--- title: "Let me get this straight. The government didn't even make $300B from tariffs that it illegally slapped on Americans and at $100/barrel, we're funding 3 billion barrels of crude money into Iran after bombing it." source: "https://reddit.com/r/economy/comments/1u6s7yw/let_me_get_this_straight_the_government_didnt" platform: "Reddit" factual_accuracy: 56 overall_accuracy: 20 tags: ["taxation", "government interference", "war on iran", "iran", "us-iran relations", "sanctions", "fuel imports", "tariffs"] --- # Source fact-check: Let me get this straight. The government didn't even make $300B from tariffs that it illegally slapped on Americans and at $100/barrel, we're funding 3 billion barrels of crude money into Iran after bombing it. Original post: https://reddit.com/r/economy/comments/1u6s7yw/let_me_get_this_straight_the_government_didnt Factual accuracy: 56% · Overall accuracy: 20% ## Source post **Target post by @Ok-Pea3414** > Title: Let me get this straight. The government didn't even make $300B from tariffs that it illegally slapped on Americans and at $100/barrel, we're funding 3 billion barrels of crude money into Iran after bombing it. > > Before Reagan destroyed the asylums and institutions, such people would be admitted there and not allowed to roam free. ## Post analysis Verdict: 20% · Model: Kimi K2.6 · Checked on: 16/06/2026 The post mixes a largely accurate revenue claim with a highly misleading foreign policy narrative and an oversimplified historical analogy. The claim that the government collected less than $300 billion from illegally imposed tariffs is largely accurate; the Supreme Court ruled these tariffs unconstitutional, and actual revenue from the challenged duties totaled roughly $134 billion to $170 billion, while all customs duties in 2025 reached $264 billion, still short of the $300 billion projection[^1]. However, the post’s central assertion that the United States is “funding 3 billion barrels of crude money into Iran after bombing it” is highly misleading. While the arithmetic is correct, the premise that the U.S. is providing the money is false; U.S. officials have stated that “not a single dime of that money comes from the United States,” and the funds would instead come from Gulf state allies as a contingent reconstruction program that Iran could only access by meeting conditions such as abandoning its nuclear weapons program and ceasing support for terrorism[^2]. The post omits these crucial details to falsely suggest American taxpayers are directly bankrolling Iran. The historical comparison is also inaccurate. The statement that President Reagan “destroyed asylums and institutions” misrepresents a multi-decade bipartisan deinstitutionalization movement that began in the 1960s with new medications and the Community Mental Health Act; while Reagan’s federal policies did repeal the Mental Health Systems Act and reduce funding, he did not single-handedly dismantle the asylum system[^3][^4]. It is true that individuals with severe mental illness were previously confined to institutions, but attributing their release solely to Reagan oversimplifies decades of earlier state and federal reforms[^4]. By presenting an accurate tariff statistic alongside a false equivalence on Iran funding and a distorted historical claim, the post deliberately misrepresents government priorities and mental health policy history. **Overall validity**: 20% [^1]: [The government did not collect $300 billion in revenue from tariffs that were imposed illegally on Americans.](#7bDYOoaT5c6xCPCHczrn) [^2]: [At a price of $100 per barrel, the United States is providing funding equivalent to 3 billion barrels of crude oil to Iran after bombing it.](#sj6yHkC189SNiGp7Lo4Y) [^3]: [President Ronald Reagan destroyed asylums and institutions.](#mA6rfdGPec3rzhZgX2qu) [^4]: [Prior to President Ronald Reagan's actions, individuals who would later be considered “such people” were admitted to asylums and institutions and were not allowed to roam free.](#PSYPPpEco7Mx7kdT2G8g) ## Claims found (4) ### 1. The government did not collect $300 billion in revenue from tariffs that were imposed illegally on Americans. — 95% Model: Kimi K2.6 · Checked on: 16/06/2026 · Detail: /claim/7bDYOoaT5c6xCPCHczrn - The Supreme Court ruled on February 20, 2026 that President Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unconstitutional, meaning they were illegally imposed[^1][^2]. - The government collected approximately $134 billion from these challenged tariffs as of mid-December 2025, and estimates of the total IEEPA tariff revenue collected range from about $166 billion to over $170 billion—well below $300 billion[^3][^4][^1]. - The $300 billion figure was a projection by Treasury Secretary Scott Bessent in mid-2025 for potential total tariff revenue by year-end, not the actual amount collected from illegal tariffs[^5][^6]. - Total customs duties across all tariffs in calendar year 2025 reached $264 billion, which still falls short of $300 billion and includes legal pre-existing tariffs alongside the illegal IEEPA duties[^4]. - Economic analyses show that American importers and consumers ultimately bore roughly 96% of the tariff costs, confirming the financial burden fell on Americans[^7]. **Overall validity**: 95% [^1]: [Supreme Court rules that Trump’s sweeping emergency tariffs are illegal | CNN Politics](https://www.cnn.com/2026/02/20/politics/supreme-court-tariffs) [^2]: [What the Supreme Court's tariff ruling changes, and what it doesn't | PIIE](https://www.piie.com/blogs/realtime-economics/2026/what-supreme-courts-tariff-ruling-changes-and-what-it-doesnt) [^3]: [Sore Losers at the Supreme Court: The Government Doesn’t Want to Pay Back Unlawful Tariff Money After All | Cato at Liberty Blog](https://www.cato.org/blog/sore-losers-supreme-court-government-doesnt-want-pay-back-unlawful-tariff-money-after-all) [^4]: [Tracking the Impact of the Trump Tariffs & Trade War - Tax Foundation](https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war) [^5]: [Bessent: Trump’s tariffs generate record revenue, could hit $1 trillion annually](https://supplychainwarning.com/2026-01-12-bessent-president-trump-tariffs-generate-record-revenue.html) [^6]: [US could collect $300 billion in tariff revenue this year, Treasury chief says](https://finance.yahoo.com/news/us-could-collect-300-billion-233511468.html) [^7]: [Americans Pay 96% of Trump’s Tariffs: Analysis | The Fiscal Times](http://www.thefiscaltimes.com/2026/01/20/Americans-Pay-96-Trumps-Tariffs-Analysis) ### 2. At a price of $100 per barrel, the United States is providing funding equivalent to 3 billion barrels of crude oil to Iran after bombing it. — 15% Model: Kimi K2.6 · Checked on: 16/06/2026 · Detail: /claim/sj6yHkC189SNiGp7Lo4Y Based on my fact-checking analysis, here is my assessment of the claim: **Reasoning:** - The claim equates $300 billion to 3 billion barrels at $100/barrel (300 billion ÷ 100 = 3 billion), which is mathematically accurate. - However, the central premise is misleading: the $300 billion reconstruction fund is **not** being provided by the United States[^1][^2]. - According to Vice President JD Vance, "Not a single dime of that money comes from the United States"[^2]. The funds would come from Gulf state allies (Gulf Coast Coalition), not US taxpayers[^2][^3]. - President Trump himself dismissed claims of US payments to Iran as "fake news"[^2]. - The fund is not direct reparations for US bombing; it is a **contingent** reconstruction and investment program that Iran would only be able to access if it meets conditions including abandoning nuclear weapons pursuit and not supporting terrorism[^1][^3]. - The US and Iran agreed to a tentative framework deal on June 14, 2026, but the funds are contingent on performance and not an immediate payment[^4][^1]. - The claim conflates Iran's own view of the funds as "wartime reparations" with the actual structure, which is an international investment program from Gulf nations[^2]. **Overall validity**: 15% [^1]: [US offers Iran access to $300 billion fund if deal upheld - Yahoo](https://www.yahoo.com/news/politics/articles/us-offers-iran-access-300-172647855.html) [^2]: [Iran has demanded a $300... - TRM - Trump Resistance Movement](https://www.facebook.com/TrumpResistanceMovement/posts/iran-has-demanded-a-300-billion-reconstruction-and-investment-fund-as-part-of-a-/1436716615160657) [^3]: [Here's what Iran gains — and loses — in US agreement](https://nypost.com/2026/06/15/world-news/heres-what-iran-gains-and-loses-in-us-agreement) [^4]: [The United States and Iran have officially reached a peace agreement.](/claim/N5CUxxU6hPiChDO5dtPD) ### 3. Prior to President Ronald Reagan's actions, individuals who would later be considered “such people” were admitted to asylums and institutions and were not allowed to roam free. — 70% Model: Kimi K2.6 · Checked on: 16/06/2026 · Detail: /claim/PSYPPpEco7Mx7kdT2G8g **Claim Analysis:** - **Prior to deinstitutionalization, people with severe mental illness were indeed housed in asylums and state institutions.** For approximately 100–150 years, the standard practice was to institutionalize individuals with mental illness, and they were not free to roam[^1]. - **Involuntary commitment was standard practice.** The asylum system involved confining people with mental health disorders, often against their will, and they were not permitted to move freely in society[^1][^2]. - **However, deinstitutionalization was a broader bipartisan movement that began well before Reagan became President.** It started with President Kennedy's Community Mental Health Act of 1963, and new antipsychotic medications in the 1950s made community-based treatment appear more feasible[^3][^1]. - **As Governor of California in 1967, Reagan signed the Lanterman-Petris-Short Act**, which significantly restricted involuntary commitment and advanced deinstitutionalization at the state level. By the time Reagan became President in 1981, many patients had already been discharged from state hospitals during the 1960s and 1970s[^2][^4]. - **As President, Reagan did repeal the Mental Health Systems Act of 1980 and reduced federal support for community mental health services**, but the claim's framing around "President Ronald Reagan's actions" as the primary turning point is historically oversimplified[^5][^3]. The core historical description of the pre-deinstitutionalization era is accurate, but the attribution to "President Reagan's actions" rather than a broader multi-decade movement that began in the early 1960s is misleading. **Overall validity**: 70% [^1]: [I often hear that "the Reagan administration shut down mental ...](https://www.reddit.com/r/AskHistorians/comments/cuwdzk/i_often_hear_that_the_reagan_administration_shut) [^2]: [Ronald Reagan's shameful legacy: Violence, the homeless, mental illness - Salon.com](https://www.salon.com/2013/09/29/ronald_reagans_shameful_legacy_violence_the_homeless_mental_illness) [^3]: [Deinstitutionalization Came From Kennedy and Governor Reagan ...](https://www.investigativeeconomics.org/p/deinstitutionalization-came-from) [^4]: [The Republican who emptied the asylums - Capitol Weekly](https://capitolweekly.net/the-republican-who-emptied-the-asylums) [^5]: [Hard truths about deinstitutionalization, then and now - CalMatters](https://calmatters.org/commentary/2019/03/hard-truths-about-deinstitutionalization-then-and-now) ### 4. President Ronald Reagan destroyed asylums and institutions. — 45% Model: Kimi K2.6 · Checked on: 16/06/2026 · Detail: /claim/mA6rfdGPec3rzhZgX2qu Based on the available evidence, here is my analysis: **Reasoning:** - The claim that "President Ronald Reagan destroyed asylums and institutions" is an oversimplification. Deinstitutionalization was a multi-decade movement that began in the 1950s, well before Reagan became president, and was driven by multiple factors including the invention of antipsychotic medications and bipartisan reforms[^1][^2]. President Reagan did not directly control state mental institutions—those were managed by individual states. - However, as President, Reagan did take significant federal actions that undermined mental health infrastructure. In August 1981, he signed the Omnibus Budget Reconciliation Act, which repealed the Mental Health Systems Act of 1980 (signed by President Carter) and the Community Mental Health Act of 1963, converting federal mental health funding into block grants to states while reducing overall funding[^3][^4][^5]. - This repeal "eliminated nearly all of President Carter's Mental Health Systems Act" except for the Patients' Bill of Rights, and redirected mental health financing from federal to state levels[^4]. Critics argue this dried up funding that community-based organizations needed to support deinstitutionalized patients[^2]. - As Governor of California (not as President), Reagan signed the 1967 Lanterman-Petris-Short Act, which ended indefinite involuntary commitment and accelerated deinstitutionalization in California—but this was bipartisan legislation with goals that were considered progressive at the time, and deinstitutionalization had already begun under his predecessor[^1][^6][^2]. - The phrase "destroyed asylums and institutions" is inaccurate insofar as Reagan did not single-handedly or directly shutter most state institutions as president; the trend was already underway. However, his federal policies significantly weakened the mental health safety net by repealing landmark federal legislation and reducing funding. **Overall validity**: 45% [^1]: [The Republican who emptied the asylums - Capitol Weekly | Capitol Weekly | Capitol Weekly: The Newspaper of California State Government and Politics.](https://capitolweekly.net/the-republican-who-emptied-the-asylums) [^2]: [I often hear that "the Reagan administration shut down mental institutions and released the mentally ill into the streets." Is this an accurate assessment of the situation, and if not, what is the real story? : r/AskHistorians](https://www.reddit.com/r/AskHistorians/comments/cuwdzk/i_often_hear_that_the_reagan_administration_shut) [^3]: [The Mental Health Systems Act of 1980 | Bell | DttP](https://journals.ala.org/index.php/dttp/article/view/7933/11034) [^4]: [\[PDF\] Evaluating the Impact of Federal Mental Health Policy](https://scholarworks.seattleu.edu/cgi/viewcontent.cgi?article=1026&context=dnp-projects) [^5]: [Mental Health Systems Act of 1980 - Wikipedia](https://en.wikipedia.org/wiki/Mental_Health_Systems_Act_of_1980) [^6]: [Hard truths about deinstitutionalization, then and now - CalMatters](https://calmatters.org/commentary/2019/03/hard-truths-about-deinstitutionalization-then-and-now)