Trump’s bold plan: No taxes for Americans earning under $150K 

Commerce Secretary Howard Lutnick recently stated that President Trump aims to eliminate federal income taxes for Americans earning under $150,000 annually, contingent upon balancing the federal budget. Lutnick described this initiative as "aspirational" during an interview with Fox News.

To offset potential revenue losses from such tax cuts, the administration is considering measures like reducing government waste, restructuring the federal workforce, and increasing tariffs on international trade partners. Lutnick emphasized the importance of these tariffs, asserting they are "worth it" even if they lead to a recession, as they aim to stimulate domestic revenue and growth.

Additionally, Senate Republicans are formulating a tax reduction plan that could surpass $5 trillion over the next decade. This proposal includes extending existing tax cuts, reviving certain business tax benefits, expanding the child tax credit, and adjusting the state and local tax deduction cap. Discussions also encompass eliminating taxes on tips, overtime, and Social Security benefits.

Critics caution that these extensive tax cuts could significantly increase federal deficits. Some Republicans are contemplating a fiscal approach known as the "current policy baseline," which would allow these tax cuts without officially enlarging the deficit. However, experts warn this tactic could lead to substantial and enduring deficits.

In summary, while the administration's proposal to eliminate federal income taxes for individuals earning under $150,000 is ambitious and could benefit many taxpayers, it faces challenges related to fiscal sustainability and potential economic repercussions.