Howard Lutnick, the US Secretary of Commerce, unveiled President Donald Trump’s new plan to remove taxes for individuals making less than $150,000 annually.
During an interview, Lutnick revealed Trump’s budgetary objective.
“I know what Trump’s goal is, which is zero taxes for those who earn less than $150,000 a year. That’s his goal and that’s what I’m working for,” Lutnick stated.
The new budgetary strategy of Donald Trump
Trump’s tax plan also aims to significantly lower household and corporate taxes while eliminating overtime and tip taxes.
According to Yahoo!, Lutnick proposed that reducing foreign tax fraud, which he claimed is costing the US money, may make up the difference between the deficit from these tax cuts.
Lutnick also mentioned a $5 million US visa proposal as a potential source of extra tax income.
The Senate has yet to vote on Trump’s complete tax proposal, which was approved by the Republican-controlled House of Representatives in February and includes $4.5 trillion in tax cuts.
According to Lutnick, Trump is trying to lower the nation’s fiscal deficit and public spending in addition to supporting tax cuts. However, there has been controversy around these acts, particularly the widespread layoffs of federal personnel across multiple agencies.
“The president believes that industries like steel and aluminum, pharmaceuticals, semiconductors, and the automotive industry are vital to the U.S. economy and seeks to promote their domestic development rather than relying on other countries,” Lutnick said, backing Trump’s tariff stance.
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“For national security reasons, the United States needs a steel and aluminum sector to keep us safe. Lutnick asserted that tariffs won’t lead to inflation, saying, “You can’t be at war without producing steel; you can’t allow another country to supply steel if you need it for a war.”
Trump’s plan to eliminate the Internal Revenue Service (IRS) and transfer the tax burden to “outsiders,” as the commerce secretary put it in February, is consistent with his tax plan.
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Lutnick’s defense of Trump’s tariff policy, however, has drawn criticism.
Mark Cuban, a billionaire investor, chastised Lutnick this week for his optimism over the positive effects of Trump’s trade war and tariffs on the US manufacturing sector.
Conversely, Cuban highlighted the significance of a service-oriented economy and US technological leadership in the world.
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Amid a sell-off in stocks and worries over tariffs, Bruce Kasman, chief economist at JPMorgan, warned Wednesday that there is a 40% possibility the US will go into recession.
