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Washington (AP) – An idea that was proposed for the first time on social media has stayed with the White House and received the enthusiastic confirmation of President Donald Trump: take some of the savings of billionaire Elon Musk to reduce government spending to return to taxpayers.

“I love it,” Trump said late Wednesday on Air Force One when he was asked about the proposal.

If Musk’s goal of $ 2 trillion for output cuts will be achieved next year, the supporters of the idea say that a fifth of these funds could be distributed to taxable households in checks of around $ 5,000.

How Elon Musk achieved so much power in the Trump administration

Before you start planning a engast, however, budget experts say that large savings fats are unlikely to have a third of the annual expenditure of the Federal Government. And to send out a round of checks – similar to that of Trump and then during the pandemic incentive payments – could stimulate inflation, the economists warn, even though officials in the White House reject this concern.

With the annual budget deficit of 1.8 trillion dollars last year and Trump, which proposes extensive tax cuts, there will also be considerable pressure to use all savings to reduce this deficit instead of passing on some of it.

Here is what you should know about the proposal:

Where does that come from?

James Fishback, founder of the investment company Azoria Partners, whom he started on Trump’s Mar-A-Lago estate in Florida, promoted the idea on Tuesday on X, previously known as Twitter, and asked Musk to answer that he ““ the president “Would inquire. Fishback said that there were also “behind the scenes” talks about the problem with officials in the White House.

Read more: The head of social insurance comes after Doge access to recipient information, AP reports, AP reports

Fishback supports that the impartial congress office determines how much dog has saved. If Doge shorten 500 billion US dollars by July 2026, the checks would rather be $ 1,250 than $ 5,000.

“We uncovered enormous waste, fraud and abuse,” said Fishback in an interview with the Associated Press. “And we will do well and pay a reimbursement and then rewrite the social contract between the taxpayer and the federal government.”

Fishback supports the sending of checks instead of using all the money to reduce the deficit, as it would encourage Americans to search for wasteful government spending “in their communities” and report it to it.

When will I get my check?

How much can Dogen really save?

Read more: Trump and Musk’s claim to check the claims of facts cut the government fraud and abuse “fraud and abuse”

One of the biggest steps of the Trump administration was to relieve tens of thousands of government employees, but such changes will probably not achieve great savings.

“Only a small proportion of total expenditure goes to federal employees,” said Douglas Elmendorf, former director of the Congress budget office. “The big money is in the areas of federal benefits and in federal taxes, and these are not valid.”

In November, John Diiulio Jr., a political scientist at the University of Pennsylvania, wrote in an essay for the Brookings Institution that “the entire state civil workforce of around 95 percent of all federal expenditure and the US $ 34 trillion ‘Diiulio found that government companies and non -profit organizations that receive government funds now three times like this many people like the 2.2 million employees of the federal government.

It is also not clear how much savings can be achieved without the congress being legally codified it.

“To relax someone does not save money when the congress comes back and reduces the appropriation for the agency of this employee,” said Elmendorf. “If you fire someone but leave the appropriation there, then … this money can be spent on something else. Therefore, Doge can only achieve savings until there are also legislative changes. “

Wouldn’t another round of the government check contribute to a higher inflation?

Trump and his economists suspect Bidens $ 1,400 for the stimulus tests distributed in spring 2021 because they have fueled the worst increase in inflation for four decades. However, they claim that sending checks that come from reduced government spending would not increase inflation.

Kevin Hassett, director of the National Economic Council of the White House, said on Thursday, since the government would have been spent by the government anyway, if it had been spent by consumers, it would be a laundry. The stimulus tests of bids and Trump during the pandemic were deficit financing, which can be more inflationary.

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But Ernie Tedeschi, director of economics in the Yale Budget Lab, and an economist in the White House of Biden, said that more government checks “the last thing we need economically at the moment”.

The unemployment rate of the United States is now much lower than in 2021, said Tedeschi, which means that companies may have difficulty hiring enough workers to satisfy the additional demand caused by a round of checks. Lack of workers can increase prices.

However, some Democrats agree to Hassett, but for various reasons.

“I cannot imagine that they would be inflationary because I cannot imagine that they are big enough,” said Elaine Kamarck, Senior Fellow in Governance Studies at the Brookings Institution.

“There is no money there and certainly not enough money to make a big contribution to taxpayers,” she said. “The guy only says things,” she added and referred to Musk.

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