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💵 Today’s Top Stories

💵 Can Newfound Tariff Revenues Help Pay Federal Debt?

You’re aware of the unfathomable debt the United States owes: $758 gazillion. (OK, the real number is more than $37 trillion, but there are too many zeros to comprehend the size.)

No matter the president, and no matter the political party in charge, that number keeps getting bigger and bigger and bigger. Credit agencies have even taken to very slight downgrades of the U.S. credit rating.

Looming on the horizon, fully-funded Social Security benefits reportedly are on pace to run out after 2032 as our interest payments continue to balloon. (Here’s Clark’s view on the sustainability of Social Security benefits.)

We’ve got a newfound source of income, though, in tariff revenues. We brought in a record $27.7 billion in July according to one source, a number that continues to climb. But is that enough to put any significant dent in our budget deficit and debt?

U.S. Treasury Secretary Scott Bessent says our tariff revenues for 2025 should be “substantially” higher than $300 billion.

After some rumors of a potential dividend to the American people, Bessent also says the first priority is to use the new revenue to pay down the debt.

Clark has long anticipated that an increase in taxes will occur in the long term. Clark thinks it’s a near-certainty that taxes will rise in the future as a key component to trying to keep Social Security and Medicare benefits going and to address the debt and budget deficit.

It’s one of the reasons he loves paying up-front taxes for Roth 401(k) and IRA retirement plans rather than paying them in retirement when you withdraw from traditional versions.

The federal budget deficit has risen $109 billion from last year and reached $1.6 trillion through 10 months of the fiscal year. So additional revenue from tariffs, put toward the debt, is better than $0. But for the moment, it seems unlikely it will serve as a game-changer.

📊 Stat of the Day

💰️ Deal Alert: Today’s Top Deals

🎙️ Podcast

The latest job numbers are in, and the US job market is officially frozen. So what does this mean for you? Clark dives into the surprising reasons behind the slowdown, why America's biggest cities aren't the best places to find a job right now, and what you should be doing instead. Also, there’s a major change to 529 plans. Learn how you can now use these plans for more than just college and a new way to use your 529 plan to supercharge your child's retirement savings, all tax-free!

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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