URGENT UPDATE: President Donald Trump has just announced a bold proposal to distribute $2,000 checks to all Americans, funded by revenues from tariffs, as he attempts to rally support amidst soaring disapproval ratings. In a post on October 29, 2023, Trump declared, “A dividend of at least $2000 a person (not including high-income people!) will be paid to everyone.”
This announcement comes as Trump faces a staggering 63% disapproval rating, according to a recent CNN/SSRS poll. The proposed checks are part of a strategy to regain favor with Americans, as the national sentiment appears increasingly skeptical of his administration.
Trump’s assertion is built on the idea that tariff revenues could provide substantial funding for these payments. Since April 2023, the administration has levied sweeping tariffs on global trading partners, leading to an average effective tariff rate of nearly 18%, the highest in nearly a century. Trump’s administration has reportedly collected almost $200 billion in customs duties during his presidency, according to a September report from the Treasury Department.
However, experts are questioning the feasibility of Trump’s proposal. Erica York, vice president of federal tax policy at the Tax Foundation, pointed out on social media that distributing $2,000 to eligible adults could cost around $300 billion, far exceeding the net revenue from tariffs. “The math gets worse accounting for the full budgetary impact of tariffs,” she noted, highlighting the complexities involved in funding such a program.
For the checks to be distributed, Trump would require approval from Congress. Earlier this year, Republican Senator Josh Hawley introduced a bill proposing $600 checks funded by tariff rebates, but Treasury Secretary Scott Bessent stated that collections would instead be used to reduce the federal deficit, which currently stands at a staggering $37 trillion.
In his Truth Social post, Trump emphasized the nation’s financial prowess, claiming, “We are now the Richest, Most Respected Country In the World, With Almost No Inflation, and A Record Stock Market Price.” He pointed to record highs in retirement accounts, stating that “401k’s are Highest EVER.”
Despite these claims, the reality for many Americans is more complex. The rising costs from tariffs have led to increased prices for consumers, with many now feeling the pinch of higher expenses. Trump’s proposal, while potentially appealing, raises questions about the actual benefits to American households and the broader economic implications.
As the political landscape evolves, all eyes will be on Congress to see if this proposal gains traction. With the midterm elections approaching, the urgency for Trump to secure voter support intensifies. Stay tuned for developing updates on this story and its potential impact on American households.
