There is no day when President Donald Trump does not proudly say – he has been collecting record amounts of revenue since the tariff on almost all types of imported products.
A lot of money is coming – so much money has never come before in the history of the country, Donald Trump made this comment on the revenue of customs on Friday.
CNN news reports that Donald Trump is not wrong. According to the US finance department, the US government raised about $ 30 billion or $ 3 billion in customs revenue last July; Which is 242 percent higher than in July last year.
Donald Trump imposed a 10 percent tariff on almost all types of products in April. As well as some higher tariffs in the next months. The reality is that the government has raised a total of $ 100 billion or $ 10 billion in customs revenue from July to July – three times higher than the same period last year. The question is – where is the government spending this huge money?
Donald Trump speaks of two possibilities. First, the government’s tariff rebate check or check-up check (delivery of customs revenue directly to the people) is to repay the government’s loan of millions of dollars.
Last Tuesday, Donald Trump said the main purpose of what he was doing was to repay the loan; It will be quite large in the direction of the figure. But he thinks that so much money is coming that people may be given dividends.
But so far neither of the two has happened. Many Americans may think that the money that is mainly exiting the pockets of US business companies by handling the first push of importing foreign products, may be just dusting on the revenue of hundreds of billions.
The revenue that the government collects – whether it is from general taxes or tariffs – is all deposited in the US finance department -controlled general fund. They call this fund the ‘American checkbook’, because the government’s expenses are paid from there, such as paying taxes.
When the amount of revenue is lower than the government’s cost, that is, the budget the government then fills the deficit by borrowing. The total loan amount on the current government is more than 36 trillion or more than 36 million dollars. This loan is constantly increasing. Many economists warn that the debt burden is slowing down economic growth.
The way an ordinary American gives interest to the loan, the government also has to pay interest on the loan. The more loans, the more interest. As a result, the money is stressed according to the development of highways or spending on the welfare of the people.
The current fiscal year is not enough to meet the US government’s 1.3 trillion or 1 lakh 3p billion dollars budget deficit. However, it is also true that due to the money received on the tariff, the deficit figure has decreased somewhat. That is, if there was no customs revenue, the government would not have to take as much borrowing.
Deutsche Bank’s senior US economist Brett Ryan said the money has the opportunity to use better, not so. According to Ernie Tedeschi, director of Budget Lab Yale and former economist of the Biden White House, if Congress returns the customs revenue ‘rebate check’ to the people, then the deficit will increase.
Republican Senator Josh Hawley presented the bill last week. He said it is not a policy to follow now, but it is a risk of increasing inflation. The White House did not answer CNN’s question.
Although the government’s financial situation improves for the welfare of the customs revenue on paper, its impact is not always good. Most business organizations are still paying extra costs, not raising prices. It does not apply to all businesses. Due to the increase in tariffs, the prices of household appliances, toys, and consumer electronics are rising. This was seen in a recent US government report on inflation. Many organizations, such as Walmart and Procter & Gamble, have warned of further price increases.
Due to duty uncertainty, many organizations have postponed the appointment of new workers. As a result, many economic surveys are indicating that job opportunities are decreasing.
Analysts think, ‘The tariff will have a negative impact on the US economy. This year and next year, the United States’ gross domestic product (GDP) growth will be reduced by half a percent of the tariff of Trump.
It will lose a portion of the customs revenue; Because, if growth is at a lower pace than expected, then the money received from income tax and pay tax will be reduced even if the tariff is revenue.
Donald Trump and his administration are looking at the matter differently. Their the US economy will become stronger by combining tariff revenue with the newly implemented huge tax concession and expenditure bills. It will be in the course of time.
