Trump’s Vision To Replace The IRS Moves Forward With Focus On Foreign Trade Revenues

The Trump administration is advancing its plan to overhaul the tax system by eliminating the Internal Revenue Service (IRS) and shifting tax collection to foreign corporations. Commerce Secretary Howard Lutnick confirmed the initiative in an interview, explaining that Trump’s goal is to ensure businesses that benefit from American markets contribute more to federal revenue.

Lutnick cited the cruise industry as an example, noting that nearly all major cruise lines operate under foreign flags, avoiding US taxes. Similarly, foreign-produced alcohol enters the country without facing the same tax burdens as domestically made products. Under Trump’s proposal, new duties would be imposed on these industries to generate revenue.

Trump’s strategy has already taken shape through recent tariff policies. The administration has imposed new taxes on imports from China, Mexico, and Canada, with some tariffs reaching 25%. Trump has also announced plans to introduce similar measures for automotive and semiconductor imports.

As part of this shift, Elon Musk’s Department of Government Efficiency (DOGE) is reviewing IRS operations. A DOGE representative recently visited the agency’s headquarters, requesting detailed reports on its business structure and financial risks. The move indicates that major changes could be coming for the IRS.

The agency has been widely criticized in recent years, particularly after the Biden administration’s efforts to expand its workforce. Many conservatives have argued that the IRS has become too powerful and inefficient, making it a prime target for reform under Trump’s administration.

While the plan to eliminate the IRS faces legislative hurdles, Trump’s administration continues to push forward, arguing that foreign corporations should bear a greater share of the tax burden rather than American workers.

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