Latest news with #DaraKhosrowshahi
The Hill
2 hours ago
- Business
- The Hill
Trump's $1,000-per-baby investment accounts: What to know
President Trump has lauded the House-approved spending bill for the 'pro-family initiative' tucked inside the legislation, which creates investment accounts for newborn babies. 'They'll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economy,' Trump said at a Monday event at the White House that touted the accounts. The 'Big, Beautiful Bill' lays out rules for the Trump accounts. To qualify, a child must be a U.S. citizen, born within the next four years to at least one parent with a Social Security number. The money could be withdrawn starting at age 18. Here's what you need to know about the proposed federal program: Under the current bill text, the program would be available to families of all income levels, with babies born after Dec. 31, 2024, and before Jan. 1, 2029. A one-time $1,000 contribution would be provided by the Treasury Department and deposited into a diversified U.S. stock index fund or its equivalent. Families, guardians and private entities will be able to contribute no more than $5,000 per year to the account. An estimated 7 percent return on the $1,000 would compound to roughly $3,570 over 18 years, according to the Associated Press. The legislation does not provide a limit on the amount of money a nonprofit or company can donate to a child's investment account within the $5,000 annual contribution limit. Several businesses, including Uber, Dell, Goldman Sachs and Altimeter have committed to setting aside billions to invest in the accounts of company employees who become new parents. 'It's not just an account; it's a launchpad. It puts the unstoppable engine of compounding to work for our kids, building a future for them from day one,' Uber CEO Dara Khosrowshahi said about the initiative during a White House roundtable. Children enrolled in the investment program are eligible to withdraw half of the cash value amount between their 18th and 25th birthdays, according to CNN. Families and beneficiaries would pay a penalty for early withdrawal as there is no allowance for emergency use of the funds, the outlet reported. Funds withdrawn for anything other than 'qualified expenses,' including paying for higher education, buying a residence or starting a business, will be taxed. Researchers have said the investment accounts could widen America's wealth gap. 'Under the current proposal, every child starts with the same amount, and families can contribute up to $5,000 annually,' the Urban Institute, a think-tank focused on social policy, wrote in a late May report. 'But relatively few households hold substantial liquid wealth in the United States, meaning higher-income households are far more likely than their lower-income counterparts to have the means to contribute additional funds,' it continued. The study noted that Trump accounts are likely to only benefit those who have already maxed out existing tax-preferred savings opportunities, like 529 accounts. Instead, they suggested low income families with job insecurity are more likely to gravitate towards investing in traditional accounts that offer flexible guidelines. Trump's 'One Big, Beautiful Bill' still needs approval from the upper chamber. Senators considering potential changes or cuts to the legislation, hoping to pass the bill before July 4.
The National
7 hours ago
- Business
- The National
Trump jokes that Uber chief should negotiate Iran nuclear deal
The US President spoke to Dara Khosrowshahi at an event with business leaders at the White House
The Verge
18 hours ago
- Business
- The Verge
Posted Jun 9, 2025 at 3:40 PM EDT
Nilay Patel Well, here's this. In case you're wondering, Uber CEO Dara Khosrowshahi's last name is pronounced 'kos-row-shah-hee,' which is, of course, exactly how it's spelled.
The Independent
21 hours ago
- Business
- The Independent
Trump gets Dell, Uber, Goldman Sachs to pay Americans $1K for each baby born — if ‘beautiful bill' passed
Executives from a trio of the biggest and most widely known companies in America are lining up behind President Donald Trump 's plan to create investment accounts for children born during his second term as an enticement to pass his divisive One Big Beautiful Bill Act currently under consideration in Congress. Dell Computer founder Michael Dell, Uber CEO Dara Khosrowshahi, and Goldman Sachs boss David Solomon appeared at the White House on Monday alongside Trump for an event to promote what the bill labels 'Trump accounts' as a way of promoting financial literacy and encouraging Americans to have more children. Each announced that their respective companies would be willing to contribute to accounts established for children of their employees. The 'Trump accounts' would be tax-deferred and would start with a one-time contribution of $1,000 from the federal government. Funds deposited into the accounts would be invested to track the overall stock market and be accessible when the children reach age 21. Trump hailed the business leaders for participating in the project, calling them 'the greatest business minds we have today.' 'These men and women lead large, successful companies, and they're committed to contributing millions of dollars to the Trump account. And it's really it's going to be something incredible for children and for their employees in many cases,' he said. 'This is a pro family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation, and they'll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future,' he added. The president credited Dell, a longtime Republican donor, with having brought the 'Trump account' concept to his attention, as well as GOP Representative Blake Moore of Utah and House Speaker Mike Johnson, the latter of whom hailed the proposed policy as ' a bold, transformative policy that gives every eligible American child a financial head start from day one.' But the plan Republicans have adopted actually follows one that has been implemented in places such as California, Connecticut and the District of Columbia — each of which has introduced 'baby bonds' which invest funds for newborns that are available when they reach adulthood for education and other purposes. The idea dates back to 2010 as an academic proposal for reducing wealth inequalities and breaking cycles of poverty, and it was the centerpiece of New Jersey Senator Cory Booker's short-lived 2020 presidential campaign. The Trump administration proposal included in the One Big Beautiful Bill Act would require at least one parent to produce a Social Security number with work authorizations, which would prevent children of some categories of immigrants from having accounts established for them. Unlike the District of Columbia's program and similar ones that are intended to reduce poverty by targeting disadvantaged groups, the 'Trump account' program would be available to families of all incomes. Dell, the veteran entrepreneur and home computer pioneer, said his company was 'proud to be one of the very first companies' to support the proposal. 'Following your inspiring lead, Mr. President, Dell Technologies will match the government's contributions dollar for dollar for every child born to a Dell team member,' Dell said. 'This isn't just a new benefit. This is investment in our people, their families, our communities and America's future, and it embodies our core belief that opportunity should begin at birth.' He added that he and his wife 'expect to make a very significant gift' through his family's foundation to support the plan, calling it 'a powerful platform for Philanthropic Innovation aimed at helping children thrive wherever they come from, particularly those families who historically left behind.'
Forbes
a day ago
- Business
- Forbes
White House Unveils $1,000 ‘Trump Savings Accounts' Baby Bonuses: What To Know
A group of high-profile CEOs joined President Donald Trump at the White House on Monday to showcase a proposed investment account program, named after the president, for newborn children. Trump officially announced the 'Trump savings accounts' at a Monday afternoon roundtable alongside Dell CEO Michael Dell, Goldman Sachs CEO David Solomon and Uber CEO Dara Khosrowshahi, deeming it one of the 'most important' components of his second term. The Trump savings accounts are a component of Trump's 'Big Beautiful Bill' which passed the House of Representatives last month. The proposal calls for the Treasury Department to fund $1,000 in investment accounts for children born in the U.S. between Jan. 1, 2025 and Jan. 1, 2029. Newborn children will be automatically enrolled in the program. Parents or other account custodians can place up to an additional $5,000 in post-tax contributions annually into the accounts, which will be invested in index funds tracking the broader U.S. stock market. The account beneficiary will be able to withdraw up to 50% of their balance beginning at age 18. That person will then have access to the full balance beginning at age 25 for qualified purposes, including small business loans and higher education, before gaining full control of the entire balance at 30 for any use. The Trump savings accounts will require post-tax contributions and tax withdrawals as either long-term capital gains or normal federal income, unlike the tax-free qualified disbursements from 529 higher education and Roth IRA retirement accounts. The 'Trump savings accounts' were previously known as 'Money Accounts for Growth and Advancement' or 'MAGA Accounts,' a nod to Trump's 'Make America Great Again' slogan, before Republican lawmakers in the House renamed them just before passing the bill. $5,590. That's how much a $1,000 investment in the SPDR S&P 500 exchanged traded fund trust ($SPY) made June 9, 2007 – exactly 18 years ago – would be worth today, according to FactSet data, including reinvested dividends. That same investment made 31 years ago would be worth $22,770. The Trump savings accounts would cost taxpayers $3.6 billion in its current form of a government-funded $1,000 starting balance, based on the 3.6 million births in 2023, the most recent data from the National Center for Health Statistics. But Trump claimed Monday the government contributions would come at 'absolutely no cost' to taxpayers as it would be carved out from 'Big Beautiful Bill' initiatives including a 3.5% remittance tax on money sent abroad. The Trump savings accounts are 'not very attractive' for parents or other custodians to invest in, Alpha Financial Advisors CEO Ann Reilley told Yahoo Finance, adding it 'seems' like the Trump administration is 'complicating things for no reason.' Financial experts' skepticism of the program being the best place for parents to park money for their children beyond the $1,000 freebie stems from its comparatively limited tax benefits compared to 529 college savings and Roth IRA retirement accounts. The Trump savings accounts going into law are contingent on the Senate passing the 'Big Beautiful Bill,' which became increasingly murky as fiscal hawks like Sen. Rand Paul, R-Ky., raised concerns about projections of a swelling national debt under the package.
