Source: Cato Institute
by Colin Grabow & Clark Packard
“This is not a dividend at all. It’s a deficit-financed giveaway, arriving at a moment when the federal government is already projected to run a $1.8 trillion deficit. Worse still, the money is already spoken for. Congress counted tariff revenue as an offset when passing the president’s One Big Beautiful Bill tax reform package earlier this year. Revenue cannot fund both tax cuts and rebate checks. The administration is trying to spend the same dollar twice. But suppose, for the sake of argument, the money actually existed and the deficit didn’t matter. The proposal would still be misguided. For one thing, it’s economically pointless. Tariffs are taxes paid by Americans, not foreigners, and the government’s plan amounts to collecting that money in Washington, skimming off administrative costs, and then mailing a smaller amount back to the public.” (11/24/25)