IRS In Trump’s Crosshairs As Administration Plans Tax Overhaul

The Trump administration is preparing to overhaul the US tax system, with plans to abolish the Internal Revenue Service (IRS) and shift tax burdens onto foreign corporations. Commerce Secretary Howard Lutnick confirmed the strategy during a Fox News interview, stating that President Donald Trump intends to replace the IRS with an External Revenue Service focused on collecting tariffs and trade duties.

Lutnick explained that foreign businesses have been taking advantage of US markets while avoiding taxation. Cruise lines and shipping companies, for example, frequently register under foreign flags to escape US tax obligations. Trump’s plan would close these loopholes, ensuring that industries profiting from America’s economy contribute to federal revenue.

Imported alcohol is another area where the administration sees room for reform. Many foreign brands enter the American market without paying significant taxes, while domestic producers are subject to stricter requirements. Trump’s initiative aims to level the playing field by imposing new duties on foreign products.

In addition to targeting tax loopholes, the president has introduced sweeping tariffs on foreign goods. New trade policies have placed tariffs on imports from Canada, Mexico, and China, with additional duties planned for industries such as automotive manufacturing and pharmaceuticals. The administration argues that these measures will generate revenue while protecting American workers.

Meanwhile, Elon Musk’s Department of Government Efficiency (DOGE) has begun a review of the IRS, assessing the agency’s structure and functions. DOGE staffers have reportedly requested detailed information on the IRS’s business units and operational risks, signaling that major changes could be on the way.

Trump’s tax plan is expected to face resistance from political opponents, but his administration remains committed to cutting government waste and restructuring the nation’s revenue system. By making foreign entities pay their fair share, Trump aims to ease the tax burden on American families and businesses.

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