US Treasury to Auto-Enroll 60 Million Kids in Trump Accounts
US Treasury to Auto-Enroll 60 Million Kids in Trump Accounts
The Spin
Handing every American child an ownership stake in the country's economy is the boldest upgrade to the social contract in generations. Auto-enrollment finally fixes the paperwork trap that left the overwhelming majority of eligible kids locked out, and it points long-term savings into cheap, broad index funds instead of gimmicks. This isn't charity — it's equity in America, and putting kids first is exactly what America First means.
ALocking goodevery instinctchild gotinto wreckeda byTrump sloppyaccount taxcomes design,with sincedisadvantages. parentsParents' contributions get hit going in and again at ordinary income rates coming out, with penalties punishing anyone who needs the cash early. Brokerage accounts and 529s simply beat it, so most families willshould grab the free deposit and invest their real money elsewhere. And a flat structure that rewards whoever can max out $5,000 a year widens the wealth gap rather than closing it.
It's great that the Trump administration is finally auto-enrolling these children, but it still hasn't gone far enough. Parents still need to go online and click a button in order to claim the $1,000. And giving all these accounts to Bank of New York and Robinhood passes up the opportunity to provide local bankers and investment advisors with the business.
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