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Congressional Budget Office Report August 22, 2025

"We project that increases in tariffs implemented during the period from January 6, 2025, to August 19, 2025 will decrease primary deficits (which exclude net outlays for interest) by $3.3 trillion if the higher tariffs persist for the 2025‒2035 period," Phillip Swagel, CBO’s director wrote."By reducing the need for federal borrowing, those tariff collections will also reduce federal outlays for interest by an additional $0.7 trillion. As a result, the changes in tariffs will reduce total deficits by $4.0 trillion altogether."

Uh oh dems are now even further stumped and without the ability to create their own plan 🤪😛😜

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fun4us2b · M
Tariffs are paid by consumers, so yes this is similar to a consumption tax.
trollslayer · 46-50, M
@fun4us2b this. The Democrat (and non-maga classic GOP) aren’t saying that tariffs won’t reduce deficits. They are saying that will happen at the expense of consumers (you and I).
To what the CBO is saying. Only the lying dems are saying this and they know they are wrong and so do you two



@fun4us2b @trollslayer
samueltyler2 · 80-89, M
@jackjjackson who pays the tariffs?
Read the CBO report. @samueltyler2
samueltyler2 · 80-89, M
@jackjjackson I have, and i can't really find a definitive statement, but we all know that increasing taxes increases government revenue.

We can all cherry pick parts of the message that supports ur theories, how about this:

"What Additional Effects Will Be Reflected in CBO's Next Economic Forecast?
The short-term economic forecast we are publishing next month will reflect the effects of increases in tariffs on U.S. imports implemented between January 6 and August 19. The forecast will also reflect the effects of changes in tariffs on U.S. exports made by other countries.

We estimate that the changes in tariffs, both by the United States and its trading partners, will reduce the size of the U.S. economy. That reduction in output reflects both negative and positive effects: the negative effects of higher tariffs through channels such as reduced investment and productivity, and the positive effects of additional revenues from tariffs on U.S. imports, which would reduce federal borrowing and increase the funds available for private investment.

The increases in tariffs will make consumer goods and capital goods (the physical assets that businesses use to produce goods and services) more expensive, which will reduce the purchasing power of U.S. consumers and businesses. Those increases in costs will put temporary upward pressure on inflation. (emphasis mine)

Our short-term economic forecast will also reflect the interactions between the changes in tariffs and other changes, including those stemming from provisions of the 2025 reconciliation act. Then, our next 10-year economic forecast and budget baseline will fully reflect the economic and budgetary effects of changes implemented through legislative and administrative actions.
“We all know”


“ emphasis mine”


@samueltyler2
fun4us2b · M
@jackjjackson I don't debate the deficit reduction. My take on this is that tariffs are paid by importers of goods who then have to raise prices, which ultimately passes on the consumer. That being said, it translates to a sort of tax on consumption. So the deficit is being paid down by US taxpayers, as usual. The report is good, and reading the last sentence, Swagel basically says this has never been tried before.
samueltyler2 · 80-89, M
@fun4us2b its effects, the tariffs aka taxes, are disproportionally greater on those with lower incomes, so combined with the tax breaks on the wealthy it is a reverse Robin Hood project.
fun4us2b · M
@samueltyler2 Mainly because they are barely making it as it is...a fat cat tax (maybe a baby 1/2 percent?) would work wonders reducing the deficit too....where is it?
samueltyler2 · 80-89, M
@fun4us2b we will never convince MAGA followers!
fun4us2b · M
@samueltyler2 We won't - historically, people vote with their pocketbooks, so if prices become inflated and it's proven caused by tariffs, the tide would turn rapidly.
samueltyler2 · 80-89, M
@fun4us2b we know it is tariffs, but the gaslighting of the citizens has been incredibly effective! Have you heard MAGA say gas prices are done, grocery prices are down, etc? How about crime statistics, etc?
fun4us2b · M
@samueltyler2 Radicals always get the microphone...that said, the Democrats have no game plan which is concerning and leaves too much room for this to run. Pardoning criminals and placing the military in cities - who is cool with that?
samueltyler2 · 80-89, M
@fun4us2b that is how Germany moved in the early 1930s.
Oh place ….. @samueltyler2