Scott Lincicome: Why the Tariff Dividend Doesn’t Add Up

In light of recent news on potential tariff dividends, Scott Lincicome, Vice President of General Economics at the Cato Institute, argues that the “tariff dividend” proposal fails on mathematical, economic, and legal grounds. Mathematically, tariffs generate about $30B a month, far short of the $600B in proposed rebates. Economically, the revenue is already spent, making the plan an inefficient way of giving people their own money back while adding inflationary pressure. Legally, tariff revenue goes to the general fund, the president can’t issue rebate checks, and Congress would be required. The proposal also underscores that Americans, not foreign governments, pay the tariffs. Lincicome argues the simplest solution is to cut the tariffs entirely.