As US tariffs drive up prices, more and more Americans are already struggling to keep up. However, while the US Supreme Court is debating the legality of federal government tariffs, President Trump, eager to gain public support, recently made a generous promise: to give every American a $2,000 tariff "bonus."
This statement caused a stir among those present, as it would place a significant burden on the US government's budget. However, Treasury Secretary Bessant seemed to have found an excuse to deflect responsibility…
Bessant: Trump's "pie in the sky" needs congressional approval
On Sunday (July 16), Eastern Time, U.S. Treasury Secretary Bessant said that Trump's proposal to send a $2,000 "bonus" from tariff revenue to American citizens needs to be approved by Congress.
“This remains to be seen,” Bessant said. “We need relevant legislation to implement this measure.”
This statement stands in stark contrast to Trump's recent generous promises. Trump has been touting how much money they've raised this year through U.S. tariff revenue, while simultaneously talking about so-called "bonus" checks amid growing public discontent over the rising cost of living.
Last Friday, Eastern Time, Trump told reporters aboard Air Force One that he would send checks to "everyone except the rich" sometime next year.
“This is a huge sum of money,” he said at the time, “but we get a lot of revenue from tariffs. Tariffs enable us to distribute this dividend. We will also reduce our debt.”
Don't take empty promises too seriously.
According to one estimate, if Trump does deliver on his promise to pay $2,000 to all citizens, the plan could cost the U.S. government more than double its projected revenue for 2025.
The centrist oversight group responsible for developing a responsible federal budget estimates that the initial cost of the proposal would reach $600 billion if these "bonuses" were distributed in a manner similar to the stimulus payments issued by the government during the pandemic.
In the previous fiscal year ending this September, the United States' net tariff revenue totaled only $195 billion, while many economists predict that the Trump administration's net tariff revenue for the current fiscal year ending next September will be approximately $300 billion.
However, the American public may not need to take Trump's promises too seriously. In fact, just a few days ago, Bessant hinted that the so-called "bonus" might just be a "repackaging" of existing tax cuts.
He once stated that the $2,000 "dividend" could take many forms, possibly including tax cuts on the president's agenda, such as tax exemptions for tips, overtime pay, and Social Security income.
Bessant also said on Sunday that Americans will feel more economic relief early next year, citing tax cuts in the landmark policy bill signed by Trump earlier this year.
"So I expect that in the first two quarters of this fiscal year, we will see the inflation curve bend downwards, while the real income curve will rise sharply," he said.
(Article source: CLS)
