"A new report from the Tax Foundation, a nonpartisan think tank, found that the average tariff burden for U.S. households was $1,000 in 2025 and is expected to grow to $1,300 this year, effectively cancelling out any benefit from the tax cut and falling short of paying for them. Tariffs will raise a net $1.9 trillion between 2025 and 2034, the Tax Foundation estimates, but the cuts will reduce revenue by $4.1 trillion."
""Tariffs are really holding back the potential of the new tax law, both to deliver relief to taxpayers and to grow the economy," Erica York, vice president of federal tax policy at the Tax Foundation, told Fortune. "The negative impact on investment and on work from the tariffs will really undercut some of the provisions in the new tax law that were designed to boost the economy.""
Tariffs impose an average burden of about $1,000 per U.S. household in 2025 and are expected to rise to $1,300, effectively canceling out average tax-cut refunds. The tax cut reduces individual taxes by $129 billion and could direct up to $100 billion toward refunds, increasing average returns by up to $1,000. Tariffs are projected to raise a net $1.9 trillion between 2025 and 2034, while the tax cuts reduce revenue by $4.1 trillion. Tariffs depress investment, hiring, and wage growth, shifting costs onto consumers through lower income growth and undermining the tax law’s potential economic benefits.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]