Trump Proposes No-Tax Plan for Middle Earners, Igniting Fiscal Debate

Washington, D.C. March 13, 2025 – President Donald Trump is mulling a bold new policy that could reshape the American tax landscape, proposing to eliminate federal income taxes for individuals earning less than $150,000 a year. The idea, revealed by Commerce Secretary Howard Lutnick during a CBS News interview, is being pitched as a lifeline for the nation’s middle class, a group Trump has long championed. Yet, the ambitious plan has sparked immediate debate over its feasibility and the ripple effects it could have on the federal budget.

Lutnick framed the proposal as a cornerstone of Trump’s economic vision, arguing it would put more money back into the pockets of working Americans. “The president wants to give the middle class a break—no taxes for those making under $150,000,” Lutnick said. “It’s about rewarding the backbone of this country.” The move would potentially affect millions of taxpayers, offering significant relief to households grappling with rising costs.

However, the plan’s unveiling has raised eyebrows among fiscal watchdogs and lawmakers, who warn of a gaping hole in government revenue. With no clear blueprint yet on the table, analysts estimate that exempting such a large swath of earners could slash federal income tax receipts by hundreds of billions annually. Critics are already questioning how the administration intends to plug the gap, with Lutnick hinting that increased tariffs on imported goods might serve as a counterbalance.

“Tariffs could be part of the solution,” Lutnick suggested, echoing Trump’s long-standing preference for protectionist trade policies. “We bring in revenue, protect American jobs, and fund the government—all while cutting taxes for the middle class.” Proponents argue this could kill two birds with one stone, boosting domestic industry while offsetting the tax cuts. But skeptics caution that higher tariffs could drive up consumer prices, potentially offsetting the benefits of the tax relief.

The proposal comes at a time when the U.S. economy is under scrutiny, with Trump touting his administration’s track record on job growth and deregulation. Supporters see the no-tax idea as a populist masterstroke, cementing his appeal among blue-collar voters. “This is Trump doubling down on his promise to prioritize the forgotten men and women,” said one GOP strategist.

On the other side, detractors warn of a fiscal reckoning. “You can’t just wave away that kind of revenue without a plan,” said a senior Democratic aide on Capitol Hill. “This could balloon the deficit or gut essential programs—someone’s got to pay for it.” Economists are already gaming out scenarios, with some predicting a need for deep spending cuts or alternative revenue streams beyond tariffs.

As of now, the White House has not released an official timeline or detailed framework for the policy, leaving room for speculation—and sparring. Trump’s team insists the numbers will add up, but the debate is only beginning. With Congress likely to play a pivotal role in any tax overhaul, the proposal sets the stage for a contentious battle in Washington, one that could define the president’s economic legacy. 17GEN4.com