00:00 Speaker A
So, between this the new tax rules and a potential tariff rebate next year, that’s being talked about a lot. Will the will those two elements, so to speak, be enough to offset higher costs for households next year? The tariff a tariff rebate and the tax savings.
00:16 Speaker B
So, I think a tariff rebate is not really on the table. Um the President and his administration have spoken a lot about this, but to actually, you know, implement a new rebate policy to send checks out to people would require an act of Congress and I don’t think that’s high on the priority list for Congress. Uh people will benefit from the tax cuts that Congress passed last year. Both when they go to file their taxes, um in the upcoming filing season and get larger refunds. and then going forward, um the Treasury department will adjust withholding tables so that lower taxes are withheld from each paycheck. so a little bit higher take-home pay with each paycheck. and people will notice that. Depending on a person’s situation, that will that will really determine whether their tax cut outweighs their tariff burden. Uh but the tax cuts in aggregate do add up to a lot larger revenue impact than the tariff hikes have. So, it makes sense for most people that they’ll they’ll come out ahead when you weigh the combination of tax cuts and tariffs. But I think an important caveat to that is that for the most part, the tax cuts are continuing status quo. Um like I mentioned up at the top, uh a lot of what Congress did was extend expiring tax provisions. So from a personal standpoint, you know, if your tax bracket remains the same year-to-year, if your standard deduction is close to the same with a small boost, you’re not going to feel much different, but you will notice the tariffs. So from a sentiment standpoint, people may feel worse off even though from a budgetary scoring standpoint, um it looks like large tax cuts.