Details have been made clear from the Trump administration about plans to remove the Internal Revenue Service (IRS) and use tariffs to “explode the entire economy.”
“His goal is to abolish the Internal Revenue Service and have all outsiders pay,” Commerce Secretary Howard Lutnick told “Jesse Watters Primetime” on Wednesday.
“As the President said, mutual tariffs, you'll defeat you or we're going to raise ours. When we go to their level, we'll be equal to all the others. “We'll make USD 700 billion a year for this,” he expanded in the “American Newsroom.”
“And we have our deficits. And interest rates are destroyed and the entire economy explodes higher.”
Last month, President Donald Trump announced a new “external revenue service” that will be tasked with collecting revenue from tariffs and potentially replacing the IRS as America is “taxing itself.”
Trump boasted of bringing the US economy back to a “golden age.” When federal income taxes were created in 1913, economists questioned whether this approach could be feasible in the modern era, before government funding was born primarily from tariffs.
Lutnick has provided Watters with several examples of profitable tariff use use. There are flags like Liberia and Panama. None of them pay taxes… all super tankers, none pay taxes. Alcohol, all foreign alcohol, no tax. This will end under Donald Trump. ”
“And these taxes will be paid and the tax rates will drop for Americans,” he added. “That's what Donald Trump wants to do, balance his budget and cut taxes.”
Duties are taxes on imports, and in most cases, US-based importers pay to existing federal agency, the U.S. Customs and Border Protection (CBP).
The US, Canada and Mexico reached an agreement before the 25% tariff came into effect, with current full tariffs being imposed on Chinese exports.
“We have the power. We need to use tariffs. We need to use external revenue services to take care of America and reduce waste, which is fraud and abuse. And Let's make America great,” Lutnick told Watters.
“We mean not to say a deficit, essentially trying to eliminate our Internal Revenue Service and our taxes. Cut taxes, try and we're great So try to defeat them. And we'll collect the money.”
