“In a way, it’s a backdoor way to privatize Social Security,” Treasury Secretary Scott Bescent said of a new $1,000 account for newborns that passed President Trump’s “big beautiful bill.”
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WASHINGTON – Treasury Secretary Scott Bescent has touted a new American baby savings account in President Donald Trump’s recently approved megaville as “a backdoor to privatize Social Security.”
Speaking on July 30 at a policy event hosted by Breitbart, Bessent welcomed the so-called “Trump account” of American newborns who passed Trump’s “big beautiful bill” as an innovative way to help more Americans join the financial system, increase financial literacy and build retirement savings.
Under this program, American children born this year until 2028 are eligible for a one-time donation of $1,000 to mutual funds or index funds related to stock market performance from the federal government per toddler.
“In a way, it’s a backdoor way to privatize Social Security,” Bescent said. “Social Security is a game changer if these accounts suddenly grow and grow in hundreds of thousands of dollars to retire.”
Trump’s Megaville — the president signed the law after the president cleared Congress with Republican support solely — is among new policies that include the “Trump Account” that extends tax cuts in 2017, ends tip taxes, allocates billions in border wall funding, and Medicaid and food stamp benefits.
The new law did not change the social security that the president has vowed to protect.
Democrats have long denounced Republicans for the privatization of Social Security, a new trading-era welfare program that offers benefits to seniors with disabilities and Americans.
In 2005, President George W. Bush proposed a plan to allow Americans to invest a portion of their Social Security Tax payments into the stock market, but the overhaul failed to gain traction in Congress.
The Trump Baby account is expected to be available in July next year. Parents can also contribute up to $5,000 a year to their tax deferred accounts to invest in a variety of funds that track US inventory indexes. Qualified withdrawals including education expenses, qualifications, qualifications, down payments in your first home, or down payments as capital to start a small business are taxed at long-term capital rates.
As long as the child is a US citizen and both parents have a Social Security number, there is no income requirement and everyone is eligible. Money from the “Trump Account” cannot be withdrawn until the beneficiary is 18 years old.
Bessent recently spoke about his discussion with construction workers at a gas station where he has won a $20 lottery ticket.
“I was sitting there – and I tell them – the best thing you can do is save that $20. Now with these (trump) accounts, they can become part of the system.” “If they put that money into S&P or Bitcoin, we’re making people part of the system. We’re increasing financial literacy.”
Reach Joey Garrison with X @joeygarrison.
