U.S. President Donald Trump recently gave an update on the Russia-Ukraine talks during a speech at the Governors Working Sessions in the State Dining Room of the White House. Trump’s Commerce Secretary, Howard Lutnick, also made a significant announcement during the event.
Lutnick suggested that the Trump administration is considering scrapping federal income taxes altogether. Instead, the White House aims to eliminate the Internal Revenue Service (IRS) and rely on tariffs collected from other countries to fill the Treasury coffers. This bold move could potentially change the way the U.S. government generates revenue, as individual income taxes currently account for about 49 percent of federal revenue.
In an interview with Fox News, Lutnick emphasized the administration’s goal to establish the External Revenue Service and shift the burden of funding the government to external sources. He highlighted Elon Musk’s efforts to reduce waste and fraud in government departments as a key factor in enabling tax cuts. Musk, in a separate interview, detailed plans to trim the national debt by $1 trillion through his Department of Government Efficiency (Doge).
The potential overhaul of the U.S. tax system and government spending, as proposed by the Trump administration and supported by figures like Lutnick and Musk, could have far-reaching implications for the country’s financial landscape. As discussions around these plans continue to unfold, it remains to be seen how they will impact American taxpayers and the overall economy.
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Video “Donald Trump gives update on Russia-Ukraine talks” was uploaded on 02/21/2025 to Youtube Channel The Times and The Sunday Times