U.S. Commerce Secretary Howard Lutnick revealed that President Donald Trump is working toward a major tax overhaul that would eliminate federal income taxes for all Americans earning less than $150,000 annually.

Lutnick made the announcement during an interview with CBS News on Tuesday, outlining Trump’s vision for significant tax relief aimed at benefiting middle-class families.

“I know what his goal is: No tax for anybody who makes less than $150,000 a year. That’s his goal. That’s what I’m working for,” Lutnick stated, emphasizing the administration’s commitment to putting more money back into the hands of American workers.

JUST IN: Secretary of Commerce Howard Lutnick says President Trump’s goal is to eliminate taxes for anyone earning less than $150,000 per year. pic.twitter.com/3zSoqMsqMQ

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The Commerce Secretary provided additional details during a separate interview with Fox News, where he explained how the administration plans to finance this ambitious tax relief while working to balance the federal budget.

According to Lutnick, the Trump administration’s approach focuses on alternative revenue streams rather than increasing tax burdens on middle-class Americans.

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Key elements of the strategy include revenue from tariffs, eliminating offshore tax loopholes, and aggressively cutting government waste.

“When the President balances the budget, his first move is going to be—he has suggested that he would like to waive taxes for people earning under $150,000. That’s aspirational,” Lutnick said.

He went on to detail the administration’s budget strategy, explaining, “When we balance the budget—and let me tell you, he’s got a plan to do it—we are going to take a trillion dollars out of the waste, fraud, and abuse in all of our entitlements, systems, and government waste. Then we are going to raise a trillion dollars.”

Lutnick described several revenue sources the administration plans to leverage.

“That’s the Trump card. The Trump Gold Card is going to be a huge revenue producer. Tariffs are going to be a huge revenue producer. Then, we will get rid of all the tax scams—like Ireland making a $75 billion budget surplus,” he stated.

He also pointed to tax avoidance schemes that the administration intends to eliminate.

“We’ve got all the ships of the world flying the Liberian flag. I mean, imagine—a Liberian flag—just so they can avoid paying U.S. taxes,” Lutnick said.

The Trump administration’s broader tax plan includes additional cuts targeting specific income categories.

“You cut all that stuff out, and you’ve got a balanced budget. But on the way, we’re going to cut taxes—no tax on tips, no tax on overtime, and no tax on Social Security,” Lutnick said.

JUST IN: Commerce Secretary Howard Lutnick says President Trump wants to waive ALL taxes for Americans making under $150,000 per year. pic.twitter.com/11tHXofD7R

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The proposal marks one of the most significant tax reform efforts of Trump’s administration and is expected to generate substantial debate in Washington.

While the plan aims to reduce the financial burden on middle-class Americans, questions remain about how Congress will respond and what legislative steps will be required to enact such sweeping changes.

As Trump continues to lay out his economic agenda, the administration is expected to provide further details on how these tax cuts will be structured and implemented in the coming months.

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