Are Tariffs Becoming America’s New Income Tax?

August 4, 2025  | Season 7 | Episode 30The financial landscape shifted dramatically last week as markets processed a surprisingly weak jobs report amidst record highs for major indices. Friday's employment data revealed not just lower-than-expected job growth but massive downward revisions to previous months, sending markets tumbling despite stellar earnings from tech giants. This unexpected weakness has resurrected concerns about stagflation – that dreaded combination of sluggish growth and persistent inflation.President Trump's tariff policies are reshaping America's revenue structure in ways reminiscent of the 19th century. Currently generating around $30 billion monthly – triple the pre-Liberation Day figures – these tariffs could offset roughly two-thirds of recent tax cuts over the next decade. This structural change creates an interesting political dynamic where future administrations may find abandoning tariffs politically difficult, regardless of ideology.Meanwhile, Silicon Valley's power balance faces potential disruption as Meta's Mark Zuckerberg declares subtle war against Apple's dominance. His vision of AI-powered smart glasses could eventually replace smartphones as our primary computing interface – seeing what we see, hearing what we hear, and creating seamless digital interactions throughout our day. With engineers receiving compensation packages up to $100 million, Meta is positioning itself to lead this potential post-smartphone revolution.The Federal Reserve itself stands at a crossroads, with President Trump poised to significantly reshape the institution. Beyond simply pushing for lower rates, potential changes include reexamining the Fed's fundamental mission, altering its approach to inflation, reducing staff numbers, and potentially reorganizing the entire Federal Reserve system. These structural changes could introduce new market volatility as investors adjust to a different monetary policy framework.For retirement planners, healthcare costs remain a critical challenge often underestimated in financial preparations. A 65-year-old today can expect to spend approximately $173,000 on healthcare throughout retirement – excluding long-term care expenses. With traditional pensions becoming rare, annuities are emerging as potential solutions for creating guaranteed income streams, particularly as higher interest rates make their payouts more attractive than they've been in years.Start Your Wealth Conversation Today!** For informational and educational purposes only, not intended as investment advice. Views and opinions are subject to change without notice. For full disclosures, ADVs, and CRS Forms, please visit https://heroldlantern.com/disclosure **To learn about becoming a Herold & Lantern Investments valued client, please visit https://heroldlantern.com/wealth-advisory-contact-formFollow and Like Us on Youtube, Facebook, Twitter, and LinkedIn | @HeroldLantern

There are no comments yet.

Please log in to write the first comment.