Posted on 08/04/2025 8:35:38 PM PDT by SeekAndFind
President Donald Trump suggested on Sunday that his administration could distribute dividends from tariff revenues to Americans with certain income levels.
Speaking to reporters before boarding Air Force One, Trump said that a distribution of dividends to selected U.S. households is possible, even as the government works to pay down the national debt.
“We have a lot of money coming in, much more money than the country has ever seen, by hundreds of billions of dollars,” he said. “There could be a distribution for dividends to the people of our country. I would say for people that would be middle-income people and lower-income people, we could do a dividend.”
He also reaffirmed the government’s commitment to lower drug prices, in line with his May 12 executive order that requires drug manufacturers to offer American consumers “the most-favored-nation lowest price” for prescription drugs.
“We‘ll be dropping drug prices, it will start over the next two to three months, by 1,200, 1,300 and even 1,400 percent,” he said. “We will pay as low as the lowest nation in the world.”
Trump did not specify the potential amount of dividends he could distribute. The U.S. government collected $28 billion in tariff revenues in July, marking a record monthly high and bringing the total revenue for the fiscal year to more than $151 billion, according to Treasury data.
Treasury Secretary Scott Bessent told last month’s cabinet meeting that tariff collections could reach $300 billion by the end of the year, as a result of Trump’s trade campaign.
Trump imposed a 10 percent baseline tariff on nearly all U.S. trading partners in April, along with reciprocal tariffs that vary depending on their trade barriers with the United States, as part of an effort to address trade deficits. He later implemented a 90-day pause on the reciprocal tariffs, before extending the reprieve to Aug. 1 to allow time for negotiations.
The president signed an executive order on July 31 imposing reciprocal tariffs of between 10 percent and 41 percent on more than 60 U.S. trading partners. The new tariff rates, which are set to take effect on Aug. 7, were determined based on whether each nation has reached an agreement with the United States and the nature of those agreements.
In his order, Trump stated that some trading partners have agreed to or are close to making “meaningful trade and security commitments with the United States,” while others have proposed terms that he thinks fail to adequately address trade imbalances or “align sufficiently with the United States on economic and national-security matters.”
“There are also some trading partners that have failed to engage in negotiations with the United States or to take adequate steps to align sufficiently with the United States on economic and national security matters,” the order stated.
The Trump administration is working on a trade deal with China, which is subject to an extended deadline through Aug. 12, following a May 12 agreement in which the two largest economies agreed to lower tariffs and roll back certain trade restrictions for 90 days.
Joseph Lord and Reuters contributed to this report.
I’d rather we pay down the debt as soon as we can.
Pay off the debt first.
I’d rather pay down the debt.
I don’t want it going to welfare recipients that could work but don’t. Why give them money while we’re still going to have to pay off the debt? They don’t contribute so don’t give them more for nothing.
I would rather have the money. The debt will never be paid down. My paltry dividend would be but a grain of sand compared to all the beaches in the world. Most of our taxation has been pure theft. This is just a micro restitution.
Pay down the debt. Get down to $30T before election ‘28.
Oh good, more income redistribution. Geez it’s coming from both sides now.
Now this would be a sight to behold! Guess if you are going to dream, dream big..
Indeed. As we can see, both sides want socialism.
Coffee prices nearly doubling, isnt that tariff mostly
✅
💯%
Tariff dividend should be a percent of federal income tax paid. Subject to a maximum limit based on middle class cut off point.
You don’t have to take it.
Totally agree with you. There will be plenty of fraud with any give back plans.
Pay down the debt... plus - I really don’t wish to add to my taxable income. Next thing you know I’m paying penalties for not withholding enough and the guvmints suggestion is that I pay quarterly... It’s bad enough with the work that goes into my preps and submission already. Repeating it 4x per year would totally suck.
A straight 15% flat tax would preferable than the burden of paperwork and time I already invest.
Pay down the debt and eliminate federal income tax.
Use the tariff income to shore up SS “trust fund”. Everyone would be for that.
Plus a distribution by the Repubicans will help reinforce the popularity of the Republicans even as it helps the economy.
Here's an economic analysis by chatgpt:
Let’s assume Trump has $1 trillion in excess tariff revenue. He can:
Each of these options has downstream effects on federal and state/local government revenues through income taxes, sales taxes, capital gains taxes, and corporate taxes. Let’s analyze each scenario.
This option doesn't directly stimulate the economy, but it reduces federal interest expenses.
✅ Benefit: Guaranteed, recurring savings
❌ Downside: No direct boost to jobs, GDP, or taxes
Assume people:
Total from Spending:
Federal: $120–130B
State/Local: $65–70B
Total from Saving:
Federal: $0.5B
State/Local: $0.15B
Total from Investing:
Federal: $2.25B
State/Local: $0.75B
| Behavior | Federal Revenue | State/Local Revenue |
|---|---|---|
| Spending ($700B) | ~$125B | ~$65B |
| Saving ($150B) | ~$0.5B | ~$0.15B |
| Investing ($150B) | ~$2.25B | ~$0.75B |
| Total | ~$128B | ~$66B |
If we assume a multiplier of 1.3 on spending, the $700B yields $910B in total GDP. That’s a $210B boost, taxed again:
| Level of Government | Original Revenue | From Multiplier | Total |
|---|---|---|---|
| Federal | $128B | $31.5B | $159.5B |
| State/Local | $66B | $10.5B | $76.5B |
| Scenario | Federal Benefit | State/Local Benefit | Timing |
|---|---|---|---|
| Pay Down Debt | $45B/year (interest savings) | $0 | Ongoing |
| Distribute to Public | $160B (first year) | $76.5B (first year) | Front-loaded |
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