United States Commerce Secretary, Howard Lutnick, has stated that President Donald Trump’s goal is to abolish the Internal Revenue Service (IRS) and replace it with an “External Revenue Service” that would shift the tax burden onto foreign entities.
Lutnick made this disclosure during an interview with Fox News on Wednesday, emphasizing that Trump’s economic plan aims to make “outsiders” bear the tax burden instead of American citizens.
His remarks come amid reports that the IRS is preparing to lay off thousands of workers as part of Trump’s broader initiative to restructure the federal tax system. The president has long advocated for reducing or eliminating federal income taxes, proposing instead to generate revenue through tariffs on imports and foreign transactions.
“Think about it—Donald Trump announces the External Revenue Service and his goal is very simple,” Lutnick said. “His goal is to abolish the Internal Revenue Service and let all the outsiders pay.”
Lutnick also suggested that the administration plans to cut government spending by reducing waste and fraud, referencing Elon Musk’s initiatives involving cryptocurrency Dogecoin (DOGE) as part of the strategy.
Meanwhile, Trump on Wednesday signed multiple executive orders, including one that terminates federal taxpayer-funded benefits for undocumented migrants.
Additionally, Trump recently imposed a 25% tariff on auto imports and introduced similar duties on semiconductors and pharmaceutical products, in line with his broader effort to reshape global trade policies.
