“We’re going to be issuing dividends later on, somewhere prior to, you know, probably the middle of next year, a little bit later than that. Thousands of dollars for individuals of moderate income, middle income,” President Trump told reporters Monday in the Oval Office.
My mind immediately flashed back to 2020, when Donald J. Trump’s name appeared on COVID relief checks. According to ABC, experts called the Trump signature “unprecedented.”
So many questions about a promise from a man known for reneging on them (TACO) but equally known for putting his name on anything and everything.
First, if the government functions properly, Congress has to budget for and authorize these payments.
Second, there is no 2026-2027 budget, so this would have to be incorporated in January when Congress again takes up the budget. What U.S. Representative would vote no to handing out $2,000?
Third, Trump says the money will come from tariff income (which consumers and US companies are paying). How will he balance the budget without tariff income?
In February, he claimed tariff income would help balance the budget:
“We’re trying to balance the budget immediately, and because of the tariff income, which is really go- — it’s — it’s already turned out to be amazing, actually,” Trump said. “It’s really meant more for bringing countries and companies into our country, but it’s — the numbers are rather staggering, because we’re the big piggy bank that everybody wants to be.”
How much are tariffs costing consumers? From Yale (through October 17):
Current Tariff Rate: Consumers face an overall average effective tariff rate of 18.0%, the highest since 1934. After consumption shifts, the average tariff rate will be 17.0%, the highest since 1936…
All tariffs to date in 2025 raise about $2.5 trillion over 2026-35 (emphasis added).
Fourth, how to define what “moderate income, middle income” means? The median household income in the United States is $83,730. Just over half (54.8%) of American households make more than $75,999 according to Statista. Does it matter how many people reside in the household? Their ages? So many decisions.
In any case, right now the announcement is a deflection. Epstein. Venezuela. ICE. Comey. The National Guard. FEMA.
Regardless, the timing shows that it is a clear attempt to associate Republicans with largess (“affordability” crisis) right before the mid-term elections.
Known for gnawing at complex questions like a terrier with a bone. Digital evangelist, writer, teacher. Transplanted Southerner; teach newbies to ride motorcycles. @kegill (Twitter and Mastodon.social); wiredpen.com