Trump Says Americans Could Get Dividends From Tariff Revenues

Epoch Times ^ | 08/02/2025 | Aldgra Fredly

[SeekAndFind]

I’d rather we pay down the debt as soon as we can.

[Governor Dinwiddie]

Heck, foreign tears and teeth gnashing are reward enough.

[crusty old prospector]

Pay off the debt first.

[boycott]

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.

[Right Brother]

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.

[lurk]

Pay down the debt. Get down to $30T before election ‘28.

[fluffy]

Oh good, more income redistribution. Geez it’s coming from both sides now.

[dpetty121263]

Now this would be a sight to behold! Guess if you are going to dream, dream big..

[Tired of Taxes]

Indeed. As we can see, both sides want socialism.

[George from New England]

Coffee prices nearly doubling, isnt that tariff mostly

[Varsity Flight]

✅

[Bobbyvotes]

💯%

[Bobbyvotes]

Tariff dividend should be a percent of federal income tax paid. Subject to a maximum limit based on middle class cut off point.

[roving]

You don’t have to take it.

[brooklin]

Totally agree with you. There will be plenty of fraud with any give back plans.

[Clutch Martin]

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.

[maddog55]

Pay down the debt and eliminate federal income tax.

[central_va]

Use the tariff income to shore up SS “trust fund”. Everyone would be for that.

[DannyTN]

Distributing it will likely result in more incremental tax revenues that the interest savings from paying down the debt.

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:

What Happens If Trump Distributes $1 Trillion in Tariff Revenue?

Let’s assume Trump has $1 trillion in excess tariff revenue. He can:

1. A) Pay down the national debt
2. B) Distribute it to Americans, who will then either:
   • C) Spend it
   • D) Save it
   • E) Invest it

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.

---

Key Assumptions

• Marginal federal income tax rate: 15–20%
• Average state income tax: 5% (some states = 0%)
• Sales tax: 6–8%
• Multiplier effect: 1.2–1.5x on spending
• Capital gains tax: 15% federal, 5% state
• Corporate tax rate: 21% federal

---

A) Pay Down the National Debt

This option doesn't directly stimulate the economy, but it reduces federal interest expenses.

• Average interest on national debt: ~4.5%
• Annual savings = $1T × 4.5% = $45 billion/year

✅ Benefit: Guaranteed, recurring savings
❌ Downside: No direct boost to jobs, GDP, or taxes

---

B) Distribute $1 Trillion to Americans

Assume people:

• Spend 70% → $700B
• Save 15% → $150B
• Invest 15% → $150B

1. Spending ($700B)

• Corporate profit margin (~10–15%) × 21% corporate tax → $15–25B
• Income taxes on wages (~15%) → $105B
• Sales tax (7%) → $49B
• State income tax (~5% on 50%) → $17.5B

Total from Spending:
Federal: $120–130B
State/Local: $65–70B

2. Saving ($150B)

• 2% average interest = $3B earned
• 15% federal tax on interest → $0.45B
• 5% state tax → $0.15B

Total from Saving:
Federal: $0.5B
State/Local: $0.15B

3. Investing ($150B)

• 10% capital gains = $15B
• 15% federal CGT = $2.25B
• 5% state CGT = $0.75B

Total from Investing:
Federal: $2.25B
State/Local: $0.75B

---

Summary: Direct Distribution Tax Revenue

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

---

Multiplier Effect: +$210B in GDP

If we assume a multiplier of 1.3 on spending, the $700B yields $910B in total GDP. That’s a $210B boost, taxed again:

• 15% federal tax = $31.5B
• 5% state/local tax = $10.5B

Adjusted Totals (with Multiplier)

Level of Government	Original Revenue	From Multiplier	Total
Federal	$128B	$31.5B	$159.5B
State/Local	$66B	$10.5B	$76.5B

---

Final Comparison

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

---

Conclusion

• Debt reduction yields a predictable $45B/year in savings.
• Direct distribution stimulates the economy and could return ~$235B in federal + state/local revenue in year one.
• Future returns depend on investment growth, economic stability, and policy choices.