Will You Get Musk’s DOGE Dividend Via A $5,000 Stimulus Check?

Will You Get Musk’s DOGE Dividend Via A $5,000 Stimulus Check?

In a recent social media exchange, Elon Musk, head of the Department of Government Efficiency, hinted at the possibility of issuing $5,000 checks to American taxpayers—a concept dubbed the ‘DOGE Dividend.’ This proposal, originating from investment firm CEO and DOGE adviser James Fishback, suggests allocating 20% of DOGE’s projected savings and distributing it to taxpaying households. Let’s assess what we know now.

The Genesis Of The DOGE Dividend And $5,000 Stimulus Check Calculation

Fishback introduced the ‘DOGE Dividend’ on X (formerly Twitter), proposing that a portion of DOGE’s anticipated $2 trillion in savings be returned to taxpayers in the form of $5,000 stimulus checks. “We wanted to help make DOGE real for millions of Americans. They deserve a portion of the savings DOGE will deliver under President Trump’s leadership,” Fishback said.

According to Fishback’s calculations, dedicating 20% of these savings would amount to $400 billion, translating to about $5,000 per household for the 78 million tax-paying households. Musk responded to this proposal by stating he would discuss it with President Trump.

Political And Economic Hurdles To The DOGE Dividend And $5,000 Stimulus Checks

Despite the enthusiasm surrounding the potential of a DOGE Dividends several significant obstacles exist:

• Congressional Approval: Any initiative to redistribute federal savings requires legislative authorization. Lawmakers may prefer allocating these funds to other priorities, such as reducing the national debt or extending existing tax provisions.
• Economic Implications: Budget experts caution in a MarketWatch report that distributing such substantial sums could exacerbate inflationary pressures, reminiscent of concerns raised during previous stimulus efforts. This would be especially ironic given that Republicans were the primary opponents of additional stimulus during the pandemic. Preston Brashers, a research fellow for tax policy at the Heritage Foundation, a conservative think tank, echoed this on X: “Love what DOGE is doing, but this is a bad idea. There’s no need to send ‘dividend checks.’ The dividend we get from slashing spending is that it brings inflation into check. But if the government sends out stimmy checks, inflation will come back with a vengeance.”
• Legal Challenges: DOGE’s very foundation is under judicial scrutiny, with ongoing lawsuits questioning its legality. The outcome of these legal proceedings could impact the feasibility of any proposed dividend.

The Broader Context Beyond The DOGE Dividend

The DOGE Dividend proposal emerges as the Trump administration explores various forms of tax relief. However, the cumulative cost of these measures, estimated by the Committee for a Responsible Federal Budget to be between $5 trillion and $11 trillion, raises concerns about fiscal responsibility and the potential for increased national debt. The DOGE Dividend may end up competing with other priorities of the Trump administration. These include campaign promises to eliminate taxes on tipped wages, Social Security benefits, and overtime.

The Upshot Of The DOGE Dividend And $5,000 Stimulus Checks

While the notion of a DOGE dividend and receiving a $5,000 stimulus check is enticing to many, it faces numerous legislative, economic, and legal challenges. As with many high-profile proposals, the path from concept to reality is fraught with complexities that require careful navigation.

In forthcoming articles, I’ll dive into the potential DOGE dividend in more detail, evaluating how impactful a $5,000 stimulus check could be, assessing how it could be implemented at a lower overall cost, and discussing the feasibility in more detail.