No Income Tax Under $150K? Game Changer or Fake Dreams?

From the Desk of Attorney Omar Zambrano: Helping 10,000 Families Become Debt-Free in 2025

Today is Tuesday, March 18, 2025—and I’m bringing you a bold headline that’s dividing households across America. Commerce Secretary Howard Lutnick, speaking on behalf of the Trump administration, just revealed a sweeping new vision: eliminating federal income taxes for anyone earning $150,000 or less per year.

No taxes on your paycheck. No taxes on overtime. No taxes on tips. Just your full income—untouched by the federal government.

To millions of Americans, this sounds like a miracle. But as someone who’s helped thousands of families deal with debt, I’ve learned that big promises come with bigger consequences.

What Was Announced: No Federal Income Tax for 85% of Americans

Commerce Secretary Howard Lutnick made it official in a March 17 CBS interview: the Trump administration wants to waive federal income tax for all Americans earning $150,000 or less.

That’s not just a tax break—it’s a complete cancellation of federal income tax for an estimated 130 million taxpayers, or around 85% of all tax filers.

The plan builds on earlier campaign promises to eliminate taxes on tips and overtime. Now, it takes a full leap—removing tax burdens from almost every working family in America.

Lutnick called the plan “aspirational,” but confirmed that it’s a key part of the administration’s strategy to win voter support and stimulate economic recovery. The timeline? Somewhere between two and four years. The goal is to have the plan in place before the 2026 midterms.

And the numbers? For a single filer earning $150,000 a year, this could mean keeping $37,000 more per year. That’s not a minor adjustment—it’s a financial reset.

How the Administration Plans to Pay for It

Here’s where things get complicated.

You can’t eliminate taxes for 85% of Americans without figuring out where that money comes from. Based on IRS and Statista data, the federal government stands to lose between $560 billion and $660 billion per year if this plan becomes law.

Secretary Lutnick laid out the framework in three parts:

First, there’s a promise to slash $1 trillion in federal spending by eliminating “waste, fraud, and abuse.” To manage this, the administration created the Department of Government Efficiency, or DOGE, headed by Elon Musk.

Second, there’s a plan to generate revenue through tariffs—reviving an earlier Trump-era strategy of charging foreign governments and companies higher fees for access to U.S. markets.

Third, and most controversial, there’s a new program called the Trump Gold Card. This would allow ultra-wealthy immigrants to fast-track U.S. citizenship for $5 million per applicant.

The administration claims that between DOGE’s savings, tariff revenue, and Gold Card applicants, the plan is fully fundable. But is it?

Let’s test the numbers.

The Numbers Don’t Lie—But They’re Not Adding Up Yet

Let’s start with DOGE. According to recent reports, DOGE has saved $18 billion since January 2025. Sounds impressive—until you realize that’s just 1.8% of the $1 trillion goal.

Even if DOGE maintained that pace—$18 billion every two months—that would total around $108 billion per year. Still far short of what’s needed to offset the massive loss in tax revenue.

Now let’s look at the Trump Gold Card.

To raise $500 billion to $1 trillion per year, the administration would need 100,000 to 200,000 ultra-wealthy immigrants to pay $5 million each, every single year.

But only about 2 million people in the entire world have the kind of wealth required to participate in this program—and there are already other ways for them to gain U.S. citizenship without spending $5 million.

Lutnick says tens of thousands have inquired, but that’s a far cry from the six-figure participation needed to hit those targets.

And then there are the tariffs.

Yes, tariffs raise revenue—but they also raise prices. American families have already felt it. After the most recent wave of tariffs, fast-food prices in California rose 14.5%, according to a report from the Berkeley Research Group.

This creates a dangerous cycle: income taxes go down, but prices go up—and for working-class families, that could feel like a net zero.

Is This a Dream or a Mirage? Let’s Look Back

This isn’t the first time Americans have been promised sweeping tax relief.

During the Clinton years, the government briefly ran a surplus—but only because the tech boom created massive revenue from capital gains taxes.

Under Reagan, we had massive tax cuts—but the deficit ballooned.

And before 1913, the U.S. had no federal income tax at all. But back then, the government’s entire annual budget was just $22.8 billion in today’s dollars.

Today, it’s $6.7 trillion. And most of that goes to programs that didn’t exist back then—Social Security, Medicare, defense, infrastructure, and debt service.

We are living in a fundamentally different economy than the one that existed before the income tax was created.

Eliminating taxes today would require slashing the government as we know it.

The Economic Reality If This Becomes Law

If this proposal somehow survives Congress and becomes law, here’s what it could mean for everyday people:

You keep every dollar of your paycheck up to $150,000. You don’t pay federal income taxes. You don’t pay tax on your tips. You don’t pay tax on your overtime.

That’s real money in people’s pockets.

People earning $50,000 would see about $6,500 in additional take-home pay per year. Someone earning $90,000 would keep about $16,000 more.

And a $150,000 salary would result in $37,000 of extra money per year.

That’s enough to:

Pay off credit card debt
Buy a used car in cash
Build emergency savings
Cover a year of rent in most cities
Invest in your child’s education or your retirement

Clients like Tom, a construction foreman in Pomona, told me:

“If this goes through, I can finally stop living paycheck to paycheck. I could catch up for the first time in 10 years.”

But again—that’s only if everything goes right.

If funding sources dry up, the fallout could be devastating.

What Happens If It Fails?

Let’s assume the administration can’t deliver $1 trillion in cuts, or Gold Card participation is too low, or tariffs trigger inflation.

What happens then?

Essential services could be slashed. Already, 10,000 USPS jobs are being cut this month.
Federal workers may face furloughs or layoffs—hurting middle-class employees who rely on those paychecks.
Debt servicing becomes more expensive as the deficit grows and interest rates rise.
Inflation could outpace relief, making your untaxed income worth less in real terms.

I’ve seen this movie before.

In 2008, I worked with families who believed their rising home equity would save them. Then the market collapsed—and everything disappeared.

This time, it’s tax relief and budget cuts, but the outcome could be the same if we don’t plan for both possibilities.

What You Can Do Right Now: Strategic Moves for 2025

No matter what happens with this proposal, you don’t need to wait on Washington to improve your finances. Here’s what I recommend:

✅ Diversify Your Income

Gig work, freelance jobs, and side hustles can generate $300–$1,000 per month. Use that to build reserves or pay down debt. The labor market is shifting fast—stay flexible.

✅ Cut Toxic Debt Before Interest Rates Climb

Credit card APRs are still averaging 23% to 30%. A $7,200 balance could cost you over $6,000 in interest over 5–6 years. Move balances to 0% APR cards while those offers still exist.

✅ Explore Bankruptcy if You’re Drowning in Bills

Bankruptcy isn’t failure—it’s a tool. Chapter 7 can wipe out unsecured debt, while Chapter 13 can restructure payments into a manageable plan. I’ve helped thousands do it.

✅ Build a Safety Net Now

Start saving aggressively—even if it’s just $100/month. Cut back on unnecessary expenses. Postpone luxury purchases. We’re entering a period of economic volatility.

How My Law Firm Helps You Stay Ahead

I’m not here to sell dreams. I’m here to protect your reality.

Whether the tax plan passes or not, you still need:

✔ Auto Loan Relief 🚗

We’ll help you restructure your payments or stop a repossession.

✔ Credit Card and Medical Debt 💳

We negotiate settlements or discharge balances when needed.

✔ Bankruptcy Protection 🛡

We file Chapter 7 or 13—fast, clean, and legally sound.

✔ Wage Garnishment Defense 💰

If your paycheck is being taken, we’ll stop the garnishment and defend you in court.

✔ Free Legal Consultations 💬

We’ll review your situation at no charge and give you a real plan—not a pitch.

📞 Call us today: (626) 338-5505

🌐 Visit: OmarZambrano.com

📱 WhatsApp: +1-626-550-7071

📍 Office: 12738 Ramona Blvd, Baldwin Park, CA 91706

Need help schedule a free consultation.

Closing Thoughts: This Is Bigger Than Taxes

On March 18, 2025, we’re not just talking about taxes—we’re talking about how this country works.

The promise of no income tax under $150K could revolutionize the economy—or collapse it under unrealistic expectations.

My job is to keep you ready either way.

Hope for the best. Plan for the rest. And never wait until you’re in crisis to get the support you deserve.

We’re here to help you move forward - no matter what comes next.

Attorney Omar Zambrano

Helping 10,000 Families Become Debt-Free in 2025

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