Trump Under Fire Over Proposed $5,000 Election ‘Dividend’ for US Citizens
• Plan tied to Republican control sparks accusations of vote-buying •Economists warn payment could cost over $1tn amid US deficit •Lawmakers question funding plan Emmanuel Addeh in Abuja US President
Donald Trump has faced criticism for his proposal to provide a $5,000 "Trump dividend" to American citizens if Republicans maintain control of Congress during the upcoming November midterm elections. The plan, announced during a Republican convention in Dallas, has been met with skepticism from both economists and some Republican lawmakers.
Critics argue that the plan could cost more than $1 trillion, a significant burden for the already strained US federal budget. Marc Goldwein of the Committee for a Responsible Federal Budget estimated that the cost would be about $1.2 trillion in a single year, surpassing all three rounds of COVID-19 relief payments combined. Goldwein warned that financing the payment through additional borrowing could increase the federal deficit and contribute to inflation.
Democratic leaders have also accused Trump of attempting to influence voters with public funds, comparing the proposal to previous promises of direct payments. California Governor Gavin Newsom and the Democratic National Committee criticized the plan, arguing that it would offer empty promises to American voters without addressing pressing issues like high food and fuel prices, healthcare costs, and stagnant wages.
The proposal has also raised concerns about Trump's tariff policies, with financial economist Peter Schiff warning that the promise could further destabilize US Treasury markets. Schiff noted that describing the payments as "dividends" was misleading, as the US government is running large fiscal deficits rather than generating surpluses.
Within the Republican Party, reactions to the proposal vary. Vice-President JD Vance suggested the benefit could be means-tested to limit payments to lower-income citizens, while Senator Bernie Moreno of Ohio expressed support for the plan and pledged to introduce legislation for its implementation after the midterm elections. However, the funding, eligibility, and implementation of the proposal remain unresolved as the election looms.
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