U.S. Secretary of Commerce Howard Lutnick appeared on Fox News Wednesday and talked about President Donald Trump’s plan to dismantle the Internal Revenue Service (IRS) as a step toward tax reductions.
Trump’s vision, Lutnick said on “Jesse Watters Primetime,” hinges on eliminating the IRS to shift the tax burden from American shoulders to foreign entities and companies operating under non-U.S. flags, such as cruise ships and supertankers that currently bypass U.S. taxes by registering in countries like Liberia or Panama. He also pointed out similar practices in the alcohol industry, where foreign products enter the U.S. market tax-free.
“His goal is to abolish the Internal Revenue Service and let all the outsiders pay.
I mean, this is someone who is focused on America. Let’s drive down our waste, foreign abuse,” Lutnick told Watters.
Lutnick discussed what he said was a common method that large vessels use to avoid U.S. taxation. Under Trump’s proposed policy, these loopholes would close, redirecting the fiscal responsibility to these outsiders and, thus, according to Trump’s plan, lower Americans’ tax rates.
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“I’ll give you an example, cruise ships. You ever see a cruise ship with an American flag on the back? They have flags of Liberia or Panama. None of them pay taxes. Every supertanker, none pays taxes. Alcohol, all foreign alcohol, no taxes,” Lutnick said.
The president’s plan, Lutnick said, does not stop at just reassigning tax burdens. He said the plan aims to balance the U.S. budget and slash personal taxes.
“This is going to end under Donald Trump, and those taxes are going to be paid, and Americans’ tax rates are going to come down. That’s what Donald Trump wants to do. Balance our budget and cut our taxes,” Lutnick said. “I mean, imagine a Democratic senator going against that. What planet are these people on? Well, you’re saying French.”
Lutnick also explained that they intend to use a combination of tariffs and Elon Musk’s DOGE purges of waste and fraud to cut spending and try to eliminate the IRS.
Meanwhile, Trump on Wednesday signed more executive orders including one terminating any federal taxpayer-funded benefits from going to or incentivizing migrants in the U.S. illegally.
Trump recently imposed auto tariffs of 25% and similar duties on semiconductors and pharmaceutical imports.
