Bessent hails new 'Trump accounts' as 'backdoor way to privatize Social Security'

[BumRushDaShow]

Source: Politico

07/30/2025 02:48 PM EDT


Treasury Secretary Scott Bessent on Wednesday framed the president’s new “Trump accounts” as a transformative tool for long-term wealth building and a “backdoor for privatizing Social Security.” Bessent said the new tax-deferred investment accounts, which were created by President Donald Trump’s sweeping tax law earlier this month, could be a way to boost financial literacy and young voters’ engagement in the economy.

“Why are we on the verge of Caracas on the Hudson in New York?” Bessent asked an audience at a Brietbart event in Washington, referencing the rise of democratic socialist Zohran Mamdani in New York City’s mayoral race. “Why is this guy getting traction? Because young people are disillusioned with the system.” Trump accounts, Bessent said, would make “everyone a shareholder” in the success of the economy. “People who are part of the system do not want to bring down the system,” Bessent said.

The accounts, originally named MAGA accounts, allow parents to contribute up to $5,000 each year on behalf of their children. Contributions can also come from employers and charitable organizations. The funds must be invested in portfolios tied to U.S. stock indexes and are structured similarly to individual retirement accounts, with penalty-free withdrawals permitted after age 59 and a half or earlier for college expenses or a first home purchase.

Trump’s law also provides a universal contribution from the government of $1,000 for each baby born during 2025 through 2028, regardless of their family income. “In a way, it is a backdoor for privatizing Social Security,” Bessent said at the Breitbart event.

Read more: https://www.politico.com/news/2025/07/30/bessent-trump-accounts-backdoor-privatize-social-security-00484859