US President Donald Trump wants to make a significant but limited investment in newborns through his “big beautiful account”. On Monday, the President offered a provision in his Law to Reduce Taxes, which proposes to open investment for all American children born during the current period of Trump as president.
These accounts have been marked “Trump Accounts” and families of all levels of income could accept them. The “Trump Accounts” pilot program is included in ‘One big beautiful account‘.’
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What are “Trump accounts”?
Simply put, these are new investment accounts exempt from tax in favor of all American children. The earlier version of the bill called them Maga accounts, referring to the presidential make of America Great Again Slogan.
During the round table on Monday, Trump said: “For each US citizen born after 31 December 2024, 1 January 2029, the federal government will contribute a one -time contribution to a tax postponed to the tax market.
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This provision means that every American citizen born between the beginning of 2025 and at the end of 2028 would initially receive $ 1,000 from the Federal Government to the tax postponed. During the first 18 years of the child, accounts would be associated with a mutual fund or index fund associated with the performance of the stock market.
Furthermore, this initiative allows parents to contribute up to $ 5,000 without tax on “Trump accounts”.
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The money would only be accessible to the child after reaching the condition of an adult at the age of 18. At the age of 18, children could withdraw money for a deposit for a house, education or for the start of a small business. If the money is used for other purposes, they will be taxed at a higher rate.
The complete balance would be available at the age of 30, the USA informed.
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How much will the program cost?
With approximately 3.6 million children born in the US every year, costs could exceed $ 3 billion a year, Washington Post reported. Republicans have not yet published any estimates of the program’s cost.
Why Trump is pushing cash for children
1. Strengthening a large beautiful account
In the middle of criticism from several people, including former helper Elon Musk, Trump is trying to get his “big, beautiful” tax and expenditure law approved by the Senate. On Monday, Trump worked on phones and took social media to try to influence Republican holding on his tax law on more trillion dollars.
Trump also promoted the program as a pro-family initiative at a time when its administration and Congress Republicans face criticism over cuts that would make the tax, expenditure and immigration law programs such as Medicaid and the Program of Additional Nutrition.
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He is afraid that a package of taxes and expenditure to reduce expenditure will bring more than $ 3 trillion to US state debt in the next decade.
Last month, the House of Representatives approved the bill by one vote. Now they face the opposition of mild and ultra -conservatives in the Senate.
2. Wealthy and a bad division
Many in favor of this provision say that they do not distinguish between the rich and the poor.
According to Washington Post, Trump is similar to “Baby Bond” programs in California, Connecticut and Washington, DC.
The report states that while these local programs have been created to reduce the wealth gap by supporting children in need or lower -income families, Trump accounts will be available to Americans regardless of their socio -economic status.
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In addition, the US has said that the program serves as a democratic argument that the bill is helping the richest Americans of the nation.
Meanwhile White house He said, “One big beautiful law will change the lives of middle-class families throughout America”-“along with historical tax cuts, increased tax credit for children, higher wages and monumental economic growth.”
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3 .. “Strong Beginning of Life”
President Trump said on Monday that a mega account would “allow countless American children to have a strong beginning of life without the cost of an American taxpayer.”
Meanwhile, Dell CEO Michael Dell said: “With these accounts, children will be more likely to graduate from a college, start a business, buy a house and achieve lifelong financial stability.”
In the middle of the buzzing over “Trump accounts”, Donald Trump gathered on Monday at the White House to emphasize the provision in his tax law, which would put $ 1,000 into an investment account for children born over the next few years.
Among the companies that the White House said, Dell Technologies, Salesforce, Uber and Goldman Sachs took part.
“They will really have a big jump to life, especially if we are lucky with some numbers and economics,” the US president said.
3. Association of child poverty
Although the investment would be symbolically meaningful, it is a relatively small financial commitment to deal with child poverty in a wider federal budget of $ 7 trillion, Bloomberg reported. He added that, provided with a 7 % return, $ 1,000 in 18 years would grow to about $ 3,570.
(Tagstotranslate) Trump’s accounts
