Howard Lutnick, who is currently the U.S. Commerce Secretary, recently stated that President Donald Trump aims to implement a tax-free policy for individuals earning less than $150,000 annually.
🚨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
This would mean that a significant portion of the middle class could be relieved from federal income tax. This proposal might be part of the broader tax reform plan under the Trump administration, with the goal of providing economic benefits to ordinary Americans and boosting their purchasing power.
However, no official legislation has been passed regarding this policy yet, and it would require approval from Congress to be implemented.
Some experts believe that this could be highly popular among the middle class, but it might also lead to a reduction in government revenue, which could potentially be offset by other sources, such as increasing tariffs on foreign imports. Trump has previously mentioned using tariffs as an alternative to income tax.
It’s also worth noting that the current U.S. tax system already offers certain exemptions and deductions based on income levels.
For example, in 2025, the standard deduction is already around $15,000 for individuals and approximately $30,000 for married couples filing jointly. If income up to $150,000 were made entirely tax-free, it would represent a significant shift.
Some people believe that this could harm the government financially, and implementing it would require large-scale budget adjustments.