Kevin O’Leary Critiques Proposed Rebate Checks Funded by Tariffs
Kevin O’Leary, known from “Shark Tank,” expressed reservations on Monday regarding the idea of providing rebate checks to Americans funded by tariffs. This concept was initially suggested by President Donald Trump on July 25 and further introduced by Republican Senator Josh Hawley from Missouri.
During an appearance on “CNN News Central,” O’Leary argued that instead of issuing checks, the government should focus on addressing its debt. He remarked, “We’ve overstimulated through the pandemic five years ago, so we’re spending a lot of money that we don’t need. It’s time to settle down and start paying off our debts,” emphasizing his disapproval of the proposal.
O’Leary also noted the importance of maintaining investor confidence in America, expressing concern about the potential for hyperinflation and rising long bond rates. He seems to believe that robust investment is crucial, and any financial remedies need to be more considered than simply sending out money.
In a related note, the U.S. government recorded a $27 billion budget surplus in June, which was partly attributed to record tariff revenues. Some reports indicated that tariff collections for the fiscal year were nearing $100 billion for the first time.
When asked about the potential for income-based rebates on July 25, Trump acknowledged that while his administration is focused on debt repayment, small rebates for certain Americans might be feasible. He mentioned, “We’re actually thinking about it. There’s a lot of money coming in,” underscoring that tariff revenue could allow for some relief.
However, perspectives on the proposed rebate vary. The Congressional Budget Office (CBO) estimated that related legislation could add $3.3 trillion to the deficit over ten years, while the President’s Council of Economic Advisors (CEA) predicted a reduction in the deficit by $4.5 trillion. Additionally, Treasury Secretary Scott Bescent forecasted tariff revenue could soar to $300 billion by the end of 2025.
As a backdrop to these discussions, the national debt of American citizens currently exceeds $37.2 trillion.
