Let's say good morning now to the host of How to Money on KFI, Joel Larsguard. Joel, Liberation Day is tomorrow. What is that going to mean? Oh?
Yeah, that's like what everyone's that's the question on everyone's
mind because we don't really know. The Liberation Day talk has been kind of sort of specific but also intentionally vague, and so I guess, like the great unveiling will come tomorrow and we'll find out what that we're talking about, but certainly it's going to mean increased tariffs on other countries who the President feel that the President feels like we don't have a reasonable trading balance with and so I think what that means for consumers at the end
of the day is higher prices on certain goods, and it means right now a lot of uncertainty for businesses. And so it's been I would say it's been a tough start to the year economically and on the macro perspective, just because of the severe uncertainty and the fact that businesses are just like, where's this going and theack of clarity, which maybe we'll get more tomorrow has been one of the toughest things. The tariff part is tough, but the uncertainty part is tougher.
Okay, So then and I guess these are questions that we won't know because you just said we kind of don't know until we know, But you know, like, are they going to start passing those increases along immediately? Is there going to be some lag time?
So typically I would say the lag time isn't long. It's it's interesting because consumers have if you look at the numbers already said but we're looking down the line and we're seeing the fact that prices are going to go upon cars potentially significantly, and so I'm going to go buy a new car. Now you and I have talked about that, and how well if it wasn't already on your plan, Like you don't want to go out and buy a car just because prices are likely to
go up. But it's it's true, like consumers are changing behavior and they're front loading purchases because of the reality of tariffs coming in, especially when they know in advance it's not going to be long before because of the way the supply chain works and the economy functions, it's not going to be too long before we see rises and prices on some of the things where tariffs are implemented, and so the Yale Budget lab predicts that if there
are like twenty percent broad based tariffs, the average household is going to feel the pain between like three and four thousand dollars in lost purchasing power per year. So that's a lot of money.
Yeah, add that on to the twenty percent inflation we've seen in the last couple of years. That's another just keep piling.
On, right, and it's I think it's exactly the opposite of what they were hoping for in a lot of ways when they opted for President Trump at the ballot box. Was Hey, like, lower prices is a huge part of the reason I'm going in this direction. And then lower prices and tariffs, well, you just can't really utter them
in the same breadth because they're they're going in opposite directions. Again, I think there are geopolitical reasons for certain specified tariffs, but I think for the most part this is this isn't great policy, at least from a consumer standpoint.
Okay, speaking of consumers and money and having it or not. We have tax stages two weeks away, although in La County you do have the extension because of the fires. It's everybody in La County has an extra six months, so October fifteenth is the deadline, but that means that probably fewer people have filed at this point.
That's exactly because of natural disasters California and North Carolina other parts of the South, when Hurricane Helene came through, some people have extra time, and so the IRS did announce, Hey, we're actually seeing we've had fewer filings so far than we did last year. But I think that makes sense because of the number of people overall who don't have to file yet, who have essentially the ability to file in October and not pay any sort of penalty, which
is great. If you don't live in La County, it's time to get on it, right, You got two weeks left. And I just want to say, like one of my favorite places for people to consider filing their taxes, it's cash app Taxes, and cash app is is typically like a peer to peer payment service, but they bought this service from credit Karma and it's the only legitimate free service I know of for federal and state filing, and it's pretty robust, like they do a pretty good job.
So that's one to consider especially if you have a not very complex tax return that you need to file. If you have a very complex tax return, it's typically a good idea to hire somebody to help you with that. And just know that you're probably at this point, even if you find somebody who says I'm willing to do your taxes, you're likely filing extension if you don't live in La County in order to in order to have
longer two file. That still doesn't mean that you don't have to pay estimated taxes if you're going to owe money, but you might still need to file extension anyway. You might not be able to get it done in time if you're finding someone else to help you with that. With your t.
Okay, Joel Larsgard, the host of How to Money every Sunday from noon to two on KFI, always such great advice and we appreciate it. I hope you get a big refund this year.
Thanks you too, Hate me all right,