US Commerce Secretary Howard Lutnick has revealed a sweeping tax plan that could leave millions of Americans tax-free. In a CBS interview, Lutnick said that former President Donald Trump is pushing to eliminate federal taxes for individuals earning under $150,000 a year — a move that could reshape the country's fiscal landscape. "I know what his (Trump's) 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 stated.
Lutnick didn't stop there. He floated broader ideas aimed at cutting Americans' tax burdens even further. “How about no tax on tips? How about no tax on overtime? How about no social security? How about all those things,” he added, signaling an aggressive approach to tax reform.
Trump’s proposal, if implemented, would exempt anyone earning below $150,000 — about ₹1.3 crore a year — from paying taxes. Lutnick emphasized that making this goal a reality is his current mission.
While defending Trump’s larger economic strategy, including his ongoing tariff battles with Canada and Mexico, Lutnick maintained that the policies are necessary, even if they risk triggering a recession. “These policies are the most important thing America has ever had... The only reason there could possibly be a recession is because of the Biden nonsense we had to live with. These policies generate revenue. They drive growth. They lead to factories being built here," he argued.
On concerns about growing deficits tied to tax cuts, Lutnick asserted that Americans shouldn’t be on the hook for government spending. “Other people” — referring to foreign entities and overseas tax evaders — should bear the cost. He argued that plugging international tax loopholes would help fund domestic tax relief.
Lutnick also backed Trump’s controversial $5 million US visa proposal, claiming it would generate additional revenue.
In February, Trump’s $4.5 trillion tax cut package, part of a broader bill covering immigration, trade, and defense, cleared the House of Representatives and now awaits a Senate vote. Parallel to this push for tax cuts, Trump is advocating for deep spending cuts and fiscal reforms, including downsizing federal agencies — a move that has sparked sharp debate.
Reactions online have been divided. One user on X wrote, “All Americans should be required to fund the government. It can't just fall on the minority of Americans who make over $150,000.” Another added, “$150,000 is not rich for a family.”
Others argued for the tax cuts, with one bot account focused on government efficiency stating, “Tax reform is not just paperwork — It is $2 trillion in waste getting drained from the swamp… Secretary Lutnick's plan shifts the burden where it belongs — Onto foreign imports through targeted tariffs.”
Yet some warned of unintended consequences. “The issue is people making over $150,000 would be incentivized to drop below the threshold based on today's tax rates. Incentivizes mediocrity,” a fourth user commented.