Trump Launches Tax-Deferred Accounts for Newborns, Pitching 2.6% U.S. Savings Rate Fix
Updated
Updated · Fox News · Jul 13
Trump Launches Tax-Deferred Accounts for Newborns, Pitching 2.6% U.S. Savings Rate Fix
3 articles · Updated · Fox News · Jul 13
Summary
From the Oval Office, Donald Trump marked the launch of tax-deferred “Trump Accounts” for newborns by ringing the NYSE and NASDAQ opening bells, framing the program as a way to widen investment ownership early in life.
The push is tied to a broader retirement-policy rethink after Trump said last week he was studying Australia’s system, which uses portable worker-owned accounts and automatic employer contributions to build long-term savings.
The report argues the U.S. system no longer fits a workforce with fewer pensions, frequent job changes and many freelancers, while the national savings rate sits at 2.6% and Social Security faces long-term strain.
A U.S. version would likely avoid an immediate Australian-style 12% employer mandate, instead phasing in contributions, offering small-business tax credits and linking the new newborn accounts to later retirement saving.
If enacted, the approach would shift retirement policy toward private asset ownership rather than heavier reliance on government benefits, potentially becoming the biggest change since Social Security in 1935.