Federal income taxes could be eliminated for Americans earning under $150,000 annually under a new proposal from President Donald Trump. This radical tax reform aims to transform how the government collects revenue.

Commerce Secretary Howard Lutnick revealed that instead of taxing individuals, the plan would shift revenue collection to external sources, including a "membership fee" on countries trading with the U.S. This proposal comes as Trump's 2017 tax cuts approach expiration.

Key impacts of the proposed plan:

• Middle-class savings: Workers earning $100,000 could save approximately $15,000 annually in federal taxes
• Economic benefits: Increased disposable income could boost consumer spending and economic growth
• Government funding: Alternative revenue sources would need to replace income taxes, which currently provide nearly 50% of federal funds
• International trade: New fees on trading partners could face retaliation and impact U.S. consumer prices

Potential challenges include:

• Congressional approval required for implementation
• Concerns about funding essential services like Social Security and Medicare
• Possible international trade tensions
• Political resistance from both parties

The proposal's fate remains uncertain, but it could represent one of the most significant changes to U.S. tax policy in history. More details are expected as the election approaches, with tax reform likely to be a central campaign issue.

🚨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

While the full plan may face modification during legislative review, it signals a potential shift toward reducing tax burdens on middle-class Americans. The administration is expected to provide additional details on funding mechanisms and implementation strategies in the coming weeks.

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