President Donald Trump is working to eliminate federal income taxes for individuals earning less than $150,000 per year, Commerce Secretary Howard Lutnick said Wednesday. Trump’s tax strategy also includes abolishing taxes on tips, overtime, and Social Security while implementing significant reductions in both individual and corporate tax rates.
Lutnick stated that the administration plans to offset the revenue loss by cracking down on overseas tax fraud and imposing tariffs on foreign nations. He highlighted tax avoidance strategies used by multinational corporations, such as registering intellectual property in Ireland or operating commercial ships under foreign flags to evade U.S. taxes. Ending these loopholes, he argued, could recover billions in lost tax revenue.
Another proposal involves charging $5 million for “Gold Card” visas, which would offer Green Card privileges and a pathway to citizenship. Trump has suggested this could generate trillions of dollars while reducing reliance on income taxes.
Trump has framed his tax plan as a way to strengthen the U.S. economy by shifting the tax burden away from American workers and onto foreign businesses that benefit from U.S. consumers. He reiterated in January that “instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens.”
Meanwhile, the Republican-led House has passed a budget resolution including $4.5 trillion in tax cuts over the next decade. The package, which extends provisions from Trump’s 2017 Tax Cuts and Jobs Act, now faces a Senate vote.
