If you haven’t heard of Trump accounts before now, perk up and listen because they’re the centerpiece of his midterm message, and they are meant to replace Social Security. Oh, not now, not today. But he wants to take your baby’s Social Security away with a tiny corporate-funded $1,000 bribe.
Here’s how they work: For babies born between 2025 and 2028, a so-called “Trump Account” will be opened for them with $1,000 seed money from the likes of Michael Dell and other corporate barons. New parents, flush with money, can then contribute up to $5,000 a year to them until those kids are 18. These contributions are not tax-deductible and all funds are placed into stock market fund investments. They grow tax-free, and are converted to traditional IRAs at age 18. Withdrawals are subject to a 10% tax if withdrawn for anything other than the exceptions spelled out in the law.
Investments are required to be in index funds that move with the S&P 500. So Wall Street is really happy!!!
Of course those new parents will have all kinds of money to shove into an account! Never mind the diapers, wipes, formula, food. Those babies don’t need to eat; they need to be “entrepreneurs” just like Orange Jesus said when he was ringing the bell for the New York Stock Exchange Monday morning.