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$2,000 Tariff Checks Are a Good Idea Badly Planned
Experts suggest income-based, phased rebates to reduce the disproportionate tariff costs on low-income households, citing a 2.4% income burden for the lowest decile, according to Yale's Budget Lab.
- This year, economists and policy experts proposed smaller, recurring tariff rebates tied to household income and phased out as income rises, delivered quarterly or monthly.
- About $200 billion in tariffs this year act as a regressive consumption tax, with importers passing costs to consumers, and median household costs reaching $1,400.
- Canada's approach pairs a VAT with quarterly credits that almost entirely reversed the tax's regressivity, and the government doubled the credit for six months in 2022.
- Despite experts' recommendations, President Donald Trump is promoting a $2,000 one-time check funded by tariffs, but Republicans and policy economists warn it is poorly targeted and face political resistance.
- Smaller repeated payments would be less inflationary, spreading boosts to aggregate demand and protecting low-income households from recession impacts worsened by regressive taxes.
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24 Articles
Comment: Here’s how Trump can make his tariff rebates work well
HeraldNet.com HeraldNet.com - Everett and Snohomish County news from The Daily Herald in Everett, Washington Just don’t tell him the idea uses Canada’s approach regarding rebates for its consumption tax. Comment: Here’s how Trump can make his tariff rebates work well Wire Service
Breitbart Business Digest: Trump's Tariffs Can Fund Tax Relief for American Families
President Trump has floated the idea of sending $2,000 checks to most Americans, funded by tariff revenue. The post Breitbart Business Digest: Trump’s Tariffs Can Fund Tax Relief for American Families appeared first on Breitbart.
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Total News Sources24
Leaning Left3Leaning Right1Center19Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
13%
C 83%
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