President Donald Trump recently suggested that revenue from tariffs could be returned to Americans in the form of rebate checks. He floated the idea as a way to give back to "people of a certain income level," noting that the U.S. is generating "so much money" from tariffs.
The concept drew attention, especially as Trump said that tariffs once funded the federal government entirely — before the income tax was permanently established in 1913. Tariffs are taxes placed on imported goods, and while they're paid by importers, the added costs can trickle down to consumers.
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O'Leary Pushes Back: "Pay Down the Debt"
But Kevin O'Leary, investor and chair of O'Leary Ventures, disagrees with using tariff revenue this way. "No. I tell you the idea I like — and I think every taxpayer likes better than this idea — use any excess capital to reduce the national debt," O'Leary told Fox News.
O'Leary emphasized that America's growing debt isn’t just a current burden — it's a long-term risk for future generations. With interest rates elevated, the cost of servicing the national debt increases, and a large portion of that debt is held by foreign entities.
"Let's use any excess cash anywhere to get to that balanced budget and start paying down that debt," O'Leary urged.
A Debate Within the GOP?
O'Leary hinted that discussions about what to do with tariff revenue may be happening behind the scenes within Republican leadership. "Within the administration itself, this is a big debate going on," he said, suggesting there's pressure internally to shift attention toward fiscal responsibility.
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He praised current efforts to lower tax rates and increase U.S. competitiveness but warned that the cost — an estimated $3 trillion addition to the national debt — means America now needs to focus on balancing the budget.
Alternative Ideas for Reducing Debt
In addition to using tariff revenue, O'Leary proposed another strategy: generating income from domestic energy resources. For example, he pointed to the National Petroleum Reserve in Alaska — a large government-owned oil reserve — as a potential source of revenue.
"We could open up the NIR in Alaska and put a tariff on that oil like they do in Norway and just use it all for debt reduction," he suggested.
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How This Could Affect Everyday Americans
O'Leary believes that reducing the national debt is critical for America's long-term financial health. He pointed out that when interest rates rise — or even remain high — the cost of servicing the debt increases. Much of that debt is held by foreign creditors, which he says makes the issue even more pressing.
Whether or not Trump's rebate idea gains traction, O'Leary's response highlights a broader debate about the best use of government revenue. For taxpayers, especially those nearing or in retirement, questions about the national debt are becoming harder to ignore.
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