Tariffs and tax breaks.
Bessent told reporters Tuesday at a White House press briefing there is “a very good chance” impending tax legislation will reflect “the ability of tariff revenue to give income tax relief.” The bill should also reflect Trump’s campaign promises of “no tax on tips, no tax on Social Security,” and “no tax on overtime.”
Tariff income, Bessent reiterated, “could be used for all those, immediately.” He explained the administration’s approach is based around both long-term tariff revenues and tariffs that could be wound back as part of “trade deal” discussions. This will help boost U.S.-based manufacturing and create jobs, said the Treasury secretary. The “aperture of uncertainty” around tariffs on other countries will be “narrowing” in the near future “as we start announcing deals,” according to Bessent.
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