WSJ Opinion: Potomac Watch Trump’s Affordability Pitch: Tariff Dividends and 50-Year Mortgages?
Nov 11, 2025
Guests Mene Ukwe Barua, an expert in economic and legal analysis, and Alicia Finley, a commentator on housing policy, dive into Trump's recent affordability proposals. They discuss his $2,000 tariff rebates and 50-year mortgages for homebuyers. The conversation examines the feasibility of funding these rebates and the potential economic consequences. They analyze how these proposals could impact inflation, housing demand, and taxpayer risk while questioning their effectiveness as a solution to voters’ financial strains.
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Tariff Revenue Falls Short
- Tariffs have raised some revenue but not enough to fund $2,000 rebates without borrowing.
- Mene Ukwe Barua warns rebates likely cost about twice expected tariff revenue, worsening the deficit.
Mixed Messages To The Supreme Court
- The administration told the Supreme Court tariffs are regulatory, not revenue-raising.
- Kim Strassel notes that claiming both regulatory authority and a revenue windfall undermines the White House case.
Prefer Lower Taxes Over Rebate Schemes
- Avoid treating tariff rebates as a durable solution to affordability because they recycle consumer-paid taxes.
- Mene Ukwe Barua suggests keeping more earnings with consumers rather than rebating a taxed pot.