Treasury Secretary Scott Bessent said Wednesday that the so-called Trump accounts Republicans created for children in their tax and spending bill are a “back door for privatizing Social Security.”
In making the comments, Mr. Bessent ventured onto what many consider the third rail of politics by suggesting that the accounts could be a step toward withdrawing the government’s role in funding the safety net program for retirees, which faces a longstanding financing shortfall.
The government-sponsored accounts are designed to provide Americans with an opportunity to start building wealth as soon as they are born. Under the law, which President Trump signed on July 4, American babies born through 2028 are eligible to receive $1,000 from the federal government. Parents, family members and employers can contribute additional funds to the accounts, which must be invested in low-cost stock mutual funds or exchange-traded funds tracking a U.S. stock index.
Speaking at an event in Washington hosted by Breitbart, the right-wing news organization, Mr. Bessent described the accounts as a way to increase financial literacy and create wealth. He also appeared to call for letting the private investment accounts supplement or replace Social Security, drawing backlash from Democrats.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
