• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

What to know about $1,000 "Trump accounts" for newborns included in House bill

VySky

Supporting Member
DP Veteran
Joined
Sep 12, 2019
Messages
48,491
Reaction score
19,304
Gender
Male
Political Leaning
Moderate
Hopefully this is not a duplicate thread but after a brief search I see this has not been discussed.

A 1K account for all newborns. An investment in our children for the future.

What do you think?

=================================

What to know about $1,000 "Trump accounts" for newborns included in House bill​




What to know about $1,000 "Trump accounts" for newborns included in House bill

House Republican's budget bill would create $1,000 "Trump accounts" for babies born between January 2025 and January 2029.
www.cbsnews.com
 
Complicated, It is one way for conservatives to actually be pro-life. But it really depends on how or when the money could be used.

Also is this going to babies born to rich people? Why? I would say increase the amount and set a maximum earning for the parent/s.
 
A great plan for children's future and also like this part where parents or third party members could also invest each year:


"The government would contribute $1,000 to every eligible child's account, which would be invested in the stock market on their behalf. Families and third parties could also contribute up to $5,000 a year to a child's account. "


This is a great way to help them beginning their adult life with a down payment on a home or business venture or payoff school loans.
 
For all babies born on American soil? Cool!
 
daeler said:
It's only for those born of American parents.
Click to expand...
But babies born in America are Americans, right? Entitled to all the benefits of American citizenship.
Doesn't sound legal otherwise.
 
Grand Mal said:
But babies born in America are Americans, right? Entitled to all the benefits of American citizenship.
Click to expand...
Yep, but this idea put forth is only for those born to American parents with SS #s.
 
VySky said:
Hopefully this is not a duplicate thread but after a brief search I see this has not been discussed.

A 1K account for all newborns. An investment in our children for the future.

What do you think?
Click to expand...
Unnecessary and dumb.
 
daeler said:
Yep, but this idea put forth is only for those born to American parents with SS #s.
Click to expand...
"All animals are equal, but some are more equal than others." Babies born in the USA are Americans, but some are more American than others.
Sounds, uh, provocative.
But provocation seems to be becoming a theme in this administration.
 
VySky said:
A 1K account for all newborns. An investment in our children for the future.
Click to expand...

Hmm, massive cuts to SNAP, WIC, Medicaid, education, and biomedical research while adding trillions to the debt vs. a measly $1,000.

On net, massive disinvestment in our children.
 
redbeer said:
This is a great way to help them beginning their adult life with a down payment on a home or business venture or payoff school loans.
Click to expand...

Watching Boomers try to guess how much things cost today (even before projecting forward 20-odd years to when these unborn kids are paying for such things) is like watching Rain Man guess the price of a candy bar.
 
Greenbeard said:
Watching Boomers try to guess how much things cost today (even before projecting forward 20-odd years to when these unborn kids are paying for such things) is like watching Rain Man guess the price of a candy bar.
Click to expand...

Apparently the reality of tax deferred monies growing through compounded interest escapes you. It would be interesting to know if they set an age limit on these accounts or not for the magic really begins between 30 to 40 years.
 
BirdinHand said:
Symbolic at best.

And the big beautiful bill is unlikely to even get through the senate.
Click to expand...

A modest initial investment at a 7% annual return could grow to over $15,000 in 18 years through compounding, assuming no additional contributions. This could provide a meaningful nest egg for young adults.

Unlike direct welfare programs, the accounts leverage market growth rather than ongoing taxpayer funding, making it a potentially sustainable model for long-term wealth creation.

The Trump account is a powerful initiative and a potential game-changer.
 
redbeer said:
Apparently the reality of tax deferred monies growing through compounded interest escapes you. It would be interesting to know if they set an age limit on these accounts or not for the magic really begins between 30 to 40 years.
Click to expand...

A lot of parents are bad with their finances, so this amazing Trump account gives young children at birth the ability to participate in the market.
 
Not a fan...but if they are going to consider something like this they should do it right. 5k at an expected compounded growth rate of 10% would be worth 2.545 million in 65 years, assuming no additional funds were added into the account at current rates. So...replace Social Security with an up front investment account that the individual couldnt touch (except to add to) and eventually cancel Socials Security...or rather let it die its own death...which it will likely do anyway.
 
Bucky said:
A lot of parents are bad with their finances, so this amazing Trump account gives young children at birth the ability to participate in the market.
Click to expand...

Yes, and having an account set up for the parents children would create great incentive for them to invest in their child's future. By not having to start it, will cause many to begin to invest and down the road will create an atmosphere of less younger people having to fall onto the cycle of government dependence. It's a brilliant move.
 
Good God, what a narcissistic parasite Trump is attaching his name to this policy.
 

On the surface it looks like a good idea. I'm concerned where the money would be invested. Is Trump going to direct the money into his own or his friend's holdings? Would it go into DJT or his crypto venture?

He was vague yesterday when asked about it.
 
Bucky said:
A modest initial investment at a 7% annual return could grow to over $15,000 in 18 years through compounding, assuming no additional contributions. This could provide a meaningful nest egg for young adults.
Click to expand...
$15,000?
Do you know how easy it is to Google 'compound interest calculator?
 

It's not a tax shelter, though, so, there is only downside to using this account vice a regular brokerage.

The only upside is the "free" (paid for with increased debt) $1000, which, at a 7.5% inflation-adjusted combined annual growth rate, would come to $3,676 by age 18.

3.6 million kids born each year = 36 Bn over a decade, which isn't much, comparatively, but it's still a new entitlement, and so, will only expand.

Which, given that it's cribbing off of a Hillary Clinton idea, perhaps shouldn't be surprising.

Plus, the requirement for both parents to have a social security number seems to make it vulnerable to legal challenges.

I am all in favor of long term savings, but this seems like an unpaid-for gimmick with the potential to turn into an unpaid-for monster. This needs to be structured better, and replace other programs.
 
You must log in or register to reply here.
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more…