November 21, 2025
Article from Fox Business by Eric Revell
Article Synopsis
President Trump has proposed issuing $2,000 “tariff dividends” to Americans by mid-2026, but a new analysis warns the plan could significantly worsen the federal deficit. The nonpartisan Committee for a Responsible Federal Budget estimates annual payments would cost about $600 billion, far exceeding the roughly $300 billion in tariffs projected to be raised each year.
If paid annually, the dividends would add about $6 trillion to deficits over a decade and push U.S. debt to 134% of GDP by 2035. Even under a revenue-neutral approach, the dividends could only be paid every other year unless courts overturn key tariffs.
