Trump Plans to End Income Taxes for Most if This Happens [WATCH]

U.S. Commerce Secretary Howard Lutnick confirmed on Friday that President Donald Trump has agreed to eliminate income taxes for households making less than $150,000 a year, provided that the budget is successfully balanced.

This promise aligns with Trump’s broader economic strategy, which includes utilizing tariffs to achieve financial goals.

Lutnick revealed the development during an appearance on the “All In” podcast, explaining that the conversation about eliminating income taxes resurfaced while he was in the car with the president.

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“I’m in the car with him and I said we’re going to balance the budget,” Lutnick recounted.

He continued, “And I said, ‘But I have one favor to ask you: If we can balance the budget for you, will you agree to waive all income tax for every person who makes less than $150k a year in the United States of America?’ Which, by the way, is about 85% of Americans.”

Lutnick shared the president’s response, noting Trump’s commitment to the proposal.

“And the reason you want to work for Donald Trump is he looks at me, he goes, ‘Sure,’” Lutnick said.

“You realize, the President of the United States said, ‘If you balance the budget, sure.’ And he’s not lying; he’s not kidding. He’s like, ‘Yeah.’”

Commerce Secretary Howard Lutnick says scrapping income taxes could soon become reality.

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This promise of income tax elimination is significant, as it would directly benefit a large portion of American households.

If implemented, it would provide tax relief to about 85% of the nation’s population—those earning less than $150,000 annually.

Lutnick also drew attention to the historical context of the U.S. tax system, pointing out that the country did not have a federal income tax until 1913.

Instead, the government primarily relied on tariffs as a major source of revenue. Trump has already pursued this model, implementing tariffs on China and indicating plans to do the same with Mexico and Canada, two nations with which the U.S. shares a land border.

These tariffs are part of Trump’s broader economic strategy to balance the budget while reducing reliance on income taxes.

The proposal, which Trump teased earlier in January, continues to shape the debate over tax reform and fiscal policy in the U.S. President Trump’s suggestion of eliminating federal income taxes for lower- and middle-income households is seen by some as a way to empower working Americans while reducing the overall tax burden.

It also reflects his commitment to reshaping the federal tax structure, with a focus on reducing government spending and balancing the national budget.

The announcement comes amid ongoing discussions about the future of American fiscal policy, with many conservative advocates supporting such tax cuts as a way to stimulate economic growth and reduce the financial strain on families.

However, balancing the budget while eliminating income taxes for the majority of Americans remains a significant challenge, requiring careful policy adjustments and sustained economic growth.

President Trump’s tax policy proposals are likely to remain a key talking point, especially in the context of ongoing tariff negotiations with international trade partners.

With this latest commitment to eliminating income taxes for households earning under $150,000, Trump’s administration seeks to address economic disparities and strengthen his appeal among middle-class voters.

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