WASHINGTON DC: US President Donald Trump on Wednesday unveiled a new federal initiative called "Trump Accounts," saying the programme would provide every newborn American child with a government-funded investment account to give families a financial head start from birth.
Speaking at the Treasury Department's Trump Accounts Summit, Trump said the initiative would "give every newborn American child a financial stake in the future," calling it a way to ensure that children begin life with assets rather than debt.
Under the programme, the US government will automatically create a tax-free investment account for each child born in the country. The account will be seeded with a $1,000 contribution at birth, Trump said, with additional contributions allowed from parents, employers, states, and other donors.
The President said families and supporters would be able to add up to $5,000 annually to each account. With modest contributions, he said, the accounts could reach at least $50,000 by the time a child turns 18, and potentially far more. "The typical account will grow to 100,000, 200,000, and can even grow up to past $300,000 per child," he said.
Calling the initiative unprecedented in scale, Trump said the programme would ultimately place trillions of dollars in the hands of young Americans over the next decade. "Over the next 15 years, we're going to put 3 to $4 trillion of wealth into the hands of young Americans who otherwise would have really started with nothing," he said. (IANS)
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