The anticipated $5,000 DOGE Stimulus check is real, and very soon, you might be receiving the checks. This move comes after the Department of Government Efficiency confirmed that its efforts to slash government spending have started to bear fruit. So, how does this stimulus work, where does the money come from, who qualifies for it, and how will you get paid?
What is the $5,000 DOGE Stimulus Check?
The $5,000 DOGE Stimulus Check is part of a plan to distribute a portion of the savings collected by DOGE, which is a government department led by Elon Musk. The check is rooted in the idea to return 20% of the savings to taxpayers in the form of dividends or refund checks. So far, the idea has sparked a lot of interest as it could put money into the hands of eligible taxpayers.
How Did the Stimulus Check Idea Come About?
The DOGE stimulus check was proposed by the CEO of Azoria Partners, James Fishback, who suggested that a portion of the cuts collected by DOGE should be returned as rewards to American taxpayers. He argued that the dividends would provide financial relief while also encouraging taxpayers to help the government identify wasteful spending in government organizations.
Elon Musk confirmed that the DOGE initiative was progressing successfully, and according to recent reports, it has saved the federal government approximately $130 billion. However, this figure is yet to be confirmed officially. Elon Musk also added that the stimulus checks would be fully funded through the savings rather than being tied to deficit spending like previous stimulus checks.
Qualifications for the $5,000 DOGE Stimulus Check
Unlike previous stimulus checks, such as the Economic Impact Payments, which were sent to a wide range of Americans, the DOGE stimulus check will be more selective.
Reports suggest that this stimulus check will only be sent to families who are taxpayers and whose net tax contribution is positive. This means that Americans who don’t pay taxes on adjusted gross income (AGI) less than $40,000 will miss out. Additionally, the stimulus check will be sent to households, not individuals.
What Critics Say About the DOGE Dividends
Some economists have argued that DOGE stimulus is a bad idea and that the money could be better spent on clearing debts and reducing budget deficit. Judge Glock, director of research at the Manhattan Institute said, “It would increase the deficit, it would increase immediate consumer spending, and that would have inflationary consequences, which is something we don’t want right now.”
Elaine Kamarck, a senior fellow in governance studies at the Brookings Institution, said, “There’s no money there, and certainly not enough money to make a big contribution to taxpayers.” She went ahead to say that the DOGE dividends idea is ridiculous and that Elon Musk just says things.
Will the DOGE Stimulus Cause Inflation?
According to James Fishback, who proposed the idea, the DOGE checks would not cause inflation because they are exclusively funded with DOGE-driven savings, unlike COVID stimulus checks, which were deficit financed. Additionally, these stimulus checks are funded through savings from unnecessary spending and therefore, they do not add to the national debt.
Conclusion
The $5,000 DOGE stimulus check is a brilliant idea that could benefit millions as of households, but it is yet to be approved by Congress. For households to qualify, they must have net-income taxpayers who meet certain income requirements.
The payment will be distributed as a refund and will be financed from savings generated by the Department of Government Efficiency.
Although the idea has garnered attention and support from notable figures like Elon Musk and James Fishback, it will require approval by Congress before it becomes a reality. Therefore, taxpayers should not expect the funds in their accounts yet.
In the meantime, stay tuned for updates on the DOGE stimulus checks and also follow news from DOGE or Congress to know if the idea will become a reality.