Lutnick: Trump Wants To Eliminate Taxes For Those Making Less Than $150,000
Commerce Secretary Howard Lutnick revealed that former President Donald Trump expressed a desire to abolish income taxes for individuals earning under $150,000 annually.
In a conversation shared on the “All In” podcast, Lutnick recounted a moment with Trump: “I’m in the car with him, and I said we’re going to balance the budget,” according to Just The News.
Lutnick then asked Trump for a commitment: “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,” he explained.
Trump’s response, according to Lutnick, was swift and affirmative. “And the reason you want to work for Donald Trump is he looks at me, he goes, ‘Sure.’” Lutnick added, “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.’”
Historically, the U.S. operated without an income tax until the ratification of the 16th Amendment in 1913, with government funding derived mainly from tariffs. Trump has expressed interest in returning to this system.
During a campaign event at his Florida resort, Trump declared, “America is going to be very rich again, and it’s going to happen very quickly.” He argued for a shift in taxation policy: “It’s time for the United States to return to the system that made us richer and more powerful than ever before.”
In January, he reiterated this stance in a speech supporting tariffs: “Instead of taxing our citizens to enrich foreign nations, we should be tariffing and taxing foreign nations to enrich our citizens.”
Earlier this year, the Republican-led House voted 216-214 to limit Congress’s ability to rapidly challenge tariffs imposed by presidents. This largely party-line vote delays lawmakers’ ability to revoke Trump-era tariffs and immigration actions for the remainder of the year.
Trump has justified the tariffs as necessary to correct trade imbalances, bring jobs back to the U.S., and curb the inflow of illegal drugs, according to Reuters.
The House vote effectively stalled an effort by Democratic Rep. Suzan DelBene of Washington to challenge Trump’s tariffs on Canadian and Mexican imports. DelBene had planned to push for a vote later this month.
In response to the measure, DelBene and Rep. Don Beyer (D-Va.) issued a joint statement criticizing House Republicans: “Every House Republican who voted for this measure is voting to give Trump expanded powers to raise taxes on American households through tariffs with full knowledge of how he is using those powers, and every Republican will own the economic consequences of that vote.”
However, House Speaker Mike Johnson (R-La.) defended the decision, telling Reuters, “This is an appropriate balance of powers and we trust this White House to do the right thing, and I think that was the right vote and it was reflected in the vote count.”
DelBene had been seeking to invoke the National Emergencies Act, which grants presidents special powers during declared emergencies—powers Trump cited when implementing his tariffs. The act allows Congress to revoke a president’s emergency authority by triggering a House vote within 15 days, contingent upon Senate approval.
However, the House’s new procedural rule effectively blocks such a vote from happening for the rest of 2025 by altering how calendar days are counted.
Greta Peisch, a former general counsel for the U.S. Trade Representative, pointed out the rarity of using emergency powers for tariffs: “The international emergency economic powers have not been used before to impose tariffs, and many members want to have a chance to weigh in,” she told Reuters. “Without a fast-track voting process, they are unlikely to have an opportunity to do so.”