Americans earning under $40,000 annually are unlikely to receive the proposed “DOGE dividend” payments.
Why It Matters
The Department of Government Efficiency (DOGE) is responsible for optimizing federal government operations and minimizing costs. A recent suggestion for utilizing the savings involves sending lump sum payments to taxpaying households throughout the U.S., although this has yet to be officially confirmed.
What Is A ‘DOGE Dividend’?
James Fishback, CEO of the Azoria investment firm, has proposed direct payments of $5,000 to American taxpayers. This idea has caught the attention of President Donald Trump and DOGE leader Elon Musk.
In a four-page proposal shared on X, formerly Twitter, Fishback stated that sending $5,000 checks directly to American taxpayers would “restore public trust between taxpayers and their government, fulfilling this social contract and boosting tax morale.”
“In the long run, DOGE dividends will encourage further savings and efficiency, relieving the economy and empowering Americans who have been restricted for too long by D.C. bureaucrats wanting to micromanage their lives, families, and businesses,” Fishback remarked in an interview with Newsweek.
He estimated the total cost to be around $400 billion, with checks distributed to taxpaying households across the U.S.—but only to those who are net contributors to the tax system.
GETTY
Who Will Get Them?
It’s important to remember that this idea has not yet become official government policy, though Trump has shown interest.
Fishback mentioned that the payments would only be distributed to “households that are net-payers of federal income tax,” meaning individuals who contribute more in taxes than they receive back—at least in terms of direct income taxes, excluding other indirect methods like sales tax. Data from the Pew Research Center indicates that most Americans with an adjusted gross income below $40,000 effectively pay no federal income tax.
Fishback believes that targeting net contributors will alleviate concerns about inflation. Critics have raised worries that issuing large sums directly to Americans could fuel inflation, with a 2022 Federal Reserve report noting that stimulus checks from the COVID-19 pandemic contributed to an inflation increase of approximately 2.5 percentage points.
“Many low-income households effectively received transfer payments equal to 25 to 30 percent of their annual income,” Fishback explained, according to an NBC report. He emphasized that DOGE payments should be directed “exclusively” to net tax payers, as they are likely to save rather than spend the funds.
Ultimately, this suggests that those with the lowest incomes—who arguably need financial assistance the most—would not benefit from any proposed payments.
What People Are Saying
James Fishback, CEO of the Azoria investment firm, in his proposal: “When a breach of this magnitude occurs in the private sector, the counterparty usually refunds the customer for failing to deliver what was promised. It’s time for the federal government to do the same and reimburse taxpayers in light of what DOGE has revealed.”
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek: “Even with potential savings from recent cuts, stimulus checks are a costly endeavor for a government already burdened with debt and not facing a pandemic-level crisis. I anticipate that legislators will consider new proposals like tax cuts and relaxing some government benefit restrictions to divert attention away from stimulus checks as the primary avenue for supporting Americans.”
Lance Roberts, chief investment strategist and economist at RIA Advisors, told Newsweek: “According to the U.S. Debt Clock, DOGE has saved approximately $50 billion thus far, which translates to around $312.50 for the roughly 160 million U.S. taxpayers. If they distribute $5,000 checks, that would amount to an expenditure of $800 billion, significantly exceeding the savings achieved, which would certainly inflate the deficit and lead to higher interest rates, impacting the average consumer looking to purchase a vehicle or secure a mortgage.”
Joseph Camberato, CEO of National Business Capital, told Newsweek: “While I understand the rationale behind the idea, distributing $5,000 checks isn’t the most prudent course of action. Just because we have savings doesn’t mean we should start giving it away. As the saying goes: You can give a man a fish, or you can teach him to fish. If we’re wise, we should invest that money into initiatives that create long-term value, such as innovation, infrastructure, and businesses that generate wealth for everyone.”
What Happens Next
The future of DOGE dividends remains uncertain. Prominent Republicans, including House Speaker Mike Johnson, have expressed concerns, suggesting that the funds would be better used to reduce the national deficit.
