Trump tariffs could help clear the way for bigger tax cuts as Congress eyes a potential revenue windfall

[TomCADem]

It is amazing how through a combination of racism directed at immigrants and isolationism, Republicans got working class Americans to support what amounts to a huge regressive sales tax through a tariff, which will be used to finance tax cuts to the rich. Heck, even unions like the UAW and Teamsters are jumping on the tariff band wagon even as it drives the US into recession. This is taken straight out of the Herbert Hoover playbook.

https://fortune.com/2025/04/05/trump-tariffs-bigger-tax-cuts-social-security-income-congress-revenue-economy-recession/

But the flip side of the much higher-than-anticipated duties is a potential revenue windfall that could help clear the way for getting bigger tax cuts passed in Congress.

Lawmakers have already taken a key step toward that end. Early Saturday morning, Senate Republicans approved a framework to extend Trump’s tax cuts from his first term, add new cuts like ending taxes on Social Security income, and slash spending.

Some fiscal conservatives in the GOP have balked at the massive deficits and debt more tax cuts could bring. But economists at Citi Research said in a note on Thursday that the aggressive tariffs “may now become a justification for larger tax cuts.”

It’s unclear if tariffs will remain as high as announced (Chinese imports face a 54% levy) or for how long, as Trump has suggested he is open to negotiating rates lower while his authority for imposing them could also face legal challenges.

[dalton99a]

1. Kick

[underpants]

2. I thought one of the purposes for this was to pay for re-upping Trumps tax cut

Guess what MAGA, that doesn’t include you.

[Scrivener7]

3. Wow. That article is just absurd. If they aren't buying our stuff, there isn't a windfall.

And they're already solidifying new trade agreements that don't include us.

These people are just morons.

[TomCADem]

5. Herbert Hoover's Tax Cuts Were Supported By Working Class and Industrialists ...

… seeking protection from foreign competition. Likewise, you have Trump adopting a similar trade policy with a similar base of support.

Conversely, presidents like Obama, Clinton, and FDR are known for rolling back trade barriers.

Yet, somehow protectionist policies have been characterized as progressive. I bet as the economy goes into free falll, Republicans will blame Trump for adopting a progressive trade policy even though history has shown that Republicans have been at the helm for some of the most notorious trade wars.

[C_U_L8R]

4. This administration is on drugs.

Literally.

[ananda]

6. Even the abuse of power is a drug for them.

High on greed and sadism all the time.

[yardwork]

7. Fortune magazine is on drugs.

It isn't going to work out the way they hope.

The markets are tanking and there's going to be a recession. People can't get into their social security accounts and eventually payments are going to get messed up, thanks to Musk's Dunning-Kruger kids.

The DOGE lay-offs have already spiked unemployment. All those laid off workers worked for us, and now they're gone. So the safety net is in tatters.

Millions of Americans are much worse off than we were when Trump took office, and nobody except the billionaires is in the mood to cut even more services. People want their money back.

[Johonny]

8. Great depression