Trump administration proposes eliminating income taxes for low earners

Commerce Secretary Howard Lutnick announced that the Trump administration plans to eliminate income taxes for individuals earning $150,000 or less. This change would leave only seven percent of Americans paying income taxes, shifting the burden to a small group of wealthy taxpayers. Currently, the top one percent of earners pay about 40 percent of income taxes. The proposed plan would make the tax system more progressive, increasing reliance on a few affluent citizens for tax revenue. The administration's goal to balance the budget while eliminating these taxes raises concerns about feasibility. The budget deficit is nearly $2 trillion, and without significant changes to other programs, achieving this balance may be challenging.