Bill would give newborns 1,000 US dollars to “Trump accounts”

When the Republicans convicted a proposal for the first time last week to invest 1,000 US dollars for every American baby that was born in the next four years, they were not exactly subtle about who the public should credit for the money.

The original draft demanded that the funds bring in a new “money account for growth and progress”, or, as the legislation suggested, to become a “Maga account”.

Apparently, however, it was not clear enough to spend the accounts with the name of President Trump's political movement. As part of a number of changes at the last minute, they decided on Wednesday evening the Republicans of the Republicans to their broad financial package to only cut the chase. The money would now be stored in a “Trump account”.

According to the law, children who were born between January 1, 2025 and January 1, 2029 would receive the money that is invested in their name in the financial markets. As soon as they grew up, they could withdraw the proceeds to pay certain expenses, including the College visit or the purchase of a house. The child's parents or other third parties could also contribute to the account.

While the advantage of the first investment of 1,000 US dollars is clear, the accounts otherwise confused tax experts. People were only able to contribute income to the accounts after taxes, and the profits on the accounts would also be taxed if money was withdrawn. The “Trump account” seems to do that similarly to a typical investment account, instead of a tax account such as an individual pension account or a health savings account.