The GOP Wants to Auto-Enroll Your Child in a 'Trump Savings Account' [View all]

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The GOP Wants to Auto-Enroll Your Child in a 'Trump Savings Account'
https://www.kiplinger.com/taxes/gop-proposes-maga-savings-accounts

Introduced in the “One Big Beautiful Bill Act” (OBBA), so-called Trump accounts would allow parents, relatives, and others to contribute $5,000 annually for a child’s future educational, homeownership, and entrepreneurial expenses.

The federal government would seed this tax-advantaged account with $1,000.

The savings would grow “exempt from taxation” (more on that below) until the child reaches 18. By then, there could be tens of thousands of invested dollars for your child’s use.

Sen. Ted Cruz (R-Texas), who proposed the savings account initiative, told Semafor, “There are many Americans who don’t own stocks or bonds, are not invested in the market, and may not feel particularly invested in the American free enterprise system. [Trump accounts] will give everyone a stake.”

If the savings account idea sounds familiar, that’s because it is. Democrats have proposed so-called "baby bonds" in the past, which would also offer $1,000 seed money to eligible children, but failed to gain bipartisan support.

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