National Taxpayers Union expressed opposition to President Trump’s proposed $5,000 dividend payments that would increase the debt by approximately $1.85 trillion (including debt service costs) and add to our economic woes with higher inflation and higher lending rates.
NTU’s Executive Vice President Brandon Arnold stated: “Times are tough for many Americans and everyone could use an extra $5,000. Unfortunately, these dividend payments would worsen, not improve our affordability challenges. One of the biggest mistakes made during the pandemic was showering Americans with stimulus payments that poured gasoline on the inflation fire. At a time when bond markets are reeling, gasoline prices are soaring, and our national debt is breaking records, Americans cannot afford more borrowing and another round of out-of-control inflation. These massive subsidy payments would paper over our economic problems and create conditions that would likely lead to the Fed raising interest rates, despite the President’s appeal for a rate cut.”
“It’s extremely encouraging to hear that Treasury Secretary Scott Bessent and OMB Director Russ Vought are developing a strategy to address our enormous debt problem. We stand ready to assist them with this critical task. But there is no realistic way they can successfully reduce the debt if they intend to simultaneously add $1.85 trillion to the debt via this dividend payment scheme.”
“There are better, pro-taxpayer ways to help Americans prosper. Congress and the President should work together to reduce deficits, increase energy abundance, cut tariffs, and scale back regulations—all of which would help create jobs and put more money in the pockets of working Americans.”