that stuff out, and you’ve got a balanced budget. But on the way, we’re going to cut taxes—no tax on tips, no tax on overtime, and no tax on Social Security.”
Watch: livefreeopinion on X: "JUST IN — Commerce Secretary Howard Lutnick issues further details on President Trump’s goal to waive taxes for Americans making $150,000 or < per year https://t.co/vdYtPi2kP5" / X
No Taxes If You Earn Less Than $150k. President Donald Trump's Plan Explained - Newsweek
Why It Matters
The proposal to remove taxes for people earning less than $150,000 per year would impact the vast majority of Americans.
In 2022, around 93 percent of Americans aged 15 and over earned less than $150,000, according to the U.S. Census Bureau.
The proposal would consequently massively reduce tax revenue generated for the federal government and threaten a huge increase in national debt.
What To Know
Lutnick said on Wednesday that President Trump's aim is to remove taxes for individuals earning less than $150,000 per year.
He also outlined the president's other tax strategies, which include abolishing tax on tips, overtime, and Social Security, and implementing significant reductions to individual and corporate taxes.
Lutnick said that the federal government would counteract massive U.S. tax cuts by implementing tariffs on foreign nations and curbing overseas tax evasion.
He noted that many commercial ships sail under the flags of other nations such as Liberia to avoid U.S. taxation. "All those ships are paying no tax, its a tax scam," he said.
He added that many U.S. companies hold their intellectual property in Ireland because of its favorable tax regime.
"Ireland has a $60 billion surplus... because our companies drop their IP there. They pay Ireland the money — tax scam," he said. "How about we end the tax scams."
Lutnick also touted President Trump's proposal to charge $5 million for "Gold Card" visas as a way of raising trillions of dollars per year.
President Trump said in January that the visas would give Green Card privileges, along with a route to citizenship.
Commenting on President Trump's tax proposals, Lutnick said: "The rest of the world leans on our economy, breathes off our economy - not only is our economy $29 trillion, but we consume $20 trillion a year. We are the buyer of everybody's stuff."
He added: "So, we are the buyer of everybody's commodities, products, goods and services. Everything comes from us. Let them pay a membership fee. We all understand that model - let them pay."
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Where is the Howie Lutnick who on 9/11 cried for his lost coworkers? Who paid the health insurance for those families. Where is the Howie Lutnick who donated millions to his Alma mater Haverford College. He would never pass the Honor Code now.
Democrats will object to this tax decrease because if it goes through they will loose most of their base when the democrats fight against something that their base wants. Win Win for the America First party.