Commerce Secretary Howard Lutnick delivered a confident forecast during an interview with Fox Business, asserting that “most Americans” will benefit from tax cuts under President Donald Trump’s second term. Lutnick, the CEO of Cantor Fitzgerald and a seasoned Wall Street figure, framed the policy as a linchpin of Trump’s economic agenda, drawing parallels to the Tax Cuts and Jobs Act of 2017 (TCJA). That legislation slashed the corporate tax rate from 35% to 21% and provided temporary individual tax relief, set to expire in 2025 (IRS, 2017).
Lutnick’s Speech
Lutnick’s Fox Business appearance was a platform to outline Trump’s economic priorities, with tax cuts at the forefront. “The President’s plan is simple: lower taxes, more jobs, and a stronger economy for everyone,” he declared, emphasizing broad-based relief. He highlighted the TCJA’s past success, noting how it spurred corporate investment and consumer spending, though he acknowledged critics who argue it disproportionately favored the wealthy. Lutnick suggested the new administration aims to address such critiques by ensuring “most Americans” feel the impact, potentially through extending individual tax brackets, currently ranging from 10% to 37%, or introducing targeted deductions for middle-class families and small businesses (Tax Foundation, 2025).
He also tied tax policy to job creation, a recurring Trump theme. “When you put money back in people’s pockets, they spend, businesses grow, and jobs follow,” Lutnick said, echoing economic theories of trickle-down growth. While specifics were sparse, he hinted at a synergy with his Commerce Department role, which oversees trade and industrial policy. This could mean pairing tax cuts with tariffs used extensively in Trump’s first term to protect U.S. industries. Lutnick’s Wall Street background lends credibility to his optimism, but his speech left open questions about funding and scope, given the national debt’s climb to $34 trillion (U.S. Treasury, January 2025).
Economic and Political Implications
The implications of Lutnick’s announcement are multifaceted. Economically, extending the TCJA could stimulate short-term growth, as it did post-2017 when GDP rose by 2.5% annually. However, the Congressional Budget Office warns that the 2017 cuts added $1.9 trillion to the deficit over a decade, a burden that could balloon further without offsetting revenue (CBO, 2024). Analysts suggest Trump’s team might propose slashing federal spending, potentially targeting social programs, or rely on optimistic growth projections to justify the cuts (Tax Foundation, 2025). Lutnick’s focus on “most Americans” implies a populist tilt, but the devil lies in the details: will relief reach the middle class, or again skew toward corporations and high earners?
