Sen. Ron Johnson rejected President Trump’s proposal to shell out $2,000 “tariff dividend” checks to Americans before the 2026 midterm elections, arguing that money should be used to reduce the federal deficit.
Johnson (R-Wis.) praised the idea during an interview with Fox Business Network’s “Mornings With Maria” Monday, but insisted getting the country’s fiscal house back in order was more important.
“We’re $38 trillion in debt,” he said. “We’ve averaged $1.89 trillion deficits over the last five years. In the next 10 years, the projection’s about $26 trillion from accumulated deficits.”
“We have to address the deficit problem. We are on borrowed time here. So many people are whistling by the graveyard. If we’re bringing in revenue through the tariffs, that oughta be applied to reduce the deficit.”
Trump has repeatedly floated doling out duty refunds to the public. Earlier this month, he proposed a $2,000 check to Americans below a certain income threshold, which Treasury Secretary Scott Bessent suggested would be $100,000 per year for families.
The payments would require approval from the Republican-controlled Congress, with Johnson and other GOPers indicating the proposal is dead on arrival.
“We can’t afford it,” Johnson reiterated Monday. “I wish we were in a position to return the American public their money, but we’re not. Again, we’ll have at least a $2 trillion deficit this year.
“That compares to prior to the pandemic, President Trump had deficits of $800 billion. [Barack] Obama, his last four years, $550 billion a year. Now, we’re $2 trillion? Completely unacceptable. We have to start focusing on that and doing something about it.”
The president’s tariff dividend suggestion came days after Democrats swept off-year election races in New Jersey and Virginia running on a message of affordability.
It also came on the heels of oral arguments before the Supreme Court over Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping “reciprocal” and “trafficking” duties on dozens of nations.
IEEPA tariffs are the cornerstone of Trump’s protectionist agenda, having taken in roughly $90 billion between their implementation and Sept. 23, according to data from US Customs and Border Protection (CBP).
Between Sept. 30, 2024, and Aug. 31, the US has taken in $195.9 billion in levy revenue.
Trump’s $2,000 dividend payments would cost $300 billion if they were limited to individuals earning under $100,000, according to an estimate from Erica York, the Tax Foundation’s vice president of federal tax policy.
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