Trump's Plan to Send $2,000 Dividend Funded by Tariffs Raises Questions About Feasibility and Impact on Inflation.
In a recent post on Truth Social, President Donald Trump announced plans to give most Americans a one-time payment of at least $2000 each, funded by tariffs imposed on imported goods. The proposal has sparked debate among experts about its feasibility, potential impact on inflation, and how it would be implemented.
According to Treasury Secretary Scott Bessent, the rebate would likely be given to families earning less than $100,000 a year, although the threshold is still under discussion. However, some economists argue that there may not be enough tariff revenue to cover such a large-scale payout.
Erica York, vice president of federal tax policy at the Tax Foundation, estimates that paying $2,000 to 150 million adults would require roughly $300 billion in revenue, which could strain the national debt and offset only about 24 cents of income and payroll tax revenue per dollar of tariff revenue. She also warns that tariffs have raised a relatively small amount of net revenue compared to Trump's proposed rebate.
Additionally, sending new tariff checks to almost every household could risk boosting inflation by stimulating demand for goods and services without increasing their supply, which could exacerbate existing inflationary pressures.
While the White House disputes these claims, experts caution that there are still many unknowns about the plan, including how it would be disbursed and whether it would indeed increase the national debt. The proposal has sparked concerns among some lawmakers and economists about its potential impact on the economy and the national budget.
In a recent post on Truth Social, President Donald Trump announced plans to give most Americans a one-time payment of at least $2000 each, funded by tariffs imposed on imported goods. The proposal has sparked debate among experts about its feasibility, potential impact on inflation, and how it would be implemented.
According to Treasury Secretary Scott Bessent, the rebate would likely be given to families earning less than $100,000 a year, although the threshold is still under discussion. However, some economists argue that there may not be enough tariff revenue to cover such a large-scale payout.
Erica York, vice president of federal tax policy at the Tax Foundation, estimates that paying $2,000 to 150 million adults would require roughly $300 billion in revenue, which could strain the national debt and offset only about 24 cents of income and payroll tax revenue per dollar of tariff revenue. She also warns that tariffs have raised a relatively small amount of net revenue compared to Trump's proposed rebate.
Additionally, sending new tariff checks to almost every household could risk boosting inflation by stimulating demand for goods and services without increasing their supply, which could exacerbate existing inflationary pressures.
While the White House disputes these claims, experts caution that there are still many unknowns about the plan, including how it would be disbursed and whether it would indeed increase the national debt. The proposal has sparked concerns among some lawmakers and economists about its potential impact on the economy and the national budget.
. I mean, who doesn't want more money, right? But at what cost? Adding to our national debt isn't something I'd like to see happen, especially when we're already struggling with inflation and interest rates 
. And have you thought about the impact on small businesses and manufacturers who would be stuck paying these tariffs? It just seems like more red tape and fewer jobs for regular folks 
. Can't we think of other ways to help Americans out, like investing in our infrastructure or education system? 
Maybe we can just wait and see how this all plays out before jumping to conclusions. After all, it's not like he's never surprised us before 
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. i'm not saying trump's a bad guy or anything, but this plan just seems like a bunch of hooey 
. And what about inflation? We already got prices soaring as it is, the last thing we need is some more money chasing after stuff 
. I mean, I'm all for helping out folks, but this plan just seems too good (and bad?) to be true. How are they gonna fund it? The national debt's already a mess 
. This whole thing has me feeling like I'm stuck in some kinda economic whack-a-mole 
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Isn't it more likely they'll just find ways to work around this and keep profiting? 
Remember those? We used to dream of winning the lottery or inheriting money from a rich aunt. This plan sounds like it's straight out of one of those movies where the billionaire just decides to give away their fortune. 
. Maybe they can find a way to make this thing work, or at least test out some smaller-scale versions before goin' full-on 
. Fingers crossed! 
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i mean, 2000 bucks might sound nice but like, how are they gonna make that happen without just printing more money? 
. And what's the plan for people who can't afford to pay taxes on their rebate? It's gonna be some kinda nightmare 
. Plus, I don't trust these tariffs as much as Trump says they are gonna work 
... adding another $300 billion to that doesn't seem like a good idea to me 
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how's it gonna affect inflation if we're already seeing rising prices? 
Plus, if ppl are makin' more money from tariffs, that's just good ol' fashioned economic growth 
The White House should give us more info on how this plan would work & what kinda impact it'll have on our economy 
Plus, who doesn't love the idea of getting some cash?