Swap “Trump Accounts” for USAs — Cato Expert
Cato Institute Director of Tax Policy Studies Adam Michel is available for interviews in light of President Trump highlighting his “Trump accounts” proposal, which would create $1000 investment accounts for American children.
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In a recent blog post, Michel wrote that the Senate should take the opportunity to swap “Trump accounts” for universal savings accounts instead:
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This new program adds yet another layer to an already fractured and overly complicated system of government subsidies for children. While the upfront cost of the $1,000 deposits is relatively small, history suggests that this will not remain a modest, temporary program… The Trump accounts are also overly restricted and needlessly complex. For most Americans, these accounts will be functionally useless except to receive and hold whatever government funds are deposited, making them less a tool for building generational wealth and more a temporary transfer program wrapped in red tape.
If lawmakers are serious about promoting saving and financial independence, they should restructure Trump accounts to work more like previous proposals for universal saving accounts (USAs.)
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Last year, Michel testified before the Senate Finance Committee at the hearing “Child Savings Accounts and Other Tax-Advantaged Accounts Benefiting American Children.” You can watch his testimony here.
If you would like to speak with Michel, please contact pr@cato.org to set up an interview.
