Lutnick Explains Trump Plan To Eliminate Taxes For Those Earning Under $150,000

US Commerce Secretary Howard Lutnick says President Donald Trump wants to eliminate taxes on those earning under $150,000 per year once the budget is balanced.

“I know what [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 News in a Wednesday interview.

The on Thursday, Lutnick told Fox News: “What we discussed was when the president balances the budget, his first move is going to be—he has suggested that he would like to waive taxes for people under $150,000. That’s aspirational.”

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LUTNICK: “What we discussed was when the president balances the budget, his first move is going to be—he has suggested that he would like to waive taxes for people under $150,000. That’s aspirational.”pic.twitter.com/7V8sEmugWQ

— Josh Caplan (@joshdcaplan) March 13, 2025

Lutnick also mentioned Trump’s 2024 proposals to end taxes on overtime pay, tips, and Social Security payments – while the president has also touted the creation of an “External Revenue Service” to collect duties, and even floated ending all federal income tax if the tariff revenues are sufficient.

“How about no tax on tips? How about no tax on overtime? How about no social security? How about all those things?” Lutnick said on Wednesday.

As the Epoch Times notes further, Since taking office in January, Trump has issued tariffs targeting Canada, Mexico, the European Union, and China, as well as broader duties on aluminum, steel, and other products.

When asked about tariffs in the CBS interview, Lutnick described them as “the most important thing America has ever had” and suggested that they’re “worth it” despite possible economic pain such as a recession.

“The only reason there could possibly be a recession is because the Biden nonsense that we had to live with. These policies produce revenues. They produce growth. They produce factories being built here,” he said.

But when asked about how Trump has imposed the tariffs against Canada, which has drawn retaliatory duties from the U.S. neighbor, Lutnick suggested that it only exists because of the United States.

“You have to remember, Canada exists leaning on our economy,” he told Fox News. “Let’s face it, cars used to be made in America. Why did Michigan’s cars move to Canada to break out of the [United Auto Workers]? That is just unfair to American workers and American union workers.”

He then asked “why we are doing all this business in Canada if they’re not respectful, if they’re not thankful, and they don’t want to do it?”

The U.S. Commerce secretary’s remarks came as he met with the premiers of several Canadian provinces on Thursday about the tariffs, which drew praise from Ontario Premier Doug Ford.

“We shared a tremendous amount of views back and forth, and I’m feeling very positive,” Ford told reporters near the U.S. Department of Commerce building in Washington. “I just look forward to reaching out again next week, but this, I can honestly say, was the best meeting I’ve ever had coming down here,” he added.

Earlier this week, Ford had ordered a 25 percent surcharge on energy exports to three U.S. states in response to the 25 percent U.S. tariff before rescinding that decision ahead of his meeting in Washington.

“Both parties are heated and the temperature needs to come down,” Ford told reporters, adding, “When you’re negotiating with someone [and] they call you and they hand over an olive branch, the worst thing I think I could do as premier of Ontario is ignore them.”
Reuters contributed to this report.