President Donald Trump has expressed a desire to eliminate taxes on tips and social security. Now, Commerce Secretary Howard Lutnick has stated that one of Trump’s ultimate goals is to eliminate the income tax for individuals earning less than $150,000 per year.
Lutnick told CBS News that he understands Trump’s goal of “no tax for anybody who makes less than $150,000.”
He said it is part of the Trump administration’s overall plan to reduce taxes for all Americans.
What is the current tax bracket for people making $150,000?
The remarks come as people file their income tax returns for 2024, which are due in April 2025. According to IRS tax tables, the 2024 income tax rate for individuals earning between $100,526 and $191,950 per year is 24%.
According to the US Census Bureau, approximately 93% of American adults make less than $150,000 per year.
In Washington, the Republican-led House passed Trump’s plan for $4.5 trillion in tax cuts as part of a larger package involving immigration, trade, and defense spending. The measure is set for a Senate vote on Friday, March 14.
How would the federal government make up for the lost tax revenue?
Lutnick also stated 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 debated tariffs on other countries.
