U.S. Commerce Secretary Howard Lutnick says Trump aims to abolish taxes for earners under $150K

U.S. President Donald Trump does not want taxes on people making less than $150,000 a year. Commerce Secretary Howard Lutnick told CBS News in an interview emphasizing proposals such as removing taxes on tips, overtime, and Social Security contributions, describing them as transformative ideas for America.

Lutnick’s comments on tip taxes and social security echo Trump’s promises to eliminate tip taxes while also pushing for sweeping tax cuts for individuals and corporations.

Lutnick reaffirmed his commitment to working toward Trump’s vision of a tax-free system for those below the income threshold.

Lutnick’s remarks spark social media debate on Trump’s tax plan

Lutnick’s comments are being celebrated on social media by prominent Republican supporters like Benny Johnson, who posted the clip on X (formerly known as Twitter) to responses that praised Donald Trump and called it a “great move” and “amazing”.

One user said this will likely be one of the most popular pieces of legislation ever passed in American history. Another called it “the largest tax cuts for the middle class in U.S. history. Letting Americans keep what they have earned is a great start to making America prosperous.”

Another user noted that no income taxes for those making under $150k would be a great move as it will help so many people, and that policy could also stimulate the economy.

Still, not everyone welcomed the news with open arms. There were questions about the legality and constitutionality of a move like that. Critics asked whether exempting certain income groups from federal tax would violate the Equal Protection Clause, which requires that laws enacted at the federal level be fair.

Others gawked at the income threshold, asking why the bottom for the “very rich” was set at $150,000 instead of $250,000.

Trump pushes for tariffs over taxes to boost U.S. wealth

Donald Trump has previously said he would like to remove taxes on citizens and replace them with tariffs on other countries. He has repeatedly voiced support for the move—even during his campaign to become President last year.

Speaking at the 2025 Republican Issues Conference at the Trump National Doral, Miami, on January 27, he advocated doing away with income tax for Americans, saying that it is “time for the US to return to a system that made us richer and powerful”. He added that the US should be enriching itself by “tariffing and taxing foreign nationals”.

“America’s gonna be very rich again, and it’s gonna happen very quickly. It’s time for the United States to return to the system that made us richer and more powerful than ever before,” Trump said.

Trump recalled his speech from last week, in which he said that instead of taxing American citizens to enrich foreign nations, they should tariff and tax foreign nations to enrich U.S. citizens. After Donald Trump took over in January, America slapped tariffs on trading partners and allies, including Canada. The EU, Canada, and China have vowed or enforced retaliatory measures.

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