Trump Just Agreed to Eliminate Taxes for People Making Less Than $150K, But There’s a Catch

Commerce Secretary Howard Lutnick says President Donald Trump is on board with a plan to end taxes for anyone earning less than $150,000 a year.

During his appearance on the “All In” podcast, Lutnick said there is a condition on the concept, according to a video posted to X.

“I’m in the car with him and I said ‘we’re going to balance the budget,’ Lutnick explained. “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 $150,000 a year in the United States of America?’”

Commerce Secretary @howardlutnick says eliminating income taxes is a real possibility👀

“I’m in the car with [@realDonaldTrump] … I said ‘I have one favor to ask you, if we can balance the budget for you, will you agree to waive all income taxes for every person who makes less… pic.twitter.com/aDnXcY2KbN

— Trump War Room (@TrumpWarRoom) March 21, 2025

Lutnick noted that such a deal would cover about 85 percent of Americans, and then said Trump’s reaction was priceless.

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

Lutnick noted that tariffs are part of America’s roots, according to the Daily Wire.

“America was built on tariffs with no income tax. No income tax until 1913. None, greatest, richest country in the world. So when Donald Trump says, ‘Make America Great Again,’ what he’s talking about is from 1880 to 1913, when the country had so much money that we had blue-ribbon commissions to try to figure out how to spend the money. And no income tax.

“Then we put in the income tax in 1913. Why? Because we’re entering World War I, and don’t we all need to contribute to protect democracy and protect our way of life?” he said.

In a video posted to X of an interview Lutnick had with CBS, he said Trump could bring a tax revolution to America.

“How about no tax on tips? How about no tax on overtime? How about no Social Security? How about all those things?” Lutnick said, referring to the deduction workers pay for Social Security, not the benefits they receive. (start of vid)

🚨BREAKING: Commerce Secretary Howard Lutnick says President Trump wants no taxes for people who make less than $150,000 a year.
pic.twitter.com/J1COS3sMxm

— Benny Johnson (@bennyjohnson) March 13, 2025

“These are the kind of thoughts that will change America,” he said.

“I know what his goal is,” Lutnick said, referring to Trump. “no tax, for anybody who makes less than $150,000 a year. That’s his goal. That’s what I’m working for

Elsewhere, Lutnick said a bumpy ride for the economy in the short term is worth it to bring America where Trump wants it to be.

“These policies are the most important thing America has ever had,” Lutnick told CBS “It’s worth it.”

“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.

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