$5,000 Check For Every Adult in the U.S. – Here’s Who is Eligible

(KMDL-FM) Based on the headline above, you're not wrong to assume that "every adult in the United States" is eligible for a $5,000 stipend that the current White House administration has proposed. But because this is "the government," sometimes words like "every adult" come with restrictions. We'll try to clear it up for you as best we can.

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You may have heard of the President's announcement that if his political party maintains control of Congress in the upcoming midterm election, then the United States Government will send $5,000 checks to the aforementioned every adult.

Where Would the Money to Pay Every Adult $5,000 Come From?

The current national debt of the United States is $40.62 trillion. So, I am sure you are wondering where the money would come from to fund such a large outlay of cash. According to a White House fact sheet, the funds come from savings created by mitigating government waste and from private investments.

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But the White House fact sheet stopped short of explaining exactly where that money would come from. We did the math; it's very rudimentary, but by our calculations, there are some 270 million adults in the United States. If they are paid $5,000 each, the total cost of the government expenditure is $1.3 trillion.

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The White House Fact Sheet did not disclose any income limits on who would be eligible for the $5,000 stipend. If you recall, certain stimulus and COVID payments came with an income requirement, but so far these "checks"  do not.

Why Are These Proposed Checks Not Considered to Be Bribes or Vote Buying?

If that question popped into your mind, you're not alone; the reason is because of the way the proposal is framed. Legal scholars say the "$5,000 Dividend" is because broad-based campaign promises are protected political speech rather than illegal transactions.

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We should also note that broad-based campaign promises made by politicians are seldom kept. Kind of like those "pinky swears" we make with friends when we promise to go out on Friday night. Obviously, time will tell on this issue, and based on the White House rhetoric, in order for the plan to come to fruition, certain political goals must be maintained.

There Are Restrictions On How You Can Spend the $5,000 Government Check

The only confirmed restriction on the $5,000 check is that the money must be spent in the United States. There was no suggestion of how that restriction would be policed and monitored, but I like the idea of spending money with United States companies and producers.

a sign that says pay your tax now here

There has also not been any confirmed word as to whether the $5,000 would be sent tax-free or if Americans would have to pay federal and state income tax on the money. Based on some very basic tax calculations, the Louisiana tax on that money would be approximately $150. If the check is considered a bonus or supplemental pay, the federal tax burden would be approximately $1,100. So, you're really looking at $3,750 if I did the subtraction correctly.

Besides the election- what's keeping the Government from sending the Money Now?

I guess there is one other restriction that could really quash this whole concept. Congress would have to approve the payments. Now, if the President's party maintains control, he should have enough support to get the funding measures through. I guess we will have to wait and see.

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Now, if all of this has you a little more confused than when you began reading, we can appreciate that. Here's what we do when we get confused by the government.