under consideration A New Concept where we give 20% of the Doge savings to American citizens and 20% goes to paying down debt because the numbers are incredible and his goal is very simple to abolish the Internal Revenue Service and let all the outsiders pay what's up you guys it's Graham here and how would you like to receive a few thousand for doing absolutely nothing that's right even though you probably thought that stimulus checks were a thing of the past think again in a remarkable turn of events the department of government efficiency proposed that a portion
of their savings should be given back to US citizens as a dividend and now Donald Trump seems to agree basically implying that instead of you paying the government the government is going to pay you especially since the savings currently stands at $55 billion and growing that's why we really have to talk about exactly what this means what you could expect how much you might realistically receive and the details that almost everybody misses because unlike the previous stimulus checks of 2020 there is some fine prints that could either be really good or really bad for you
depending on how much money you make or I guess don't make so you're going to want to hear this although before we start as usual if you appreciate the breaking news videos where I basically cancel everything I'm doing to try to get this out on time it would mean the world to me if you hit the like button or subscribed if you haven't done that already and as a thank you for doing that here's a picture of a Sheba enu so thanks so much and also big thank you to Surf shark VPN for sponsoring this
video but more on that later all right so in terms of where to begin let's talk about Doge except not the coin the department of government efficiency now even though this isn't an official government agency they are allowed to operate through an executive order acting almost like an advisory to help the government identify inefficiencies and what they see is wasteful spending so far this has included a $6.5 billion cut from us Aid 500 million from the Department of Education 230 million from the Social Security Administration 190 million from the general Services Administration 170 million from
the agriculture Department 152 million from the Department of Health and Human Services $30 million in the transportation department and $119 million in the Commerce Department it's also estimated that 6,700 IRS workers will be terminated who are not deemed critical to filing season a push to return government workers to the office and a federal buyout for those who wish to voluntarily resign but what's even more shocking is that after seeing all of this one user on X suggested that a portion of these funds be returned to taxpayers in the form of a dividend Elon responded Trump
agreed and here we are crazy right so how much of this could go back to you well first of all I see this mistake being made all the time you can't just take the total sum of all savings divide that by the entire population of the United States and expect to get an accurate answer after all that number encompasses children non- taxpayers non-citizens and 185 year-olds still collecting Social Security that was a joke so if we want to calculate the number of people who paid taxes in any given year according to the tax Foundation 77
million people or the top 50% paid 97.7% of all income tax in the United States and if we round up to the people who paid some amount of income tax in the prior year I think it's pretty safe to say that roughly 855 million people would theoretically get to benefit from a tax refund from there we then have to calculate what percentage of those savings could then be given back to each person and according to Trump this could amount to 20% meaning if Doge Cuts $55 billion worth of spending 20% of that is 11 bill
million spread that amongst 85 million people and each person would receive wait for it $129 with the rest being applied towards other initiatives and paying down the government debt of course keep in mind that Doge has only been operating for a month and if these savings continue at the same trajectory over the course of a year each person could see a $1,550 refund so all of a sudden those begin to add up for example in the beginning do Jam to cut two trillion ion dollar worth of unnecessary expenditures and if that were to happen unlikely
as it is take 20% of that spread it amongst 85 million people and that is where you get the $5,000 headline that you've probably seen on the news however do keep in mind that that $2 trillion figure was later backtracked by Elon Musk who called it the best case scenario especially considering that the discretionary budget only went as high is 1.7 trillion and just recently Elon Musk tweeted that I never mentioned the specific dollar figure just said that I would see if the president wanted to consider a tax reduction linked to Doge savings the amount
would therefore obviously be proportional to how much savings Doge actually achieves the top Doge priority remains however reducing the deficit to stop inflation and lowering people's interest rates although despite some of these numbers coming in much lower than expected according to the proposal the goal is to write the wrong done to the taxpayer share the benefits of cost cutting boost morale to increase us tax receipts and incentivize the labor force participation and 2025 on top of that unlike the covid era stimulus checks which were given out by individual with an income below a certain threshold
and then phased out it's not out of the ordinary to think that the same would apply here except the exact opposite as in the more money you make in paid in taxes the more money you would get back after all if someone paid $100,000 to the IRS they should in theory be entitled to a greater percentage of the refund than the person who only paid $100 since that person contributed more however in terms of the likelihood of this passing as well as the impact this is probably going to have on the economy inflation and its
effectiveness of actually making a difference you're going to want to hear this because there's a lot of misinformation floating around on the internet that you're going to want to be made aware of although before we go into that just like it's important to be careful and aware of how your tax dollars are spent it's equally as important to be protective of the data that you share online to give you an example of this I've been traveling a lot lately for my podcast the iced coffee hour and I've heard horror stories of what happened happens when
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no connection or activity logs and you could rest assured that your activity is private so if you're interested in protecting yourself go to Surf shark.com to get an extra 4 months for free they also have a 30-day money back guarantee so there's no risk to try it out again the link is down below in the description to get started today thank you so much and now let's get back to the video all right now in terms of the impact another stimulus or refund could have on our economy inflation and your wallet we need to talk
about the ones who are tasked to control it the Federal Reserve in terms of upcoming interest rates they have just gone on record to say that current policy is significantly less restrictive than it had been before the rate Cuts meaning we're unlikely to see them cut interest rates even further anytime soon given the high probability of prices believe it or not going higher in fact according to their statement it was indicated that firms would attempt to pass on to Consumers higher input costs arising from potential tariffs or in other words if companies end up paying
more then you end up paying more all of this points to a very strong chance that we're probably not going to see any rate Cuts anytime soon the economy is going to remain strong because of tax cuts and deregulation which is going to keep prices elevated and they're going to take a wait and seee approach for inflation to eventually return back to their 2% Target which could be a while separate from that there's also the concern that another government payout is going to contribute to inflation and make it worse and the answer to that is
somewhat mixed see previous research suggested that 42% of the co era inflation was the result of stimulus checks which is certainly a lot but since inflation is primarily caused by spending and not saving one analysis made the argument that any inflation we see from this would be mild at most because the households receiving a refund would be more likely to stash it away or invest instead of spending it therefore it wouldn't contribute as much to consumption on top of that this check wouldn't be printing more money out of thin air it would simply be returning
what people had already paid but in terms of what I think about this realistically if people get a100 to ,000 check out of nowhere most likely it's going to be spent that's just the way it is I mean keep in mind as of now the personal savings rate is at an all-time low household debt is at an all-time high and if I were to bet if 11 billion suddenly enters the economy again there would most likely be a small uptick in inflation albeit probably a lot smaller than what we saw back in 2022 of course
you could also make the argument that tax cuts are inflationary or really anything that gives people more money back in their pockets is likely to cause prices to rise at least a little bit but all of that is to say that realistically we're not going to get rate Cuts anytime soon there's likely going to be a long road ahead of us especially if tariffs end up being passed back to the consumer and we're likely going to have to patiently wait for inflation to return back to 2% before we see any movements on interest rates that
is of course unless we see a recession or any Black Swan event that we just can't see coming although in terms of your chances of getting a refund check and my thoughts about everything that's just happened here's what you need to know overall I think you could tell I'm a fan of reducing government spending waste unnecessary expenditures whatever you want to call it I think it's long overdue I mean there should be no reality in which the Pentagon fails its seventh audit in a row politicians are caught taking bribes and hundreds of billions of dollars
goes missing it just seems common sense that all government spending should be public and traceable down to the penny or I guess in this case no down to the nickel I just think there's no accountability and no incentive for the government to spend any less money because they become so accustomed to just pressing a button and printing more money that it doesn't matter and the go-to solution has just been borrow more money tax the rich and blame the other side for your problems and this applies by the way to both Democrats and Republicans neither side
is perfect this has been going on for decades so from that perspective yes I am all for it and I think there's a lot to cut down on but it's yet to be seen how much of a difference this will actually make how much can realistically be saved and whether or not it's dangerous to take a cut first find out later approach like admittedly I have concerns about cutting services or departments which could be of service but won't be found out until much later until maybe some damage is done now the flip side to this
is that slowly cutting spending and then evaluating its Effectiveness could take years or even decades so I see why they're taking a cut very fast approach here but like I said I don't doubt that there are some uncertainties here that we're not going to know until much much later like remember that article about 150 year-olds collecting Social Security well as it turns out one of Trump's appointed Commissioners clarified that these were simply people on record who didn't have a certificate of death not that they were actually receiving benefits and apparently the Social Security Administration stops
payments to people who are older than 115 years old which has been in effect since 2015 I say this just to temper some of the expectations of massive savings up front and some of the headline numbers you'll end up seeing are pretty ambitious not to mention if you actually want to make a sizable difference to the government deficit upfront in a way that's not controversial two economists proposed that you could simply allow agencies to roll over unused funds into the next fiscal year and don't let Congress use the funds as a gauge by which they
reduce future budgets I know right it just seems again it's common sense I don't see how anyone could disagree with this prove me wrong secondly as far as your likelihood of getting a refund I actually think it's a pretty good chance over the next year or two but I don't think it's going to happen anytime soon after all any savings would have to be audited locked in and guaranteed longterm before you get any money back personally I think you're way more likely just to get a federal tax credit towards Money Paid in future years then
you are to get a check or Visa gift card applied today that would just be way too difficult to implement but all of this at this point is just speculation let me know what you guys think of this down below in the comment section as always I do my best to read and respond to as many of them as I can thank you so much again to Surf shark VPN for sponsoring this video and until next time
