President Donald Trump’s administration has proposed a transformative tax policy: eliminate federal income taxes for individuals earning less than $150,000 annually—or, as an alternative, impose a minimal flat rate tax for this group. Backed by Commerce Secretary Howard Lutnick’s vision of funding this shift through tariffs and other revenue strategies, this plan offers a compelling solution to bolster economic fairness and growth. Here’s why it deserves serious consideration.
Eliminating income taxes or setting a low flat rate for those under $150,000 would put thousands of dollars back into the pockets of over 90% of Americans, per 2022 Census data. The revenue gap—estimated at $4.5 trillion over a decade—could be offset by robust tariffs on foreign imports. By taxing overseas goods, the U.S. can protect domestic industries while funding this tax cut, reducing reliance on the IRS’s complex income tax system.
A no-tax or flat-rate approach simplifies the tax code dramatically. For earners below $150,000, this could mean no federal income tax filings—or a straightforward, predictable rate—freeing them from bureaucratic headaches. Pairing this with tariff revenue ensures that wealthier corporations and foreign entities shoulder more of the burden, creating a fairer system.
With extra income from this policy, middle- and working-class households could spend more on local goods and services, fueling small businesses and job creation. Tariffs would further incentivize domestic production, amplifying this effect. A low flat rate could achieve similar outcomes, offering flexibility while still easing financial pressures.
Lutnick’s plan to curb overseas tax evasion—targeting firms hiding profits in places like Ireland—pairs well with tariffs to reclaim lost revenue. This strengthens America’s fiscal position without punishing its own citizens, making the U.S. more competitive globally while rewarding its workers.
The proposal resonates widely, with many Americans praising it as a lifeline for the middle class. A tariff-supported tax cut or flat rate could rally bipartisan support by blending economic relief with a “Made in America” ethos.
Whether through full tax elimination or a low flat rate, this policy, funded by tariffs and evasion crackdowns, offers a practical path to economic relief and resilience. It’s a bold, workable idea that merits action.
