What Is A MAGA Account? Trump’s Baby Bonus Might Be a New Entitlement
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I’ve been thinking, you see that smoke coming out my ears? I’ve been giving this MAGA account thing a lot of thought. What is a MAGA account? Basically, I’m call it a tax preferred savings account for children. What it would be is the, we the people, we the people, the taxpayer, I like how they phrase it, the treasury will seed accounts with a thousand dollars.
No, no, we the people the United States of America, the taxpayers here are going to give a call it a baby shower gift to every child born in the country. I goes right now I think this thing is set up for 2025 to 2020. I don’t know when it expires yet. They’re tinkering with it at this point in time. Families.
families could add $5,000 to this account a year. The funds will grow tax deferred, tax deferred when you take them out. You can take the money out at 18 years old if you want to use it for college or buy a house, but you have to pay capital gains taxes on that. If you take it out, it’s not
you know, not those things, they’re going to end up adding to it. They’re going to find carve outs and other things using money for you have to pay a 10 % penalty and the capital gains tax. The account expires. It is you know, you have to take the money out when you’re 30 years old. That’s how it stands right now. Okay. Yeah, our fearless leaders are still you know, packing the sausage right now in Washington DC. Yeah, they’re the sausage factory is in. It’s going at full speed ahead at this point in time.
The Joint Committee on Taxation estimates that these accounts are gonna cost $17.3 billion over 10 years. Okay. Okay. Again, my concern. I don’t think it is a horrible idea. I don’t. Again, I’m.
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in the business compounding as the royal road to riches you get kids putting money away as early as possible it is a great thing it’s a great thing the parent in this case the parent in this case is going to be the trustee for the account meaning that the they wanted to bad parents they could you know take the money out
take the money out in a couple days if they wanted to and use it as they wish. Again, it is what it is. There’s no way you’re gonna, I can’t think of any mechanism where you’re gonna be able to police parents that are going to use this thing for whatever nefarious reasons. And I’m sorry, that exists. right, I’ve got friends, I’ve got clients.
that are in the education business and they have to actually go to people’s homes, homes to grab kids to bring them to school. So yeah, yeah, yeah, there’s a lot of weak ass parents out there. Let’s just leave it at that. The other thing that really concerns me about this is in essence, we’ve just crash bang boom, we just created another entitlement.
We just created another entitlement. Now, what do politicians do with entitlements?
They use them. They use them to get themselves reelected. Wow. You can’t picture. You can’t picture. They passed this through. I’m gonna set the scene here for you. You can’t picture AOC running for president.
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AOC running for president and her standing up there on a podium and saying that the $1,000 quite frankly isn’t enough. We need to deposit more money into the accounts, more money into the accounts of minorities, disenfranchised people out there. They could use this.
as a vehicle for reparations. Oh, you don’t see that? Oh, I do. I’m just giving you one example. Yeah, you’re to have another politician. Yeah, we don’t even put the reparations, disenfranchised vote, whatever they want to throw in there. You can just say, hey, we’re going to give you more money. We’re going to give you more money. And this is our mechanism to do this. Vote for me. Vote for me.
If you’re planning on having a kid for, if you’re gonna have your young families out there, we’re gonna, not $1,000, $5,000.
Again, I might not pass, might not get it through, but that’s, you know, as well as I do, that’s what it’s gonna be used for. So, do I have my reservations about this? Yeah, cause been around the block a few times. I know how these elephants and donkeys operate. Watchdog on wallstreet.com.
