- Commerce Secretary Howard Lutnick suggested President Donald Trump wants to eliminate income tax for people earning less than $150,000 annually. He said it is part of an overall plan by the Trump administration to drive down taxes for all Americans.
- Lutnick said the federal government would make up the revenue by eliminating overseas tax evasion and implementing tariffs.
- Roughly 93% of American adults earn less than $150,000 annually, according to the U.S. Census Bureau.
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President Donald Trump touted his desire to eliminate taxes on tips and social security. Now, Commerce Secretary Howard Lutnick said one of Trump’s ultimate goals is to eliminate income tax for individuals earning less than $150,000 annually.
Lutnick told CBS News that he knows the president’s goal, saying Trump wants “no tax for anybody who makes less than $150,000.”
He said it’s part of the overall Trump administration plan to drive down taxes for all Americans.
What’s the current tax bracket for people who earn $150,000?
The remarks come as people file their 2024 income tax returns, which are due in April 2025. According to IRS tax tables, the 2024 income tax rate for anybody who currently earns between $100,526 and $191,950 per year is 24%.
The U.S. Census Bureau reported roughly 93% of American adults earn less than $150,000 annually.
In Washington, the Republican-led House approved Trump’s plan for $4.5 trillion in tax cuts as part of a larger bill involving immigration, trade and defense spending. The measure awaits a Friday, March 14, vote from the Senate.
How would the federal government compensate for the lost tax revenue?
Lutnick added that the federal government would compensate for the loss of tax revenue by targeting overseas tax scams and evasions, as well as imposing the widely discussed tariffs on other countries.
