NEWLY-elected President Donald Trump is contemplating issuing $5,000 stimulus checks to American taxpayers as a “DOGE dividend.”
A tax expert provided exclusive insights to The U.S. Sun regarding the feasibility of the proposed one-time payment for taxpayers.
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Referred to as the “DOGE dividend,” Trump is considering reallocating 20% of the savings from Elon Musk’s Department of Government Efficiency, or DOGE, to taxpayers, as he revealed in a speech last week.
“The figures are astonishing, Elon. So many millions, billions – hundreds of billions. We are contemplating giving back 20% to the American public,” the president stated during his address.
He also hinted at potential plans to direct 20% of the savings toward the U.S. national debt, which reached $35.5 trillion in the 2024 fiscal year, marking a $1.4 trillion increase from 2023, as reported by the Treasury Department.
While mentioning the “DOGE dividend,” Trump did not provide further specifics or details regarding the $5,000 stimulus checks.
Tax expert Armine Alajian cautioned Americans against getting overly optimistic about the prospective checks just yet.
“Don’t start relying on DOGE stimulus checks just yet. Economists have questioned DOGE’s calculations, suggesting the numbers simply do not add up at this point,” Alajian, a CPA, tax consultant, and founder of the Alajian Group Inc., communicated to The U.S. Sun.
The new department, aimed at minimizing government expenditures, has claimed to have saved $65 billion as of Monday.
Officials indicated that the savings came from various measures, including terminating building leases, reducing jobs, and regulatory cost reductions.
However, these figures have faced considerable scrutiny, with only $16.6 billion in savings published on the organization’s website, according to Fortune.
The publication also noted inconsistencies on the DOGE platform, including a contract’s savings inaccurately labeled as $8 billion instead of $8 million.
In addition to concerns over the accuracy of DOGE’s purported savings, Alajian pointed out worries that “injecting” such a large amount of money into the economy might exacerbate inflation.
“It doesn’t appear that it’s fully formulated at this moment, making it impossible to predict if or when these checks could materialize,” she concluded.
Don’t start relying on DOGE stimulus checks just yet. Economists have questioned DOGE’s calculations, suggesting the numbers simply do not add up at this point. It doesn’t appear that it’s fully formulated at this moment, making it impossible to predict if or when these checks could materialize.
Armine Alajian
COSTLY INITIATIVE
The concept of the “DOGE dividend” was introduced by James Fishback, the CEO of investment firm Azoria, in a post on X last week.
“President Trump and @ElonMusk should announce a ‘DOGE Dividend’ – a tax refund check sent to every taxpayer, funded exclusively by a portion of the total savings generated by DOGE,” wrote the CEO.
Fishback shared a detailed proposal for the stimulus checks, defining them as refunds to be sent only to tax-paying households.
He emphasized that the checks would not lead to inflation, being “funded solely by DOGE-driven savings, unlike the COVID stimulus checks that were financed through deficits.”
What is DOGE?
The U.S. DOGE Service Temporary Organization, also known as the Department of Government Efficiency or DOGE, is a project initiated by President Donald Trump and spearheaded by billionaire Elon Musk.
DOGE was founded to dramatically decrease federal spending and “modernize federal technology and software to enhance governmental efficiency and productivity.”
Upon its introduction, it aimed to save an astonishing $2 trillion annually.
The organization claimed to have already saved $65 billion in government expenditures, although this figure remains unverified.
DOGE has implemented notable cuts across multiple agencies, including the United States Agency for International Development, the Department of Education, and the Centers for Disease Control and Prevention.
The CEO proposed that this new advisory body set aside 20% of the total savings for the stimulus checks while directing the remaining 80% toward decreasing national debt.
He envisioned the funds being allocated exclusively to taxpayers above a specific income threshold, contrasting with the pandemic checks distributed indiscriminately.
Fishback estimated that approximately $400 billion would be shared among 79 million households, translating to around $5,000 per household.
Responding to the CEO’s initiative, Musk remarked, “Will check with the President.”
The billionaire brought the proposal to Trump, who embraced the concept.
“A 20% dividend, so to speak, for the savings that we’re generating by addressing waste, fraud, and abuse, along with all other inefficiencies. I consider it a brilliant idea,” the president stated.
Trump is pursuing further reductions in government spending through DOGE, which includes a proposal to slash SNAP benefits by billions of dollars.
Meanwhile, inflation rates have risen for the first time since the president took office – a change he attributed to Biden.
