Commerce Secretary Howard Lutnick on Friday said that he has received confirmation from the president that the U.S. will eliminate income taxes on households making less than $150K a year, if he successfully balances the budget. 

President Donald Trump previously teased eliminating the federal income tax in January, claiming that if his plans with tariffs work out then he would eliminate the federal tax.

Lutnick told the “All In” podcast that he was recently in the car with the president when the idea was floated again. 

“I’m in the car with him and I said we’re going to balance the budget,’ Lutnick said. “And I said, ‘But I have one favor to ask you: If we can balance the budget for you, will you agree to waive all income tax for every person who makes less than $150k a year in the United States of America?’ Which, by the way, is about 85% of Americans. 

"And the reason you want to work for Donald Trump is he looks at me, he goes, ‘Sure,'" the secretary continued. "You realize, the President of the United States said, ‘If you balance the budget, sure.’ And he’s not lying; he’s not kidding. He’s like, ‘Yeah.’”

The secretary highlighted how the United States did not have a federal income tax until 1913, and had used tariffs instead.

Trump has already implemented tariffs against China, and is expected to impose other tariffs against Mexico and Canada, the two nations with whom the U.S. shares a land border.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.