US tariff revenue surged in Fiscal Year (FY) 2025 due to new tariffs, reaching around $195 billion to over $200 billion by year-end (depending on the estimate), a massive jump from FY 2024, with some models projecting new tariffs alone adding over $150 billion in 2025. However, experts note this revenue doesn't cover potential costs from proposed tariff dividends, and it still represents a small fraction of total federal revenue, with some analyses suggesting significant economic trade-offs.
Key Figures & Trends for FY 2025:
Total Collections: Estimates range from approximately $195 billion (end of FY 2025) to over $200 billion through October 2025, covering both new and existing tariffs.
Monthly Growth: Monthly customs duties rose sharply, from $7 billion in January 2025 to $30 billion by September 2025.
New Tariff Impact: Some estimates suggest new tariffs alone could generate over $158 billion in 2025.
Comparison to FY 2024: This represents a significant increase, with some sources showing collections more than 250% higher than the previous year.
Context & Economic Impact:
Economic Costs: Analyses suggest these tariff revenues would not cover the costs of proposed "tariff dividend" plans (rebates to citizens), which could be hundreds of billions, potentially exacerbating budget deficits.
Policy Debates: While figures are high, some politicians claim tariffs could eventually replace income taxes, though experts dispute the math and highlight the significant economic costs.
Highest Rates: By mid-2025, the average effective U.S. tariff rate reached levels not seen since the 1930s.
In Fiscal Year 2024, the U.S. government collected approximately $4.9 trillion in total federal revenue, with individual income taxes ($2.4 trillion) and payroll taxes ($1.7 trillion) being the largest sources, followed by corporate income taxes ($530 billion) and other excise/customs duties. The IRS reported collecting over $5.1 trillion in gross taxes, but this figure includes refunds, leading to the lower net revenue number.
Key Revenue Breakdown (FY 2024)
Total Revenue: ~$4.9 trillion
Individual Income Taxes: ~$2.4 trillion (about half)
Payroll Taxes: ~$1.7 trillion (for Social Security, Medicare)
Corporate Income Taxes: ~$530 billion
Other Taxes: ~$100-200 billion (excise, customs, etc.)
again... your opinion with no factual basis
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Crnr2Crnr ·
