The Blubber

Trump’s Goal: No Taxes for Earners Under $150K, Says Commerce Secretary

President Donald Trump aims to eliminate income taxes for individuals making less than $150,000 per year, Commerce Secretary Howard Lutnick said Wednesday.

“I know what his goal is—no tax for anybody making under $150,000 a year. That’s what I’m working for,” Lutnick told CBS News.

Lutnick argued that massive tax cuts could be achieved without ballooning the national debt by cracking down on overseas tax fraud and increasing revenue through tariffs.

Why It Matters

If implemented, this proposal would eliminate federal income taxes for 93% of Americans—those earning below $150,000, according to U.S. Census Bureau data from 2022.

However, such a move would drastically reduce federal tax revenue, raising concerns about how the government would fund its operations without a surge in national debt.

Key Details of Trump’s Tax Plan

Lutnick outlined several components of Trump's broader tax strategy, including:

• Abolishing taxes on tips, overtime, and Social Security income
• Cutting both individual and corporate tax rates
• Countering lost revenue by raising tariffs on foreign nations and cracking down on offshore tax evasion

“All those ships sailing under foreign flags—Liberia, etc.—pay no tax. It’s a tax scam,” Lutnick said, referencing how commercial vessels avoid U.S. taxation.

Similarly, he noted that many U.S. corporations shift their intellectual property (IP) to Ireland to benefit from low tax rates, contributing to Ireland’s $60 billion budget surplus.

“They drop their IP there, pay Ireland the money—it’s a tax scam. How about we end the tax scams?” he said.

The “Gold Card” Visa Proposal

Lutnick also promoted Trump’s plan to sell “Gold Card” visas for $5 million each, granting buyers a Green Card and a path to citizenship. Trump has claimed this could generate trillions of dollars annually.

“The U.S. as the World’s Economic Engine”

Lutnick emphasized America’s economic dominance, arguing that other countries should contribute more since they depend on U.S. consumers.

“The rest of the world leans on our economy, breathes off our economy. Our economy is $29 trillion, and we consume $20 trillion a year. We buy everyone’s stuff,” Lutnick said.

“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.”