Ted Cruz Says Trump’s $5,000 Dividend Should Target Working Taxpayers

Sen. Ted Cruz, R-Texas, said he could support President Donald Trump's proposed $5,000 dividend for American adults if the payments were structured as tax refunds and targeted at people who work and pay taxes.

Sen. Ted Cruz, R-Texas, says he could support President Donald Trump's proposed $5,000 dividend if it were structured as a tax refund for working taxpayers. [Photo: Ted Cruz Facebook]

Cruz made the comments during an interview with Fox News host Jesse Watters on Sept. 10, as Republicans debated Trump's proposal to issue $5,000 payments if the party retains control of both the House of Representatives and Senate in the November midterm elections.

“It's a tax refund. A tax refund,” Cruz said, adding that he would support such an approach because he believes government policy should encourage people to work.

He said he would not support payments to people who are physically able to work but choose not to. Trump announced the proposed “Trump dividend” during the Republican midterm convention in Dallas.

He said every adult US citizen would receive $5,000 if Republicans won control of both chambers of Congress.

The proposal has faced skepticism from Republicans as well as Democrats.

Senate Appropriations Committee Chair Susan Collins, R-Maine, said the proposal appeared to have no income cap and would be “extraordinarily costly.” She also said tax and spending decisions should not appear to be tied to election results.

The potential cost would exceed $1 trillion if approximately 250 million to 270 million adults received $5,000 each.

The Tax Foundation estimates that a payment to 250 million eligible adults would cost about $1.25 trillion.

Trump has not provided a detailed mechanism for distributing the payments or explained how Congress would finance the program. The proposal therefore remains a political pledge rather than an enacted benefit.