The Congressional Budget Office predicts that President Trump's tariffs could generate $2.8 trillion over a decade, potentially reducing the federal deficit. However, Sen. Tim Kaine warns that this revenue comes at a great cost to poor and middle-class families, as tariffs act like a regressive sales tax, disproportionately impacting these groups while benefiting the wealthiest. He argues that funding budgetary measures off the backs of everyday Americans is unfair, questioning whether it's right to reduce the deficit rather than ensure high-income earners contribute their fair share.
"Basically what the tariff revenue is doing, it's being used to finance a huge tax cut for the wealthiest, together with cuts in everyday programs that people rely on like Medicaid and nutrition assistance."
"The distributional effect of tariffs, because it's a sales tax and economists have long said sales taxes are regressive, they hit low and middle income people much harder than upper income people."
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