Speaker 1: Let's say good morning now to the host of How
Speaker 1: to Money on KFI, Joel Larsguard. Joel, Liberation Day is tomorrow.
Speaker 1: What is that going to mean? Oh?
Speaker 2: Yeah, that's like what everyone's that's the question on everyone's
Speaker 2: mind because we don't really know. The Liberation Day talk
Speaker 2: has been kind of sort of specific but also intentionally vague,
Speaker 2: and so I guess, like the great unveiling will come
Speaker 2: tomorrow and we'll find out what that we're talking about,
Speaker 2: but certainly it's going to mean increased tariffs on other
Speaker 2: countries who the President feel that the President feels like
Speaker 2: we don't have a reasonable trading balance with and so
Speaker 2: I think what that means for consumers at the end
Speaker 2: of the day is higher prices on certain goods, and
Speaker 2: it means right now a lot of uncertainty for businesses.
Speaker 2: And so it's been I would say it's been a
Speaker 2: tough start to the year economically and on the macro perspective,
Speaker 2: just because of the severe uncertainty and the fact that
Speaker 2: businesses are just like, where's this going and theack of clarity,
Speaker 2: which maybe we'll get more tomorrow has been one of
Speaker 2: the toughest things. The tariff part is tough, but the
Speaker 2: uncertainty part is tougher.
Speaker 1: Okay, So then and I guess these are questions that
Speaker 1: we won't know because you just said we kind of
Speaker 1: don't know until we know, But you know, like, are
Speaker 1: they going to start passing those increases along immediately? Is
Speaker 1: there going to be some lag time?
Speaker 2: So typically I would say the lag time isn't long.
Speaker 2: It's it's interesting because consumers have if you look at
Speaker 2: the numbers already said but we're looking down the line
Speaker 2: and we're seeing the fact that prices are going to
Speaker 2: go upon cars potentially significantly, and so I'm going to
Speaker 2: go buy a new car. Now you and I have
Speaker 2: talked about that, and how well if it wasn't already
Speaker 2: on your plan, Like you don't want to go out
Speaker 2: and buy a car just because prices are likely to
Speaker 2: go up. But it's it's true, like consumers are changing
Speaker 2: behavior and they're front loading purchases because of the reality
Speaker 2: of tariffs coming in, especially when they know in advance
Speaker 2: it's not going to be long before because of the
Speaker 2: way the supply chain works and the economy functions, it's
Speaker 2: not going to be too long before we see rises
Speaker 2: and prices on some of the things where tariffs are implemented,
Speaker 2: and so the Yale Budget lab predicts that if there
Speaker 2: are like twenty percent broad based tariffs, the average household
Speaker 2: is going to feel the pain between like three and
Speaker 2: four thousand dollars in lost purchasing power per year. So
Speaker 2: that's a lot of money.
Speaker 1: Yeah, add that on to the twenty percent inflation we've
Speaker 1: seen in the last couple of years. That's another just
Speaker 1: keep piling.
Speaker 2: On, right, and it's I think it's exactly the opposite
Speaker 2: of what they were hoping for in a lot of
Speaker 2: ways when they opted for President Trump at the ballot box.
Speaker 2: Was Hey, like, lower prices is a huge part of
Speaker 2: the reason I'm going in this direction. And then lower
Speaker 2: prices and tariffs, well, you just can't really utter them
Speaker 2: in the same breadth because they're they're going in opposite directions. Again,
Speaker 2: I think there are geopolitical reasons for certain specified tariffs,
Speaker 2: but I think for the most part this is this
Speaker 2: isn't great policy, at least from a consumer standpoint.
Speaker 1: Okay, speaking of consumers and money and having it or not.
Speaker 1: We have tax stages two weeks away, although in La
Speaker 1: County you do have the extension because of the fires.
Speaker 1: It's everybody in La County has an extra six months,
Speaker 1: so October fifteenth is the deadline, but that means that
Speaker 1: probably fewer people have filed at this point.
Speaker 2: That's exactly because of natural disasters California and North Carolina
Speaker 2: other parts of the South, when Hurricane Helene came through,
Speaker 2: some people have extra time, and so the IRS did announce, Hey,
Speaker 2: we're actually seeing we've had fewer filings so far than
Speaker 2: we did last year. But I think that makes sense
Speaker 2: because of the number of people overall who don't have
Speaker 2: to file yet, who have essentially the ability to file
Speaker 2: in October and not pay any sort of penalty, which
Speaker 2: is great. If you don't live in La County, it's
Speaker 2: time to get on it, right, You got two weeks left.
Speaker 2: And I just want to say, like one of my
Speaker 2: favorite places for people to consider filing their taxes, it's
Speaker 2: cash app Taxes, and cash app is is typically like
Speaker 2: a peer to peer payment service, but they bought this
Speaker 2: service from credit Karma and it's the only legitimate free
Speaker 2: service I know of for federal and state filing, and
Speaker 2: it's pretty robust, like they do a pretty good job.
Speaker 2: So that's one to consider especially if you have a
Speaker 2: not very complex tax return that you need to file.
Speaker 2: If you have a very complex tax return, it's typically
Speaker 2: a good idea to hire somebody to help you with that.
Speaker 2: And just know that you're probably at this point, even
Speaker 2: if you find somebody who says I'm willing to do
Speaker 2: your taxes, you're likely filing extension if you don't live
Speaker 2: in La County in order to in order to have
Speaker 2: longer two file. That still doesn't mean that you don't
Speaker 2: have to pay estimated taxes if you're going to owe money,
Speaker 2: but you might still need to file extension anyway. You
Speaker 2: might not be able to get it done in time
Speaker 2: if you're finding someone else to help you with that.
Speaker 2: With your t.
Speaker 1: Okay, Joel Larsgard, the host of How to Money every
Speaker 1: Sunday from noon to two on KFI, always such great
Speaker 1: advice and we appreciate it. I hope you get a
Speaker 1: big refund this year.
Speaker 2: Thanks you too, Hate me all right,