Trump Administration Floats Proposal to Eliminate Federal Taxes for Earners Under $150,000

The plan, described as aspirational by officials, raises questions about feasibility and potential impacts on Social Security and Medicare funding.

Commerce Secretary Howard Lutnick stated that President Trump aims to eliminate federal taxes for individuals earning less than $150,000 annually, calling it a transformative goal.
The proposal, if enacted, could save higher earners in this bracket up to $24,000 annually in federal income taxes, but it remains contingent on balancing the federal budget.
Experts warn that such a policy could significantly reduce federal revenue, jeopardizing the funding of Social Security and Medicare, which rely heavily on payroll taxes.
Critics argue that the plan may shift the tax burden to other sources, such as tariffs or consumption taxes, potentially impacting middle-class Americans disproportionately.
While the proposal has garnered enthusiasm from some supporters, others question its feasibility and legal implications, with some officials describing it as 'aspirational.'