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The US Secretary of Commerce, Howard Lutnick, announced the new plan of President Donald Trump, who wants to eliminate taxes for those earning less than $150,000 a year.
In an interview with CBS News, Lutnick shared Trump's fiscal goal.
"I know what Trump's goal is, which is zero taxes for those who earn less than $150,000 a year. That's his goal and that's what I'm working for," Lutnick said.
Donald Trump's new fiscal strategy
Trump's tax strategy also seeks to abolish taxes on tips and overtime, and to implement significant reductions in personal and corporate taxes.
Lutnick suggested that the deficit from these tax cuts could be offset by curbing international tax fraud, which he said is causing a loss of revenue to the United States, according to Yahoo!.
Lutnick also pointed to a US visa proposal of $5 million as a possible source of additional tax revenue. Trump's comprehensive tax plan, which includes $4.5 trillion in tax cuts, was approved in February by the Republican-controlled House of Representatives and is now awaiting a Senate vote.
While advocating for tax cuts, Trump is also working to reduce public spending and the country's fiscal deficit, Lutnick shared. However, these actions have generated controversy, especially the mass layoffs of federal employees in various agencies.
ing Trump's tariff stance, Lutnick explained that the president believes that industries such as steel and aluminum, pharmaceuticals, semiconductors and the automotive industry are vital to the U.S. economy, and seeks to promote their domestic development rather than relying on other countries.
"We need a steel and aluminum industry here in the United States to protect us for national security purposes. You can't be at war without producing steel; you can't allow another country to supply steel if you need it for a war," Lutnick said, who also claimed that tariffs will not create an inflationary situation.
Trump's tax proposal aligns with his goal of abolishing the Internal Revenue Service (IRS) and shifting the tax burden to "outsiders," as the commerce secretary stated in February.
The new law raises doubts among business owners
However, Lutnick's justification of Trump's tariff strategy has generated skepticism.
Last week, billionaire investor Mark Cuban criticized Lutnick's optimism about the benefits of tariffs and Trump's trade war on the US manufacturing sector.
Cuban, on the other hand, emphasized the importance of a service-oriented economy and US global technological dominance.
On Wednesday, JPMorgan chief economist Bruce Kasman warned of a 40% chance that the United States will enter a recession amid a stock sell-off and concern over tariffs.