While the White House has been keen to push the scheme, reaction to it has been split.<\/p>\n
The White House’s argument is that Trump Accounts offer millions of children a way into stock ownership in the US, which it says has historically been “unevenly distributed, with many households – especially younger and lower\u2011income families – having little or no exposure”.<\/p>\n
However, Will McBride, chief economist at the Tax Foundation think tank, says the scheme is too complicated to sign up to, which will lead, in his view to a “minority that benefits”.<\/p>\n
He suggests those that will take advantage will be the parents of children who are “relatively well-informed, relatively well-off, relatively tuned in [and] have their act together”.<\/p>\n
However, Andy Blocker, head of policy, regulatory and government relations at financial services firm Edward Jones, believes the $1,000 contribution for babies born during Trump’s second term in office will remove a “barrier of having nothing to start with”.<\/p>\n
“If by year-end more families have a clear on-ramp to begin saving and investing for their children’s financial futures, that’s success,” he suggests.<\/p>\n
Adam Michel, director of tax policy studies at the Cato Institute, says the idea of the scheme is admirable, but warns it might “not live up to the rhetoric”.<\/p>\n
He says the main benefit is the $1,000 starting subsidy but suggests many families would be better off using existing savings accounts.<\/p>\n
He also points out barriers such as penalties for early withdrawal, as seen for other savings accounts, adding that lower-income children may feel compelled to take the money out when they turn 18 to “help make ends meet”, and therefore have to pay a penalty. “Trump Accounts do not fix that problem.”<\/p>\n","protected":false},"excerpt":{"rendered":"While the White House has been keen to push the scheme, reaction to it has been split. The…\n","protected":false},"author":2,"featured_media":685826,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-685825","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/685825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=685825"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/685825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/685826"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=685825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=685825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=685825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}