logo
Even Democrats Might Like MAGA Accounts

Even Democrats Might Like MAGA Accounts

Bloomberg15-05-2025

One of the more remarkable aspects of the MAGA ideology is how often it fulfills the left-wing policy wish list. The latest example is a proposal for so-called MAGA accounts, which House Republicans are currently considering as part of their $4 trillion tax bill.
Under the plan, every baby born between 2025 and 2029 will get $1,000 from the government in a MAGA account (it stands for Money Account for Growth and Advancement). The general idea was popularized by Democratic Senator Cory Booker in 2018, when they were called 'baby bonds.' With the crushing cost of education and housing, not to mention wealth inequality, it is easy to see the appeal —which explains the bipartisan support.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Democrat-controlled budget office wrongly analyzed Trump's big bill, missed record savings, White House says
Democrat-controlled budget office wrongly analyzed Trump's big bill, missed record savings, White House says

Yahoo

time30 minutes ago

  • Yahoo

Democrat-controlled budget office wrongly analyzed Trump's big bill, missed record savings, White House says

The White House is challenging the nonpartisan Congressional Budget Office's assessment that President Donald Trump's sweeping tax and spending package will raise the federal deficit by trillions of dollars throughout the next decade. The national debt, currently $36.2 trillion, tracks what the U.S. owes its creditors, while the national deficit measures how much the federal government's spending exceeds its revenues. So far, the federal government has spent more than $1 trillion more than it has collected this fiscal year, according to the Department of the Treasury. The Congressional Budget Office (CBO) issued an analysis Wednesday predicting that the so-called "big, beautiful, bill" the House passed in May would increase the federal deficit by $2.4 trillion over the next 10 years. But according to the White House, the CBO's analysis is based on a faulty premise because it assumes that Republicans in Congress will fail to extend Trump's 2017 tax cuts. Rather, the White House's Office of Management and Budget (OMB) forecasts that the tax and spending measures would independently reduce deficits by $1.4 trillion. Senate Weighs Trump's 'Big, Beautiful, Bill' As Policy Group Backs Cbo, Projects $3 Trillion Debt Increase Read On The Fox News App Additionally, the White House argues that the measure, coupled with other initiatives like tariffs and other spending cuts, will lead to reducing the deficit by at least $6.6 trillion over 10 years. The "big, beautiful, bill" has faced criticism from figures including SpaceX and Tesla CEO Elon Musk, who labeled the measure an "abomination" and argued that the bill would increase the federal deficit. The measure now heads to the Senate, where lawmakers, including Sen. Rand Paul, R-K.Y., have voiced opposition to the legislation. Trump's 'Big, Beautiful Bill' Faces Resistance From Republican Senators Over Debt Fears Meanwhile, OMB Director Russell Vought told lawmakers on the House Appropriations Committee Wednesday that he believed the CBO's analysis was "fundamentally wrong." "It will lead to reduced deficits and debt of $1.4 trillion," Vought said. "It will reduce mandatory savings of $1.7 trillion. I don't think the way they construct their baseline, not only does it not give a fair shake to economic growth, but it fundamentally misreads the economic consequences of not extending the current tax relief." Failure to pass Trump's tax package would trigger a recession, according to Vought. "We'll have a recession," Vought told lawmakers. "The economic storm clouds will be very dark. I think we'll have a 60% tax increase on the American people." Meanwhile, the White House has accused the CBO of employing those who've contributed to Democratic campaigns, even though CBO Director Phillip Swagel served in former President George W. Bush's administration. Price Tag Estimate For House Gop Tax Package Rises To $3.94T "I don't think many people know this: There hasn't been a single staffer in the entire Congressional Budget Office that has contributed to a Republican since the year 2000," Leavitt told reporters Tuesday. "But guess what, there have been many staffers within the Congressional Budget Office who have contributed to Democratic candidates and politicians every single cycle since. So unfortunately, this is an institution in our country that has become partisan and political." The CBO director is appointed according to the recommendations of the House and Senate Budget Committees. Then-Sen. Mike Enzi, R-Wyoming, first recommended Swagel in 2019, and then Rep. Jodey Arrington, R-Texas, recommended Swagel again in 2023. The CBO did not immediately respond to a request for comment from Fox News Digital on OMB's analysis or claims from the White House about the office being full of staffers who've backed Democrats. Fox News' Deirdre Heavey contributed to this report. Original article source: Democrat-controlled budget office wrongly analyzed Trump's big bill, missed record savings, White House says

Idaho senators should protect school choice in ‘Big Beautiful Bill'
Idaho senators should protect school choice in ‘Big Beautiful Bill'

Yahoo

time30 minutes ago

  • Yahoo

Idaho senators should protect school choice in ‘Big Beautiful Bill'

President Donald Trump's 'One Big Beautiful Bill' is now moving through the U.S. Senate, and conservative Christians are thrilled with many of the provisions that have been included so far. Although we don't yet know how the Senate version of the bill will shake out, it's worth noting that the version passed by the House late last month fulfills many of the pro-family policies made by the Trump administration. These include an expansion to the child tax credit for working families, tax benefits for adoptive parents and making permanent the Trump personal income and business tax cuts that fueled the above-average economic growth America experienced before the pandemic derailed international markets. However, one provision in particular that would improve educational access and outcomes for all students has flown under the radar so far. The provision would help more than one million students across the country access the educational support they need by creating special tax benefits for private donations to scholarship-granting organizations. It is modeled after the Educational Choice for Children Act, a federal proposal that has been introduced multiple times over the past several years and has earned the support of Sen. Jim Risch, R-Idaho, as well as other conservative stalwarts like Sen. Josh Hawley, R-Missouri, and Sen. Tim Scott, R-South Carolina. Scholarship-granting organizations already exist in many states, providing scholarships directly to students for tuition, tutoring, special needs services, education technology and curriculum materials. The provision offers both a supplement and alternative for students in states like Idaho, which has already begun moving down the road to more universal school choice programs by offering a new $5,000 refundable tax credit paid directly to the private school and homeschool families. Some parents — particularly within the homeschooling community — have voiced concerns that new school choice initiatives, such as Idaho's refundable tax credit, might jeopardize their educational freedom. After all, government money usually comes with strings attached. When you take the government cheese, you have to step into the regulatory mousetrap. And even if those restrictions aren't imposed right away, the door remains open for future state and federal mandates. Importantly, the ECCA provision in the One Big Beautiful Bill addresses these concerns by making sure no government funds go to the organizations, schools, or families involved — thereby avoiding another opportunity for government regulation. Instead, the ECCA establishes tax incentives for private donations to scholarship-granting organizations, which then award scholarships directly to students. Because this is private money — not government dollars — families can freely choose the best educational options for their children without government interference. All of this explains why the ECCA is supported by homeschool freedom advocates, including the Home School Legal Defense Association. In fact, the ECCA model helps ensure that parents remain in control of their children's education, consistent with biblical principles like Ephesians 6:4, which commands fathers to bring up their children in the discipline and instruction of the Lord. Not only would the ECCA provision in the 'One Big Beautiful Bill' help parents fulfill this biblical responsibility, but it would also expand educational opportunities for children currently stuck in failing public schools, no matter the state in which they live. Nationwide school choice which empowers parents while also protecting educational freedom is a high priority for Trump — and it should be just as high a priority for our legislative branch as they set education policy. With that in mind, we call on the U.S. Senate to keep the ECCA provision in whichever version of the 'One Big Beautiful Bill' they adopt. Our children — and their families — deserve it. Blaine Conzatti is the president of Idaho Family Policy Center.

How Trump's big bill could affect your taxes
How Trump's big bill could affect your taxes

Yahoo

time40 minutes ago

  • Yahoo

How Trump's big bill could affect your taxes

President Trump's bill to cut taxes and spending centers on an extension of his previous round of tax cuts, which Republicans slated for expiration at the end of this year back in 2017. As such, it will preserve the status quo on many big parts of the code so that taxpayers won't see any change in things like the amount of money the government takes out of their paychecks. Other tax cuts in the legislation now moving through Congress will be brand new, though most of the new additions are scheduled to end after a few years. Here's a look at some of the big-ticket items in the latest round of GOP tax cuts. Trump's 2017 tax law cut many individual income tax rates, and those would continue into the future through the current legislation. Under current law and moving up the income spectrum, marginal rates are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The new GOP law will lock those rates in place. The extension of those rates will reduce federal revenues by $2.2 trillion through 2034, according to the Joint Committee on Taxation (JCT). If they were allowed to lapse, rates would change to 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent, and 39.6 percent. Only the 10-percent and 35-percent rates were left alone by the 2017 tax cuts. Trump in recent weeks floated letting the top rate go back to 39.6 percent from 37 percent as a way to lower the $3.8 trillion cost of the bill's tax portion, but he has since backed away from that idea. The law preserves — and temporarily boosts — the higher standard deduction, which was nearly doubled back in 2017. The new boost is $1,000 for individuals and $2,000 for couples filing jointly and will last for four years. This is paired with getting rid of personal exemptions, making tax filing simpler for many taxpayers. In 2024, the standard deduction was $14,600 for individuals and $29,200 for married couples. The higher standard deduction is projected to reduce revenues by $1.3 trillion through 2034. The loss of personal exemptions will add $1.9 trillion to federal revenues, resulting in a net revenue gain between the two measures. The bill creates a temporary full deduction for tips and overtime pay, allowing taxpayers to avoid paying taxes on those types of compensation. Taken together, the tax breaks will reduce revenues by about $164 billion through 2028 when they expire. People who work in the restaurant industry say they're concerned that the tax break will motivate customers to pay fewer gratuities, since tipping is left to the discretion of individual shoppers and diners as opposed to being a component of the employer-paid wage. 'I'm afraid that people are going to want to tip less with that income not being taxed,' one New York City bartender, who asked not to be named, told The Hill. The person also expressed concern that the no-tips rule could add to tensions in his restaurant between the front-of-house staff, who work for tips, and the kitchen staff, who do not. 'In the industry, the bigger concern is, why would the front-of-house not pay taxes when the back-of-house will still be paying taxes because they don't get tips?' the person said. Tax experts told The Hill the measures could add to the amount of paperwork that tax filers — both employers and employees — need to fill out, depending on how the IRS interprets the law and modifies its regulations and forms. The law gives an additional $4,000 tax break to seniors below a certain income threshold, which would be added to the $15,000 standard deduction and an already existing $2,000 deduction for seniors. Trump promised while campaigning to remove taxes on Social Security, which is funded through a payroll tax and then taxed again, above an income threshold, upon disbursal to bolster the Social Security fund along with Medicare. The enhanced deduction for seniors is a close substitute for the Social Security tax cancellation promised by Trump but is technically a different tax. According to congressional rules, the Social Social program cannot be altered through budget reconciliation, which is the legislative workaround Republicans are using to allow a party-line vote on their bill and avoid a Democratic filibuster in the Senate. Republicans haven't agreed on the most controversial provision of their tax bill — the state and local tax (SALT) deduction cap — but they're getting close. The initial proposal from the Ways and Means Committee raised the cap to $30,000, but members of the SALT caucus shot it down. Another proposal floated late Tuesday would bump the SALT deduction cap up to $40,000 — four times the current $10,000 cap — for people making $500,000 or less in income, three sources told The Hill. That level would increase by 1 percent a year over 10 years, according to one of the sources. Whatever they agree to, it will be expensive. Various estimates from the JCT put the cost of canceling the cap — which is a top priority for many blue-state Republicans — at around $1 trillion over 10 years. The SALT cap interacts with different parts of the tax code, including the higher standard deduction and the extended effective repeal of the alternative minimum tax (AMT), which costs more than $1.4 trillion in revenues. 'Even if you live in a place like New York, the combination of repealing the AMT and the $10,000 SALT cap was actually still positive for you. You were better off with the SALT cap because you lost the AMT than you would have been if the law hadn't happened at all,' Tax Policy Center senior fellow Howard Gleckman told The Hill. 'It was actually a good deal for people,' Gleckman said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store