Main summary
A legislation presented on Monday by Senator Josh Hawley proposes to provide tariff refund checks of at least $ 600 to US families, after President Donald Trump indicated that his administration “would consider” send checks based on the billions that their tariffs have collected. However, the payment program will probably lead to an increase in inflation.
Key facts
The Hawley bill proposes to establish a reimbursable fiscal loan for Americans using tariff income, which would send at least $ 600 to each adult and the eligible child eligible this year, subject to the approval of the Congress and Trump.
Last week, Trump said his administration was “thinking of a small refund” from tariff income that would affect “people of a certain level of income”, although he did not provide additional details.
A larger reimbursement check would be issued if tariff revenues exceed projections, according to the bill, which reduces reimbursement by 5%, which would reduce the amount of $ 600 to approximately 570 dollars for the joint declarations with a gross income adjusted greater than $ 150,000, a head of household with an income greater than $ 112,500 or an individual whose income exceeds 75,000 dollars.
You may be interested: Remittance reimbursement is a bad idea: small trade
Hawley said in a statement that his bill “would allow working Americans to benefit from wealth” collected by Trump’s tariffs.
Would inflation reimbursements affect tariffs?
It is likely that tariff refund checks, which involve payments to millions of American citizens, generate an increase in inflation. The stimulus checks approved by Trump and then President Joe Biden in 2020 and 2021, respectively, injected around 814 billion dollars into the economy, which contributed to inflation to reach a maximum level in 41 years, exceeding 9% in June 2022. The stimulus programs represented approximately one third of the inflation that year, according to the Bank of the Federal Reserve of St. Louis.
How much will Trump’s tariffs collect?
It is projected that the wide Trump tariffs to the US business partners will raise around 2.5 billion dollars in the next decade, according to the Tax Foundation, which stressed that the tariff He said last week to Fox Business that the US has raised 100 billion dollars in tariff revenues since Trump implemented his tariffs, and it is projected that the income reaches 300 billion dollars annually. Tariff revenues totaled approximately $ 27 billion in June, an increase of $ 4 billion compared to May, according to the Treasury Department.
You may be interested:
Trump tariffs could firing 0.4% inflation in the United States: Anierm
Surprising data
Trump announced an investment account last month with $ 1,000 in funds for children born in the US. Between January 1, 2025 and January 1, 2029, with all newborns automatically enrolled in the program. Parents or custodians of the account could provide up to 5,000 dollars in post-imposed contributions annually to the account, which would be invested in indexed funds. Some tax analysts argued that the accounts are too restrictive because they are linked to actions of shares and not less risky options such as bonds or effective. The accounts were approved under the “Great and beautiful bill” of Trump earlier this month.
Related topic
Trump announced an investment account last month with $ 1,000 in funds for children born in the US. Between January 1, 2025 and January 1, 2029, with all newborns automatically enrolled in the program. Parents or custodians of the account could provide up to 5,000 dollars in post-imposed contributions annually to the account, which would be invested in indexed funds. Some tax analysts argued that the accounts are too restrictive because they are linked to actions of shares and not less risky options such as bonds or effective. The accounts were approved under the “Great and beautiful bill” of Trump earlier this month.
This note was originally posted in Forbes US
Follow the information of the economy and finance in our specialized section
