Justin Wolfers: What the White House Isn't Telling You About Trump Accounts

[CousinIT]

https://newsletter.platypuseconomics.com/p/what-the-white-house-isnt-telling

On July 4th—our nation’s 250th birthday—the federal government trumpeted the official launch of Trump Accounts.

Here’s the pitch: Babies get a thousand bucks—a little stake in the stock market—and over time, that money grows into something much, much larger.

But here’s the reality: Trump accounts are actually two separate policies jammed into one. The first is a tiny, temporary giveaway for babies born in a very narrow window. The second is a brand-new, permanent tax break that will mostly benefit those who already have plenty of money to save. The first got all the headlines. The second is the more consequential policy.

Which means rather than giving poor kids a leg up, these accounts are far more likely to widen the gap. . . .

[Kid Berwyn]

1. Funny how that works.

Like a wolf wrapped in a sheepskin, it’s just more Welfare for the Wealthy.

[surfered]

2. It rewards Wall Street as funds in the Trump Account can only be invested mutual funds comprised of the S&P

[Ray Bruns]

3. It's a scam, that's what they aren't telling you.

[littlemissmartypants]

5. Not entirely. If you have a baby you should read the article. ❤️

[spanone]

4. Anything he does...

💩

[Dr. T]

6. I just assumed it was one of those

too-good-to-be-true scams that Diabolical Donnie thrives on. The twitfuck MAGAt base laps up that stuff like a dog licking snot off a sidewalk.

[jmowreader]

7. What else they're not telling you

Does anyone really expect these Trump Accounts will have any money in them in 18 years? You know that stupid mofo is buying crypto with all that money…and Trump’s crypto is SOOOO successful at moving money from mark to grifter.

[RedWhiteBlueIsRacist]

8. Trump Accounts. Republicans block the Epstein files so Trump can have his hands in your kids pockets, or elsewhere.

[Raftergirl]

9. It's just another tool in the tool box a parent can use.

If you have a child born in the applicable years to get the $1k, it’s a no brainer.

Grandparents can also contribute money into the account.

Birthday money given to kid, you can put that in too. Kid shovels the neighbors driveway, earns $25, that can go in there, too. It certainly is better than a savings account.

It’s very easy to sign up and the app is very easy to use.

Once the child is 18, and takes control of the account, they can convert it to a Roth. Most 18 years olds have hardly any income, so likely the tax they would have to pay would be minimal or none at all. Then whatever is in there and any money after that can be withdrawn tax free after age 59. One can also withdraw the contributions anytime without a penalty,

Of course, you have to make sure you are funding your retirement first - or are we against that too because more of that benefit accrues to people in higher income brackets, too?

There are already other custodial accounts one can set up, and 529’s. Don’t just dismiss this because it has Donald’s name on it.

I swear it’s like people do not want to do anything that might help them or their kids because it helps wealthy people more.

Might as well just give up completely because wealthy people.