Experts Question Feasibility of Trump’s Proposed Tariff-Funded ‘Dividends‘
WASHINGTON – Former President Donald trump’s recent proposal to distribute funds generated from his tariffs directly to American households is facing scrutiny from economic analysts and raising questions about legal and logistical hurdles. While the Trump administration asserts a commitment to delivering thes “dividends,” experts suggest the plan is complex and its potential benefits are uncertain.
During a November 12 press briefing, White House Press Secretary Karoline Leavitt affirmed the administration’s seriousness about the proposal, stating, “The White House is committed to making that happen, yes, and we are currently exploring all legal options to get that done.” She added that the president’s economic advisors are actively investigating the feasibility of the plan.
treasury Secretary Scott Bessent,in a November 12 interview on Fox News,outlined potential options,including $2,000 rebates for families earning under $100,000. He also highlighted existing tax cuts from the “One Big Beautiful Bill Act” as effectively functioning as rebates, citing provisions like the elimination of taxes on tips, overtime, and Social Security, and also the planned $1,000 investment accounts – dubbed “Trump accounts” – for newborns starting next year.
However, analysis from organizations like the tax Policy Center suggests the financial impact of such a plan is considerable. While estimates vary, the Tax Policy Center projects an average tariff burden of $1,600 per household in 2026, even under a more favorable assessment.
A key obstacle to implementing the proposal lies in securing congressional approval. Any dividend payments would require authorization from Congress, similar to the three rounds of stimulus payments issued during the pandemic. According to a November 13 report by Politico,Republicans in Congress have expressed lukewarm support for the idea of tariff rebate checks.
