"“Here's the dirty little secret: Trump accounts are Social Security personal accounts,” he said. For 50 years, he added, U.S. conservatives have been trying to mimic Australia's superannuation program, which requires employers to pay into an employee's investment fund to be accessed upon retirement as a way to reduce reliance on public pensions. Cruz described a U.S. version as Social Security personal accounts."
"“How did we get it done this time? Because we gave the money to babies and so the old people didn't get pissed,” Cruz said. Retirees and soon-to-be retirees have long been a potent voting bloc that instill fear in lawmakers, especially those contemplating any adjustments to Social Security and Medicare."
"“The White House has estimated that fully funded Trump accounts could eventually grow to as much as $1.9 million by the time a child turns 28.” Cruz said that as parents see their kids' Trump accounts surge, they will become more open to changing how their own payroll taxes are spent."
"Last year's One Big Beautiful Bill Act created allowed parents and other authorized individuals to open tax-advantaged savings accounts for any child under 18 with a Social Security number. During a panel discussion at the Milken Institute's Global Summit on Monday, Cruz pointed out he wrote that part of the legislation, noting that half of Americans don't own stocks and can't benefit from decades of compounding growth."
A proposal creates tax-advantaged savings accounts for children under 18 with Social Security numbers. The accounts are framed as a U.S. version of Australia’s superannuation model, where employer contributions build retirement investment funds. The accounts are described as personal Social Security accounts that could reduce reliance on public pensions. The political strategy is to avoid backlash from retirees by directing new money toward children first. Fully funded accounts are projected to grow substantially by early adulthood. As parents see account growth, they may become more willing to support changes to how payroll taxes are allocated, potentially redirecting part of those payments away from the federal system.
#social-security #private-retirement-accounts #tax-advantaged-savings #political-strategy #superannuation
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