Overview
- The American Worker Rebate Act would establish a refundable tax credit of at least $600 for each adult and dependent child, with higher payments if tariff collections exceed projections.
- President Trump’s tariffs generated about $27 billion in June and are projected by the Tax Foundation to raise $2.5 trillion over the next decade, providing the funding source for the rebates.
- Rebates would be reduced by 5 percent for joint filers with adjusted gross income above $150,000, heads of household above $112,500 and individuals above $75,000.
- Although the plan has the president’s backing, fiscally conservative Republicans and some House leaders question its impact on the federal budget and inflation.
- With no clear GOP consensus or cosponsors, the bill now awaits Senate Finance Committee consideration and faces an uncertain path to passage.