Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home News

Trump’s tariff strategy could pay for his tax bill, but only if they stick, experts warn

admin by admin
June 6, 2025
in News
0
Trump’s tariff strategy could pay for his tax bill, but only if they stick, experts warn
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
NEWYou can now listen to Fox News articles!

The White House and congressional Republicans have said that President Donald Trump’s sweeping tariffs would help pay for his mammoth tax bill, but tax experts say it depends on whether the president stays consistent.

Senate Republicans are in the midst of hashing out their plan to tweak and reshape the president’s ‘big, beautiful bill,’ which includes Trump’s desire to extend and make permanent his first-term tax policies.

However, the tax portion of the bill alone is expected to cost roughly $4 trillion. And when factoring in spending cuts and other revenue and economic drivers, the nonpartisan Congressional Budget Office found in a report earlier this week that, in all, the colossal legislative package would add $2.4 trillion to the deficit over the next decade.

The CBO, which has come under recent scrutiny from congressional Republicans unhappy with the scoring of the president’s ‘big, beautiful bill,’ also found that Trump’s tariffs would reduce the deficit by $2.8 trillion over the same period.

Joe Rosenberg, a senior fellow at the left-leaning Urban-Brookings Tax Policy Center, told Fox News Digital that the reconciliation package’s potential impact on the debt is more concerning now than in 2017, due to higher debt levels and rising interest rates.

When Republicans were putting together the president’s original tax package, the national debt was roughly $20 trillion. Eight years later, that number has ballooned to over $36 trillion and counting. 

Rosenberg contended that if the CBO’s report were taken as is, then Trump’s tariffs would make the bill deficit neutral and then some. But the report assumed that the eye-popping sums that Trump’s tariffs could generate were based on whether they were permanent.

‘I think what we’ve seen is that the tariff policy, again, seems to change day by day, hour by hour, minute by minute,’ he said. ‘And the administration is a little bit inconsistent about whether they view tariffs as purely a revenue source versus essentially a negotiating tool.’

The report also found that in exchange for trillions in deficit reduction, household wealth would drop, and the economy would shrink each year over the next decade.

Tad Dehaven, a policy analyst at the Cato Institute, argued that this factor—along with Trump’s tariffs being tied up in court over constitutional challenges and their shifting application—makes any projected benefits ‘extraordinarily unlikely.’

‘Let’s pretend that these tariffs are going to remain in place for 10 years at some level delineated today. That’s a major tax increase, so whatever alleged benefit you’re receiving from the tax cut in the reconciliation package, it’s being offset by a tax increase,’ he said. ‘And a rather economically inefficient one.’

Mike Palicz, director of tax policy at the conservative Americans for Tax Reform, scoffed at the CBO’s recent scoring, and lamented the agency as ‘a bunch of bean counters’ that often miss the mark on key pieces of legislation, like the president’s original Tax Cuts and Jobs Act.

He argued that none of the outside noise should matter, telling Fox News Digital that ‘you cannot go out and explain to a normal person or business that their taxes aren’t increasing next year if the Trump tax cuts are allowed to expire.’

‘That’s what the whole point of this exercise is, preventing the expiration of tax cuts, preventing the largest tax increase in American history,’ he said. ‘And no conservative, no Republican, should think that you address the deficit by raising taxes.’ 

This post appeared first on FOX NEWS

Previous Post

Mike Johnson says he hopes Trump, Musk ‘reconcile’ amid ongoing feud

Next Post

House Budget chairman explains why there’s no ‘pork’ in Trump tax bill after Elon Musk attacks

Next Post
House Budget chairman explains why there’s no ‘pork’ in Trump tax bill after Elon Musk attacks

House Budget chairman explains why there’s no ‘pork’ in Trump tax bill after Elon Musk attacks

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
Top 4 catalysts for the Dow Jones and S&P 500 this week

Top 4 catalysts for the Dow Jones and S&P 500 this week

May 25, 2025
Here’s why the German DAX index is soaring today

Here’s why the German DAX index is soaring today

May 26, 2025
Denny’s set to close dozens more locations this year, though some openings planned too

Denny’s set to close dozens more locations this year, though some openings planned too

February 16, 2025
FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

0
Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

0
As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

June 6, 2025
Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

June 6, 2025
Starlink reportedly secures key licence in India, moves closer to launching services

Starlink reportedly secures key licence in India, moves closer to launching services

June 6, 2025
US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

June 6, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025
    US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

    US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

    June 6, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved