Trump Moves To Shut Down IRS As Plan To Shift Tax Burden Advances

The Trump administration is ramping up efforts to dismantle the Internal Revenue Service (IRS) and replace it with an alternative system that shifts the tax burden away from American workers. Commerce Secretary Howard Lutnick outlined the plan during an appearance on Fox News, explaining how the administration intends to collect more revenue from foreign businesses instead of relying on domestic taxation.

Trump’s proposal includes establishing an External Revenue Service to oversee tariffs, duties, and other trade-related taxes. The president has argued that for too long, foreign companies have taken advantage of the US economy while contributing little in return. This plan seeks to hold those entities accountable while reducing tax obligations for American citizens.

Lutnick pointed to major industries that have long evaded taxation, including cruise lines and shipping companies that register their vessels in countries like Liberia and Panama to avoid paying US taxes. Under Trump’s plan, these businesses would be required to pay into the system. The administration also wants to close loopholes that allow foreign alcohol imports to enter the country without the same tax burdens imposed on domestic products.

Tariffs on foreign imports are already a key part of Trump’s economic policy. New duties on goods from China, Canada, and Mexico have been announced, with some reaching 25%. The administration believes these tariffs will help replace lost revenue as the IRS is phased out.

Meanwhile, the Department of Government Efficiency (DOGE), led by Elon Musk, has begun a full-scale review of the IRS. Reports indicate that a DOGE official recently arrived at the agency’s headquarters to assess its financial operations and risk factors.

The IRS has faced strong opposition in recent years, particularly after the Biden administration moved to add tens of thousands of new employees. Conservatives have long criticized the agency’s size and power, making it a prime target for Trump’s push to streamline government operations.

RELATED ARTICLESMORE FROM AUTHOR