Former President Donald Trump has revived the proposal for a stimulus payment to American citizens. This initiative aims to provide $2,000 per person, funded by tariff revenue from foreign imports. Trump shared this information via his Truth Social platform.
Details of the $2,000 Tariff Stimulus
Specifics about the payout remain limited, and the plan may require approval from Congress. Treasury Secretary Scott Bessent indicated he has yet to discuss the proposal with Trump. He mentioned that there are no concrete plans currently in progress.
According to Bessent, the initiative might coincide with significant tax reductions also featured in the president’s agenda. These include:
- No taxes on tips
- No taxes on overtime
- No taxes on Social Security
- Deductions available for auto loans
Comparison to Previous Stimulus Payments
Any potential payments might resemble the range of three checks distributed during the COVID-19 pandemic. These checks had income limitations, which were as follows:
- $150,000 for families
- $112,500 for heads of household
- $75,000 for individuals
Individuals exceeding these income brackets received reduced payments. The previous stimulus rounds were issued as follows:
- First round: April 2020, up to $1,200 per adult, $500 per qualifying child
- Second round: December 2020, up to $600 per person
- Third round: March 2021, up to $1,400 per individual
Financial Implications of the Proposed Payments
The financial impact of the $2,000 payments could be significant. According to the Committee for a Responsible Federal Budget, if payments were made to both adults and children, each round could cost approximately $600 billion.
Currently, Trump’s implemented tariffs have raised about $100 billion, with projections estimating an annual income of around $300 billion.
