According to brand new Commerce Secretary Howard Lutnick, President Donald Trump wants to abolish the IRS in favor of revenues from tariffs.
“His goal is to abolish the Internal Revenue Service and let all the outsiders pay,” Lutnick said while appearing on Fox News’ Jesse Watters Primetime. Lutnick believes that this plan would have stellar effects for the United States economy.
“As the president said, reciprocal tariffs, either you bring yours down or we’re going to bring ours up. If we go to their level, it will earn us $700 billion a year to be equal to everybody else,” he stated while speaking on Fox News’ America’s Newsroom. “And there goes our deficit. And interest rates come smashing down, and the whole economy explodes higher.”
President Trump has said in the past that he wants to put together an external revenue office which would obtain revenue that’s foreign-sourced. This could include income that is a result of tariffs.
“For far too long, we have relied on taxing our Great People using the Internal Revenue Service (IRS),” Trump said in a post on social media on January 14. “Through soft and pathetically weak Trade agreements, the American Economy has delivered growth and prosperity to the World, while taxing ourselves.”
While campaigning for his second term as president, Donald Trump has insisted that his plan regarding tariffs would help plunge the U.S. economy back into a “golden age.” He also detailed that before the 16th Amendment came to be, the U.S. government was funded from mostly tariffs.
Trump Admin’s Role In Enforcing Tax Payment From Certain Entities
While speaking on Jesse Watters Primetime, Lutnick explained that the Trump administration may look to end the lack of taxpaying from cruise lines. “Cruise ships — you ever see a cruise ship with an American flag on the back? They have flags of, like, Liberia or Panama. None of them pay taxes,” he said.
“Every supertanker, none pays taxes. Alcohol, all foreign alcohol, no taxes. This is going to end under Donald Trump. And those taxes are going to be paid and Americans’ tax rates are going to come down,” he continued. “That’s what Donald Trump wants to do, balance our budget and cut our taxes.”
Tariffs Implemented On Foreign Nations Under Trump
This month, President Donald Trump intended to put a 25% tariff on goods from Mexico and Canada if they didn’t do their part in limiting illegal immigration and the smuggling of drugs over their borders into the United States. Once these tariffs were threatened by Trump, both countries decided to meet his demands regarding border security. However, a 10% tariff was placed on imports from China.
“We’ve got the power. We’ve got to use tariffs. We’ve got to use the External Revenue Service to take care of America and cut the scams and the abuse, the waste. And let’s make America great,” Lutnick said during his Jesse Watters Primetime appearance.
“We mean ‘great’ by saying no deficit and, basically, try to eliminate the Internal Revenue Service and our taxes,” he went on. “Cut taxes, try, try to get them down because we’re great, and we collect the money.”
The Fairview Gazette will keep our readers updated on any new information regarding Trump’s plans involving tariffs and the IRS.
