The government announced $166 billion in refunds to corporations for tariffs paid last year. There seems to be little hope any of that money will be returned to consumers, who had those tariffs passed onto them as higher prices. There are an estimated 133 million U.S. households so, on average, the tariffs cost each household $1,248 last year.
If you are pleased with the tax refund you received this year, you need to deduct the additional taxes you paid for tariffs.
Obviously these are averages and individual circumstances will determine whether you benefited or lost under President Donald Trump’s reconciliation bill. On a policy level, this is clear evidence that Mr. Trump reduced income taxes while increasing taxes through tariffs at the same time.
Corporations, however, got reduced income taxes with no extra taxes for tariffs. It’s all benefit for them and little for average Americans. It’s simple math.
