Why Trump Accounts, as Currently Planned, Risk Leaving Out Many Children
The New York Times••business
Key Points:
- Michael and Susan Dell announced a $6.25 billion philanthropic gift to create investment accounts for children, aiming to help them benefit from compounding returns as adults.
- The Trump accounts, established in this year’s tax bill, provide $1,000 for babies born during President Trump’s second term and $250 for most other children under 10, with funds invested in index funds for future use in education, home buying, business, or retirement.
- Although the concept of government-funded children’s investment accounts has bipartisan support and evidence of reducing wealth gaps, the current policy risks excluding many children who would benefit most.
- Studies show these accounts can shrink wealth inequality, particularly for Black and Hispanic children, as stock ownership is disproportionately higher
