First, they were called “MAGA accounts.” Now, they’re “Trump accounts.”
As part of their “One Big Beautiful Bill,” Republicans on Capitol Hill want to establish new investment accounts for American children. Under the plan, babies born after January 31, 2024 and before January 1, 2029 — essentially, the last three years of President Donald Trump’s term — will receive $1,000 for the account from the federal government.
The original name was an acronym for “Money Account for Growth and Advancement” — the same initials as Trump’s political movement. In a last-minute change before the House passed their version of the “Big Beautiful Bill” on Thursday, “MAGA” was replaced with “Trump.”
While the president stands to get the credit, it was Sen. Ted Cruz’s idea to create “Invest America” accounts. The Texas Republican says he doesn’t mind.
“What I care is that they remain in there,” Cruz told BI, referring to the provision’s inclusion in the larger bill. “I think it doesn’t matter what they’re called. What it matters is what they do.”
In terms of political branding, it’s further than other recent presidents have gone. President Joe Biden, for instance, chose not to sign COVID-19 stimulus checks like Trump did — though he later said it was “stupid” not to do so.
Other government-backed programs have taken on the name of their creators. The Affordable Care Act, championed by President Barack Obama, is commonly known as “Obamacare,” though that was initially a Republican epithet. And Sens. William Roth and Claiborne Pell have also found their names written into the tax code.
“That is not unusual,” Cruz said. “You have things like Roth IRAs that were named after Senator Roth. You have things like Pell Grants that were named after Senator Pell. You have things like Obamacare that were named after President Obama.”
It’s unclear exactly why the accounts were named after Trump, and the White House did not respond to a request for comment.
Cruz had pitched the idea as a way to give kids a stake in the free market from an early age, allowing them to potentially reap financial benefits down the line while making them less likely to support socialism.
“It enables every newborn child in America to experience the enormous benefits of compounded growth, and to accumulate significant resources with the passage of time,” Cruz said. “It creates a generation of new capitalists.”
According to the bill, individuals with “Trump accounts” will be able to use the savings for things like higher education and first-time home purchases starting at age 18.
Money taken out of the account for those purposes will be taxed as long-term capital gains, while money withdrawn for other purposes is taxed as regular income.
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