Our transformed and renamed United States Digital Service, a Department founded by President Obama in 2014, is now operating under the moniker Department of Government Efficiency (DOGE). Until recently, “government efficiency” was an oxymoron, eliciting derisive smiles from taxpayers everywhere. The reborn agency is headed by Elon Musk, who is working for us without compensation.

Having hit the ground running, DOGE has so far identified and recommended for eradication more than $55 Billion (9 zeros) of eye-popping and jaw-droppingly ridiculous expenditures. They’ve only just begun, and have targeted at least $1 Trillion (12 zeros) for permanent elimination during the 18 months of DOGE’s self-imposed (initially, anyway) shelf life.

This past week, Musk himself floated a trial balloon regarding rebating of a portion of the savings to taxpayers by sending every taxpayer (defined as one person or a couple filing one tax return) $5,000. I am totally against the concept of a refund. Before outrage begins, let me explain my reasoning.

In fiscal 2025, the U.S. Government will take in about $5 Trillion in Total Revenue, but will spend about $6.8 Trillion, leaving a Budget Deficit for this fiscal year of around $1.8 Trillion. Since the lion’s share of government expenditures are mandatory (examples include Social Security payments and interest on our National Debt), all the money collected from taxpayers is applied to necessities. Discretionary expenditures, including excesses being identified by DOGE, are paid from funds that are either borrowed or created out of thin air, using an “electronic printing press” at the Federal Reserve (FED).

The $1.8 Trillion in excess spending WAS NOT taken from taxpayers, and should not be returned to them. Rather, it was borrowed or created, and added to the involuntary debt load we taxpayers are forced to accept and pass along to subsequent generations. In my opinion, DOGE has no business sending the money to people who didn’t supply it and didn’t want it to be borrowed or spent in the first place.

Until spending is reduced, and/or government revenues increase by the $1.8 Trillion shortfall, Budget Deficits will continue. Until then, our annual shortfall will add to the National Debt. Only when an actual Budget Surplus is realized in any fiscal year will the Current Year Deficit go negative and, consequently, the National Debt go down. A surplus only exists when revenue comes in higher than expenditures. What a concept!

As much as we could all use a cash rebate to help offset the ravages of inflation, we must decide as a nation where our priorities lie. Only once the budget is brought into balance, could further savings could be split between taxpayer rebates and debt reduction. For a better solution, check next week’s Blog on this website.