Latest news with #rebate
Gizmodo
11 hours ago
- Business
- Gizmodo
Josh Hawley Says Trump Tariff Rebate Checks Won't Go to ‘Biden Voters'
Sen. Josh Hawley (R-Missouri) recently introduced legislation that he claims is designed to allow Americans to 'benefit' from Trump's tariff scheme. Now, he's giving everyone good reason to believe that his ploy to send rebate checks at a time of rising inflation is just a political stunt. The administration's tariffs are unprecedented in modern economic history and are currently generating revenue for the U.S. government by taxing U.S. businesses on their imports. Critics have noted that the administration is just asking many companies to pass along the higher cost of doing business to consumers. No matter what Trump says, there's just no avoiding the fact that tariffs will drive up the cost of electronics, including video games, laptops, graphics cards, cars, smartphones, and practically every other imported good. To allow everyday people to 'benefit' from this bizarre system, Hawley has proposed sending a $600 rebate to Americans, in a fashion somewhat similar to the Covid-era stimulus checks that came with the CARES Act. Hawley previously said that his legislation 'would allow hard-working Americans to benefit from the wealth that Trump's tariffs are returning to this country.' However, it would appear that he was only talking about hard-working Americans who agree with Donald Trump. In an interview with Trump acolyte Steve Bannon, Hawley claimed that his legislation was only designed to send money to people of a particular economic and political persuasion. 'Well, you wouldn't give it to everybody, you'd give it to the working people,' the Senator told Bannon on Tuesday. 'You'd give it to our people.' Who counts as 'our people'? From Hawley's comments, it doesn't exactly sound like a representative sample of the country. 'I mean, you know, the rich people don't need it … what I mean by that is all those Democrat donors of Wall Street, all these hedge fund guys, who all hate the tariffs, by the way,' Hawley said. 'My view is, we ought to give a portion [of] that back to our working-class blue-collar voters who powered the Trump revolution, who got this president into office multiple times, and who are the backbone of this nation.' During his conversation with Bannon, Hawley provided other vague details about his supposed plan. 'It'd be $600 for every adult and child, so if you've got a big family, you're gonna get more,' he claimed. 'And you'd phase it out for income, you know? So again, the wealthy—you start making six figures, you get into the big six figures—you'd phase the thing out.' He continued: 'So this is not going to the hedge fund managers or all the Biden voters. This is not going to the Wall Street kingpins. So they don't need any of it.' It's worth noting that some 81 million people voted for Biden during the 2020 presidential election. Nearly 75 million voted for Kamala Harris last year. The number of people who make six-figures in this country is significantly smaller, but still represents a significant chunk of the population pie. In other words, it sounds like the target demographic for Hawley's rebate program is actually quite small, and would mostly be: MAGA. Surprise, surprise. Of course, it seems more than likely that the rebates won't ever materialize, which means that nobody is going to be getting any money and Hawley is just engaging in a bit of theater to seem like he's doing something to alleviate the harms of rising prices. If that's the case, it's just one more example of the MAGA brand of faux-populism—a largely rhetorical program in which economic elites lambaste their own class while sucking up to the poor. Meanwhile, Washington continues with business as usual, the rich get richer, and we're all just a little bit more confused by what our leaders are doing.
The Independent
a day ago
- Business
- The Independent
Sen. Josh Hawley wants to exclude ‘Biden voters' from $600 Trump tariff rebate checks
Senator Josh Hawley says the legislation he proposes will send $600 tariff rebate checks to Americans, but not to 'Biden voters,' only to 'Trump blue-collar voters.' 'Well, you wouldn't give it to everybody, you'd give it to the working people,' the Missouri Republican told far-right podcaster and former Trump adviser Steve Bannon on Tuesday. 'You'd give it to our people.' 'I mean, you know, the rich people don't need it … what I mean by that is all those Democrat donors of Wall Street, all these hedge fund guys, who all hate the tariffs, by the way.' The senator introduced the American Worker Rebate Act of 2025 on July 28. It proposes refundable tax credits of at least $600 per adult and dependent child, funded by tariff revenues, with a phase-out for incomes exceeding $75,000 for singles and $150,000 for joint filers. Checks could exceed that if revenues are higher. He said on Bannon's War Room podcast, 'We're on track to raise over $150 billion from tariff revenues this year alone, this calendar year alone.' 'My view is, we ought to give a portion [of] that back to our working-class blue-collar voters who powered the Trump revolution, who got this president into office multiple times, and who are the backbone of this nation.' Tariffs are imposed on imports by U.S. companies, which then pass much of the increased costs on to American consumers through higher prices on goods. Any rebate check would likely be swallowed up by those price increases. In the first half of the year, companies rushed to stock up on goods and inputs from overseas in preparation for the impending imposition of tariffs. This has so far prevented large price hikes, but those inventories will begin to dwindle, and soon the cost of goods is expected to start creeping up. 'Biden has crushed these people,' Hawley claimed, turning his ire toward the previous administration. 'What a legacy for Donald Trump to say, 'I'm gonna take a portion of this massive money' that he's raising on these tariffs, and return it to the people who run this country and are gonna build our future.' Hawley's plan, like the pandemic stimulus checks of the first Trump administration, has strict caps on who is eligible for a rebate payment. 'It'd be $600 for every adult and child, so if you've got a big family, you're gonna get more,' he said. 'And you'd phase it out for income, you know? So again, the wealthy — you start making six figures, you get into the big six figures — you'd phase the thing out.' 'So this is not going to the hedge fund managers or all the Biden voters. This is not going to the Wall Street kingpins. So they don't need any of it,' Hawley continued. Hawley failed to note that President Joe Biden was not on the ballot in the 2024 election. He was replaced on the Democratic Party ticket by Vice President Kamala Harris. Continuing to rail against the previous administration, he said: 'This is going to the Trump blue collar voters, the people who Joe Biden crushed, the people who didn't get a raise under Joe Biden for four long years, the people who cannot afford their gas, because Joe Biden shut down our energy, who can't afford their groceries, because Joe Biden drove up the price of everything.' He added: 'And it is a message from us to them, from Trump to these folks that he is here to deliver for them.' The Tax Foundation reported on Monday that Trump's tariffs will raise the costs of food for Americans in addition to the more widely covered impact on the cost of manufactured goods. In 2024, the US imported approximately $221 billion in food products, 74 percent of which ($163 billion) would be subject to the Trump tariffs. Some popular food products, such as bananas and coffee, are almost entirely imported. Critics of the plan to issue $600 rebate checks to Americans argue that the money should instead be used to pay down the national debt, which has increased by another $3.4 trillion thanks to Trump's 'Great, Big, Beautiful Bill,' according to the Congressional Budget Office. Others note that this is a repeat of the Covid-19 pandemic recovery stimulus measures implemented by both the first Trump administration and the Biden administration, which sent out direct checks to individuals. In both instances, there were complaints that the relief provided by the money was short-lived, and Republicans criticized President Biden's $1.9 trillion economic stimulus package, 'The American Rescue Plan,' specifically for stoking rapid inflation. Concerning the Hawley plan, its similarities to earlier initiatives and the inflationary pressure they fueled, opinion writer Josh Barro quipped on X: 'The stimulus will continue until inflation improves.' The U.S. economy experienced a surprising three percent expansion between April and June, offering a temporary rebound from a first-quarter downturn linked to disruptions from Trump's trade disputes. Yet, despite this growth, the report's underlying data suggests a continued apprehension among American consumers and businesses. This caution is rooted in the economic uncertainty created by Trump's tariff plans.
Forbes
3 days ago
- Automotive
- Forbes
Should You Buy A New EV Before The $7,500 Tax Credit Expires?
NEW YORK: A new Lexus electric car is displayed at the New York International Auto Show (Photo by ... More) In 2009, the American Recovery and Reinvestment Act offered the first federal rebates and tax credits for electric vehicles (EVs) in the United States. The credits were reinstated in 2022, under the Inflation Reduction Act, and written to last until 2032. The current administration had other plans, and lawmakers recently passed a new tax and budget bill (nicknamed the "One Big Beautiful Bill") to reset the EV rebates and tax credit expiration date to September 30, 2025—that's right around the corner. While there are no plans to offer a federal tax credit for new or used EV purchases after that date, some state and local governments may offer similar programs. Still, none are as comprehensive as the rebates and tax credits that are set to expire in just over 60 days. This creates quite a dilemma for consumers considering a new or used EV. Should they accelerate their purchase to take advantage of the rebates and credits, or wait and see what the future holds? Sound advice suggests that if you currently have plans to buy or lease an EV before year's end, it makes sense to accelerate the transaction and complete it before September 30, 2025. If you are only casually considering an EV—primarily enticed by the $7,500 (new) or $4,000 (used) incentives—it's better to wait until next year. Today, the average new EV costs about $9,000 more than a comparable gasoline vehicle, and used EVs are still about $2,000 more than an equivalent used gasoline vehicle. Until now, automakers have relied heavily on rebates and tax credits to boost sales. They have successfully advertised the discounts in their marketing efforts. Once the credit is gone in October, demand for EVs is expected to slow significantly. Manufacturers are not obligated to lower prices—most won't be able to discount existing inventory, and consumers will be forced to pay the higher prices (some shoppers will pay more willingly, noting that EVs cost significantly less to own over the long run, thanks to lower charging costs and reduced maintenance). Over time, most manufacturers will eventually lower prices, offer increased dealer incentives (savings passed on to shoppers), or complement sales with attractive financing and low interest rates—all of this is dependent on market conditions, consumer demand, wholesale battery prices (during manufacturing), and the competitive environment. And they will likely shift marketing campaigns to stress the advantages of EV ownership (zero fuel costs, lower maintenance, and the convenience of home chargers). In summary, if you are currently in the market for a new or used EV, it's wise to complete the purchase before September 30, 2025. Keep in mind that the rules have changed—not all EVs and buyers qualify for today's credits. Under the new legislation, there are very specific rules regarding North American assembly, battery sourcing, vehicle pricing caps ($80,000 for SUVs, pickups, and vans; $55,000 for other vehicles), and buyer income levels (consult with your tax professional to determine eligibility).
Forbes
3 days ago
- Business
- Forbes
Will There Be $600 Tariff Rebate Checks? New Bill Comes After Trump Expressed Interest
Legislation introduced Monday by Sen. Josh Hawley, R-Mo., would provide tariff rebate checks of at least $600 to American families, after President Donald Trump signaled his administration would 'consider' sending checks based on the billions his tariffs have collected, though the payout program would likely lead to increased inflation. President Donald Trump signaled his administration would 'consider' sending Americans rebate checks ... More from the billions in revenue his tariffs have raised. Copyright 2025 The Associated Press. All rights reserved Hawley's bill proposes establishing a refundable tax credit for Americans using tariff revenue, which would send at least $600 to each eligible adult and dependent child this year, pending approval from Congress and Trump. Trump last week said his administration was 'thinking about a little rebate' from tariff revenue that would impact 'people of a certain income level,' though he did not provide additional details. A larger rebate check would be issued if tariff revenue exceeds projections, according to the bill, which reduces the rebate by 5%—lowering the $600 sum to about $570—for joint filers with an adjusted gross income above $150,000, a head of household with an income of over $112,500 or an individual whose income exceeds $75,000. Hawley said in a statement his bill would 'allow hard-working Americans to benefit from the wealth' collected by Trump's tariffs. It's likely the tariff rebate checks, amounting to payouts to millions of U.S. citizens, would lead to higher inflation. COVID-19 stimulus checks approved by Trump and then-President Joe Biden in 2020 and 2021, respectively, injected about $814 billion into the economy, contributing to inflation reaching a 41-year high of more than 9% by June 2022. The stimulus programs accounted for about a third of inflation that year, according to the Federal Reserve Bank of St. Louis. How Much Will Trump's Tariffs Collect In Revenue? Trump's wide-reaching levies on U.S. trade partners are projected to raise about $2.5 trillion over the next decade, according to the Tax Foundation, which noted the tariffs will raise the price of common goods and taxes for the average household by nearly $1,300 in 2025 and about $1,700 in 2026. Treasury Secretary Scott Bessent told Fox Business last week the U.S. has collected $100 billion in tariff revenue since Trump implemented his levies and projected revenue would reach $300 billion per year. Revenue from tariffs totaled roughly $27 billion in June, an increase of $4 billion from May, according to the Treasury Department. Trump announced last month an investment account with $1,000 in funds for children born in the U.S. between Jan. 1, 2025 and Jan. 1, 2029, with all newborn children automatically enrolled in the program. Parents or account custodians could place up to an additional $5,000 in post-tax contributions annually into the account, which would invest in index funds. Some tax analysts argued the accounts are too restricted because they are tied to stock funds and not less risky options like bonds or cash. The accounts were approved under Trump's 'Big Beautiful Bill' earlier this month. Tangent Trump announced last month an investment account with $1,000 in funds for children born in the U.S. between Jan. 1, 2025 and Jan. 1, 2029, with all newborn children automatically enrolled in the program. Parents or account custodians could place up to an additional $5,000 in post-tax contributions annually into the account, which would invest in index funds. Some tax analysts argued the accounts are too restricted because they are tied to stock funds and not less risky options like bonds or cash. The accounts were approved under Trump's 'Big Beautiful Bill' earlier this month. Further Reading Forbes Here's Everything We Know About DOGE Dividend Checks—And How They Could Contribute To Inflation By Derek Saul
CBS News
6 days ago
- Business
- CBS News
Trump says he's considering rebate checks for Americans based on tariff revenue
President Trump on Friday said he's considering issuing rebate checks for Americans based on the billions in new tariff revenue collected by his administration. "We're thinking about a little rebate. But the big thing we want to do is pay down debt. But we're thinking about a rebate," Mr. Trump said in comments to reporters before he left for a four-day visit to Scotland. Federal debt, which currently stands at more than $36 billion, is projected to rise due to the new tax cuts and spending bill signed into law by Mr. Trump on July 4, according to forecasts from economists and public policy think tanks. The nation's deficit could rise by $3.4 trillion over the next 10 years because of the impact of the One Big Beautiful Bill Act, the Bipartisan Policy Center said, citing estimates from the nonpartisan Congressional Budget Office and the Joint Committee on Taxation. Mr. Trump added that the rebate could be "for people of a certain income level," although he didn't specify the threshold that he's considering. The federal government has collected about $100 billion in tariff revenue since the Trump administration instituted its higher import duties earlier this year, which could increase to $300 billion per year, Treasury Secretary Scott Bessent told Fox Business' "Mornings with Maria" on Tuesday. Tariffs vary from country to country, but they're paid by U.S. importers, such as Walmart, or manufacturers that import materials and components from other countries, like Ford Motor. So far, some companies have been swallowing the higher costs rather than passing them on to consumers, although the latest inflation report signaled that higher tariff rates may be edging into consumer prices. Rebate checks have been floated by Mr. Trump previously, with the president saying in February he was considering using 20% of the savings from Elon Musk's cost-cutting task force, the Department of Government Efficiency, or DOGE, to provide direct payments to taxpayers. During the pandemic, taxpayers received three rebate checks — two under the first Trump administration, and the third under the Biden administration — aimed at offsetting the economic impact of the crisis. Typically, such rebates are issued through the tax code, which would require Congress to pass new tax legislation authorizing the Treasury Department to issue checks. Lawmakers earlier this month passed a massive tax and spending bill that was signed into law by Mr. Trump on July 4, which authorizes some new tax breaks, but doesn't include a rebate based on tariffs. Some of the bill's new tax cuts are limited to low- and middle-income taxpayers. For instance, its new $6,000 deduction for senior citizens phases out for single taxpayers with incomes over $75,000 and married filers with earnings over $150,000.
