Trump Administration Targets IRS As Plan To Shift Taxes To Foreign Entities Advances

President Donald Trump’s administration is working to replace the Internal Revenue Service (IRS) with an alternative tax collection system that focuses on tariffs and foreign trade revenue. Commerce Secretary Howard Lutnick detailed the plan in a Fox News interview, explaining that Trump’s vision includes dismantling the IRS and making international businesses pay more.

The plan aims to eliminate tax loopholes that allow foreign corporations to operate in US markets without contributing to federal revenue. Lutnick pointed to the cruise industry, where companies register ships in nations like Panama and Liberia to avoid taxation. Foreign alcohol imports also enter the US market without paying duties that American producers must cover.

Trump has already implemented tariffs on Canada, Mexico, and China, arguing that the US has relied too heavily on taxing its own citizens while allowing foreign companies to benefit without paying into the system. His administration is also considering similar taxes on auto manufacturers and semiconductor producers that rely on American consumers.

Elon Musk’s Department of Government Efficiency (DOGE) is now involved in reviewing the IRS. A DOGE official has been sent to IRS headquarters to evaluate its operations, including its long-term financial risks and internal business practices. The review suggests that the Trump administration is preparing to make significant changes to the tax collection system.

The IRS has long been unpopular, especially among conservatives. The agency faced widespread backlash after it was revealed that it had targeted conservative nonprofit groups under the Obama administration. More recently, Biden’s push to expand the IRS workforce by 87,000 employees was met with sharp criticism.

While eliminating the IRS would require congressional approval, Trump’s administration remains committed to shifting tax burdens away from Americans and onto international corporations that profit from US markets without contributing to federal revenue.

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