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Tariff Dividend- US President Donald Trump has announced to give a tariff dividend of 2000 dollars to every American, but has not told in what form this benefit will be given. Will it be in cash or in the form of tax deduction?
New Delhi. US President Donald Trump announced that he is going to give a “tariff dividend” of at least $2,000 to every American. If we look at it in terms of India, this amount is approximately Rs 1,74,000 (according to Rs 87 per dollar). After Trump’s announcement, the big question is whether this money will really be given to the people in cash or will it be given in the form of any tax cut, concession or exemption? Trump also did not clarify how the tariff dividend would be given.
In a post on Truth Social, President Trump wrote, “Those who are against tariffs are idiots! We are now the richest, most respected country in the world, with near-zero inflation and a record stock market. 401ks are at an all-time high.” Promising a tariff dividend to Americans, he further wrote, “We are raising trillions of dollars and will soon begin paying off our massive $37 trillion debt. Record investment is taking place in America, factories are being built everywhere. At least $2000 per capita (except high income earners!) will be given to everyone.”
Besant indicated that cash will not be available.
Trump’s tariff dividend is being discussed across America. America’s Treasury Secretary Scott Besant has given some indication regarding how this will be achieved. In an ABC program, he said that Besant said that he has not talked to Trump about the tariff dividend, but the $2,000 dividend can come in many forms and in many ways. This could be in the form of tax cuts that are on the President’s agenda such as no tax on tips, no tax on overtime, no tax on Social Security and deductions on auto loans. It is clear that dividend may not be like a direct check payment, but can also come in the form of huge tax deductions.
Supreme Court has raised questions on tariff
The US Supreme Court has raised serious questions on Trump’s tariff policy. Several judges said Trump may be using “nearly unlimited powers” to impose import tariffs. There is also a possibility that many tariffs may be declared illegal. If this happens, the government may have to give a refund of more than 100 billion dollars.
