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Trump Bill, Tariffs Could Deal a Double Blow to Tax-Cutting States Like Iowa

Last month, the House approved the One Big Beautiful Bill, a tax and spending plan currently being reviewed by the Senate, which is projected to add $2.4 trillion to federal budget shortfalls throughout the next ten years.
The bill aims to prevent the expiration of Trump tax cuts next year, which tax experts like Mike Palicz say would cause the largest tax increase in U.S. history if allowed to lapse.
At the same time, Trump announced tariffs through May 13 expected to reduce deficits by $2.5 trillion, but their legal challenges and shifting application make these revenue gains highly uncertain.
Economists warn that tariffs act as regressive taxes hitting low-income households hardest, with the poorest fifth potentially losing $820 next year according to the Penn Wharton Budget Model.
Together, the bill's expanded SALT deductions help high-tax states while tariffs risk economic damage, potentially offsetting tax reform gains and delivering a double blow to states reliant on tax cutting and exports like Iowa.

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Des Moines Register

Center

Trump bill, tariffs could deal a double blow to tax-cutting states like Iowa

The president's stance on the SALT cap would reward high-tax areas at the expense of Iowa and other states that lowered rates, writes Jared Walczak.

6 days ago·Des Moines, United States

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The Globe & Mail

Center

Tariff revenues could pay for Trump’s tax cuts, but it likely wouldn’t be much of a bargain

The administration’s tax and spending bill, under consideration in the Senate, would increase federal budget deficits by $2.4-trillion over the next decade

7 days ago·Canada

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