Fiscal Implications Of Tariffs And Military Spending Increases

The Congressional Budget Office estimates current tariffs will raise $2. 5 trillion in revenue through 2035.

This revenue is expected to generate $3 trillion with interest.

A dynamic basis assessment suggests the revenue may be slightly smaller.

The $175 billion appropriated under the One Big Beautiful Bill Act reduces the need for near-term military spending increases.

Future military spending increases should be fully funded with new revenue or spending cuts.

Relying on existing tariff revenue is not advisable due to its potential volatility.

Tariff revenue would not cover the costs of a large defense spending increase.

A $1. 5 trillion military budget would add $5. 8 trillion to the national debt over a decade.

The national debt is high and rising, necessitating careful budgeting.

The One Big Beautiful Bill Act was passed using the reconciliation process.

The Tax Cuts and Jobs Act's expiration led to significant fiscal policy discussions in 2025.

Enhanced Affordable Care Act subsidies expired on December 31, 2025.

Bipartisan discussions are ongoing for a new package.

The Congressional Budget Office recently estimated current tariffs would raise $2.5 trillion of additional revenue through 2035, or $3 trillion with...

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