Commerce Secretary Howard Lutnick reveals former President Donald Trump's ambitious plan to dismantle the Internal Revenue Service.
According to The Daily Caller, the strategy aims to shift tax responsibilities from American citizens to foreign entities and companies operating under non-U.S. flags.
The proposal targets vessels and companies that currently evade U.S. taxation through foreign registration practices. Lutnick highlighted how cruise ships and supertankers register in countries like Liberia or Panama to bypass American tax obligations, while foreign alcohol producers enjoy tax-free entry into U.S. markets.
Lutnick, speaking on Fox News' "Jesse Watters Primetime," explained how Trump's administration plans to close these tax loopholes.
He emphasized the systematic abuse of the current system by foreign entities who benefit from U.S. markets without contributing their fair share. The commerce secretary painted a picture of widespread tax avoidance among international maritime operators and beverage companies.
During his appearance, Lutnick shared Trump's vision for tax reform, stating:
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.
The plan extends beyond merely redistributing tax burdens. Trump's administration aims to achieve two major objectives: balancing the federal budget while simultaneously reducing personal tax rates for American citizens. This dual approach represents a significant shift in U.S. tax policy.
Elon Musk's Department of Government Efficiency has already begun preliminary work on the proposed changes. Staff member Gavin Kliger visited IRS headquarters to evaluate current operations and gather information about various business units' functions and risks. This assessment marks the first concrete step toward potential agency restructuring.
Recent polling data reveals widespread public dissatisfaction with the IRS. A July Pew Research survey showed that 50% of Americans view the agency unfavorably, with particularly strong opposition among Republican voters. This negative perception stems partly from past controversies, including the agency's admitted improper scrutiny of conservative tax-exempt groups.
The IRS has undergone significant changes in recent years. Under former President Biden's administration, the agency planned to hire 87,000 new employees over a decade. Former IRS Commissioner Danny Werfel aimed to expand the workforce to 100,000 employees as part of a modernization initiative before his resignation following Trump's return to office.
Trump's proposed overhaul of the U.S. tax system represents a departure from traditional approaches to revenue collection. The plan aims to protect American taxpayers while ensuring foreign entities operating in U.S. markets contribute their fair share to the nation's revenue stream.
Lutnick and other administration officials continue to promote this vision as a path toward fiscal responsibility and reduced tax burden for American citizens.
The initiative combines IRS restructuring with broader tax reform goals. Trump's administration seeks to address long-standing concerns about tax fairness while implementing significant changes to federal revenue collection methods. As these plans develop, the focus remains on shifting tax responsibilities from American citizens to foreign entities benefiting from U.S. markets.
