IRS In Trump’s Crosshairs As Administration Shifts Focus To Foreign Revenue

The Trump administration is advancing plans to dismantle the Internal Revenue Service (IRS) and replace it with a system designed to collect more tax revenue from foreign businesses rather than American workers. Commerce Secretary Howard Lutnick explained the proposal during a Fox News interview, saying Trump’s strategy involves eliminating the IRS and shifting the financial burden onto foreign entities that benefit from the US economy.

Lutnick highlighted industries that have long evaded US taxes, including the shipping and cruise industries. Many companies register their vessels under foreign flags in nations like Panama and Liberia, allowing them to avoid paying into the US tax system. Trump’s plan would close these loopholes and require those businesses to contribute their share.

Another target of the plan is foreign alcohol imports, which often enter the US market without being taxed at the same rate as domestic products. The administration aims to ensure that all imported goods face appropriate tariffs to generate additional revenue.

To implement these changes, Trump has already signed executive orders imposing tariffs on goods from China, Canada, and Mexico. More tariffs are expected, particularly on industries such as automotive and semiconductor manufacturing. These measures align with the administration’s broader goal of increasing revenue without raising taxes on American citizens.

The Department of Government Efficiency (DOGE), led by Elon Musk, has launched an internal audit of the IRS. A DOGE representative has been sent to IRS headquarters to gather information on the agency’s business operations, suggesting that structural changes are on the horizon.

The IRS has long been viewed as one of the least popular government agencies, particularly among conservatives who see it as an overreaching bureaucracy. With Trump’s plan to replace it, his administration is making a direct effort to reshape how the federal government collects revenue.

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