"President Trump has bragged many times about the revenue tariffs are bringing in money paid by American businesses, who pass some of the costs on to consumers. Over the weekend, Trump pushed the idea of paying that money back to Americans, in the form of $2,000 payments. The idea is in no way a detailed proposal, but what Trump has said about it presents multiple steep challenges for the administration:"
"While details are scant, budget experts are already saying that there just isn't enough money for this idea. "Even with the most conservative estimates applied to it, it doesn't work," said Erica York, vice president of federal tax policy at the right-leaning Tax Foundation. By her math, if the rebates went to people making under $100,000 per year, that would cost way more than the amount of revenue tariffs will bring in."
President Trump has proposed returning tariff revenue to Americans through about $2,000 rebates targeted at middle- and lower-income people and using remaining tariff receipts to lower federal debt. Budget experts and the administration's own statements cast doubt on feasibility. Estimates from the Tax Foundation indicate rebates to households under $100,000 would exceed projected tariff revenue by at least $100 billion, and even targeting $75,000 earners would fall short. The plan lacks details, may increase the deficit instead of reducing it, and could undercut legal and policy arguments linking tariffs to government revenue.
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