U.S. President Donald Trump wants no taxes on people making less than $150,000 a year, Commerce Secretary Howard Lutnick told CBS News in an interview earlier this week.
“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 told CBS.
“How about no tax on tips? How about no tax on overtime? How about no social security? How about all those things.”
Lutnick’s comments on tip taxes and social security echo promises from Trump that he will eliminate taxes on tips, while also pushing for sweeping tax cuts for individuals and corporations.
When questioned about the increased deficit and debt due to tax cuts, Lutnick claimed that “other people” would pay for the government instead of Americans. Lutnick claimed that overseas tax scams were denying the U.S. of revenue, and an end to such practices could increase the country’s fiscal income while allowing for tax cuts for Americans.
Lutnick also argued that Trump’s plan for a $5 million U.S. visa will bring in more fiscal revenue.
Trump’s plan for $4.5 trillion in tax cuts was approved by a Republican-led House of Representatives in February, as part of a bill outlining his broader agenda for immigration, trade, and defense spending. The bill will now face a vote in the Senate.
While Trump is pushing for tax cuts, he is also attempting to slash government spending and reduce the country’s fiscal deficit, although his measures- especially those carried out by the Department of Government Efficiency- have elicited mixed reactions.
A major point of contention has been the mass firing of federal workers across several agencies.
Concerns over economic disruption under Trump, especially from his tariff agenda, drove up fears of a U.S. recession in recent weeks. When questioned on the matter, Lutnick told CBS that it would be “worth it” in risking a recession to push Trump’s policies.
Source: Investing