Commerce Sec. Howard Lutnick Says “Social Security, Medicaid, and Medicare Are Wrong” [Video]

Commerce Secretary Howard Lutnick wasted no time making headlines, sitting down with Fox News host Jesse Watters to outline his aggressive economic vision—and his controversial take on entitlement programs.

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Lutnick, who has been on the job for just a day, claims that government waste and fraud are far worse than expected. He insists that billionaire Elon Musk is stepping in to help cut a trillion dollars in unnecessary spending. But it was his blunt remarks about Social Security, Medicaid, and Medicare that raised eyebrows.

“You know, Social Security is wrong. You know, Medicaid and Medicare are wrong,” Lutnick told Watters. “No one has ever really looked at these entitlements before, and it’s time to fix them.”

Lutnick argues that America’s entitlement programs are riddled with fraud and inefficiency. His solution? Deep spending cuts, along with an ambitious plan to raise revenue from foreign businesses and tax loophole closures.

“When I set up Doge with Elon back in October, I flew to Texas and got him on board,” Lutnick explained. “The agreement was simple—cut a trillion dollars of waste, fraud, and abuse.”

He claims Trump’s plan will also include getting rid of tax breaks for industries that exploit loopholes.

“Think about it—cruise ships, super tankers, foreign alcohol imports—they don’t pay taxes in America,” he said. “That’s all going to end under Trump.”

Beyond slashing entitlements, Lutnick says Trump has even bigger plans—abolishing the IRS altogether. He claims Trump wants to create an “External Revenue Service” that shifts more of the tax burden to foreign companies.

Lutnick even called out unfair trade policies, pointing out that French wine faces little taxation in the U.S., while Kentucky bourbon is hit with foreign tariffs.

Lutnick’s ultimate goal? Balancing the federal budget by the end of Trump’s term. He believes this can be done by eliminating inefficiencies and tapping into new revenue streams.

“The Democrats have been in the Senate for 20 years and haven’t cut a dollar-fifty,” Lutnick said. “Meanwhile, Elon Musk is stepping up to cut a trillion dollars.”