Commerce secretary shares Trump's 'goal' to abolish the IRS
Published On Feb 20, 2025, 11:46 AM
Commerce Secretary Howard Lutnick discussed President Trump's proposal to abolish the IRS and instead fund the U.S. government through tariffs. The administration aims to cut taxes and balance the budget by replacing the IRS with a proposed 'External Revenue Service' that would collect revenue from tariffs, expected to generate significant income and potentially lower interest rates. However, economists have raised concerns about the feasibility of such a plan in today's economic environment.
Stock Forecasts
SPY
Negative
The proposal to significantly change the tax structure by abolishing the IRS and relying on tariffs could attract attention from investors, especially those focused on commodities and global trade. Companies that import goods could face higher costs, impacting their profitability. Conversely, U.S. manufacturers could benefit from reduced competition from imported goods if tariffs are increased. This political shift may increase volatility in the markets, particularly in the sectors reliant on imports.
Related News
New FTC chair Andrew Ferguson previews Trump admin's plans for the agency
Feb 20, 2025, 10:26 AM
President Donald Trump's new Federal Trade Commission Chairman Andrew Ferguson outlined the new administration's plans for antitrust enforcement and regulation.
A Trump DOGE Dividend Could Raise Inflation
Feb 20, 2025, 8:12 AM
President Trump floated giving taxpayers a piece of any savings that Elon Musk’s cost-cutting generates, which could reignite inflation.
Stock market today: S&P 500, Dow, Nasdaq futures retreat as investors eye Walmart outlook
Feb 20, 2025, 8:06 AM
Trump policy is in strong focus as tariffs and governmental cost cuts roll on.