Trump Accounts | Savings & the OBBBA
Last year’s One Big Beautiful Bill Act (OBBBA) has been the most consequential piece of economic legislation of President Trump’s second term in office. Among its myriad changes to the taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. code, one of the most discussed—and misunderstood—features was the creation of “Trump Accounts,” tax vehicles designed to help spur savings for people upon birth.
The Treasury Department has been busy releasing guidelines for how Trump Accounts work. Though the idea of starting a savings account for your child before even leaving the delivery room may seem appealing to taxpayers, these regulations paint a different picture.
How we support savings in the US is too complex, and Trump Accounts worsen the problem. If lawmakers truly want to increase savings for taxpayers from day one, they should look to the UK and Canada, which have done it successfully for many years.
This is a preview of our full op-ed originally published in MarketWatch.
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