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The Trump administration's One, Big, Beautiful Bill currently making its way through Congress is being touted as pro-family legislation by the White House, in no small part because of the provision for MAGA baby savings account. This allows families to take a tax deduction in order to use that money to set up savings accounts for their babies.
White House Press Secretary Karoline Leavitt spoke about the provision during an early morning briefing, saying "This one big, beautiful bill is also pro-family. It will increase the child tax credit to $2,500 per child, establish optional savings account for newborn babies with a $1,000 credit added and strengthen paid family leave."
"This bill also delivers historic tax relief to America's seniors by allowing middle and low income Social Security recipients to deduct an additional $4,000 in payments from their taxable income," Leavitt continued. "If Democrats get their way and the Trump tax cuts are not extended, Americans will face the largest tax hike in history to the tune of $4 trillion.
"Republicans must not side with Democrats in helping them raise taxes. The One Big, Beautiful Bill also provides critical protections of Medicaid, which will strengthen and preserve the program for decades to come through common sense efforts to eliminate waste, fraud and abuse.
"Medicaid will no longer be used to pay for barbaric gender mutilation procedures on minor children, and the 1.4 million illegal aliens who are currently improperly receiving medicaid benefits will be kicked off the program to preserve it for hard working American citizens who need it.
"President Trump and Republicans are protecting Medicaid benefits for pregnant women, children, disabled individuals, low income seniors and families and the most vulnerable Americans in our society, and that's what Democrats are so angry about, basic Medicaid protections that will stop the funding of transgender insanity and illegal aliens from ripping off American taxpayers."
Leavitt was asked for details on the MAGA baby savings accounts and elaborated on how they work and who would be eligible for them.
"Not only does it increase the child tax credit, but it also includes MAGA baby savings accounts for children that are born before January 1, 2024, under 8-years-old, US citizens and have at least one parent with a valid social security number," Leavitt said. "And when this tax provision becomes law, the child will if, if the parents seek to do this, will be set up with a savings account."
"Essentially, it's a 401 K for a newborn baby and child's relatives," Leavitt continued, "their parents, can contribute up to $5,000 per year of after tax dollars annually to that account, and then later in the baby's life, at age 25, savings account holders can withdraw up to the full balance of the account. Upon reaching 30, the account holders can access the full balance of the account for any purpose desired. So it's a great initiative for new mothers who want to set up the savings account for their children."
The bill, coming in at a whopping 1,116 pages, has hit snags in the House where some in the GOP don't think it goes far enough in reducing the national debt or allowing for state and local income tax deductions. President Trump is set to meet with lawmakers on Capitol Hill Tuesday morning to encourage them to pass the bill.
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