President Trump has proposed a $2,000 dividend to be funded by tariffs, which he claims will drive "record investment" in US manufacturing. The plan would give most Americans the payment, with some experts arguing that it's unlikely to materialize due to insufficient tariff revenue.
The president's suggestion comes as his administration faces scrutiny over its use of the 1977 International Emergency Economic Powers Act (IEEPA) to authorize wide-ranging import duties. Speaking from the White House on Monday, Trump claimed that his administration has taken in "tremendous amounts of money" from tariffs and plans to issue dividends in the middle of next year.
However, economists are skeptical about the plan's feasibility. According to Erica York, vice president of federal tax policy at the Tax Foundation, paying $2,000 to 150 million adults earning below $100,000 would require roughly $300 billion in revenue. Yet, new tariffs have raised only $120 billion so far.
The proposal also raises concerns about inflation. Stimulus checks during the pandemic were credited with boosting inflation, which could happen again if the new tariff checks stimulate demand without increasing supply. York warned that the stimulus checks likely boosted inflation by one to three percentage points and that a similar impact is unlikely with this plan.
While the White House argues that economists are baselessly speculating about the possible inflationary impact, experts argue that the math doesn't add up. The proposed rebate would increase the budget deficit and offset only 24 cents of income and payroll tax revenue for every dollar of tariff revenue generated.
The president's suggestion comes as his administration faces scrutiny over its use of the 1977 International Emergency Economic Powers Act (IEEPA) to authorize wide-ranging import duties. Speaking from the White House on Monday, Trump claimed that his administration has taken in "tremendous amounts of money" from tariffs and plans to issue dividends in the middle of next year.
However, economists are skeptical about the plan's feasibility. According to Erica York, vice president of federal tax policy at the Tax Foundation, paying $2,000 to 150 million adults earning below $100,000 would require roughly $300 billion in revenue. Yet, new tariffs have raised only $120 billion so far.
The proposal also raises concerns about inflation. Stimulus checks during the pandemic were credited with boosting inflation, which could happen again if the new tariff checks stimulate demand without increasing supply. York warned that the stimulus checks likely boosted inflation by one to three percentage points and that a similar impact is unlikely with this plan.
While the White House argues that economists are baselessly speculating about the possible inflationary impact, experts argue that the math doesn't add up. The proposed rebate would increase the budget deficit and offset only 24 cents of income and payroll tax revenue for every dollar of tariff revenue generated.
. I mean, a $2k dividend? That's crazy talk! How do they expect people to make ends meet with that? 
It sounds like a nice gesture, but where's the real money coming from? They're basically saying "oh, we'll just tax some imports and voilà!" 
I'm not buying it. The math just doesn't add up. And what about inflation? You don't want to mess with that, trust me 
.
. $2,000 dividend? Sounds like a sweet deal, but where's the catch? Like with stimulus checks back in the pandemic, people get a little too excited and inflation takes off 
. And Trump is relying on tariffs to fund this? That's just crazy talk 
. I'm not saying it couldn't work out, but let's be realistic here...
Like, hello, that's not how economics works... or at least, not according to the experts 
. And what about the inflation concerns? We all remember how stimulus checks during the pandemic were like, "Hey, let's give everyone more money and see what happens!" 
I'm not saying it's impossible to implement without inflation, but the math just doesn't seem right... unless you're playing a game of economic whack-a-mole 
... I mean, I get it, we wanna boost manufacturing and stuff, but $2k dividends from tariffs? That sounds like a pipe dream to me 
.
, but come on, folks! Be realistic here 
. We need solid financial planning, not some pie-in-the-sky scheme that sounds like a sales pitch from a timeshare meeting 
. I mean, what about the budget deficit? That's just gonna add more debt for future generations 
. The math just doesn't add up and experts are right to be skeptical about it being feasible. Maybe Trump is just trying to distract us from other issues? 
.
. But at the same time, the president's plan does seem like it could provide a nice financial boost for many Americans 
.
this is gonna be a wild ride... I mean, $2k dividend sounds like a pretty cool idea, but come on, we all know how tariffs work 
. Trump's plan seems like more of a publicity stunt than actual economic policy 
. Let's keep an eye on this one, folks