‘free Money’: Cnn’s Dana Bash Calls Trump Accounts ‘phenomenal’

CNN anchor Dana Bash spoke with Dave Goldman, a senior reporter for CNN business, about President Donald Trump’s “Trump Accounts” and offered some rare praise for the president.

“Expert on all things Wall Street, Dave Goldman is here to help us understand these accounts. First, Dave, explain how they work and who is potentially allowed to invest,” began Bash, turning to Goldman.

“Yeah, Dana. And when the free money machine is open and they’re giving out a thousand dollars, I think a lot of people want to know, “How do I get that?” So if you have a child that was born in 2025 or beyond, then you can get this ‘Trump Account,‘ as long as you’re a U.S. citizen and you have a valid Social Security number for your kid. And actually, if you apply for a Social Security number, you can now apply for a Trump account at the same time with the same form,” Goldman said, adding:

So what are the rules? How do you get this? Well, you can contribute $5,000 a year, tax-free — tax-deductible investments in a low-cost index fund, like the S&P 500. Remember, the S&P 500 made 300% over the past 10 years. That could be a really good investment. But even if you don’t invest in it, it’s a pretty good deal, and you can use it for things like college — obviously, because when you’re 18, that’s one of the places you’re going. But you might want to use it for your first home. You can even just keep it in your account and use it for retirement.

If you use it for something that’s not one of these, though, then you do get a 10% penalty, and you have to pay those taxes that I mentioned before.

Now, if you do not contribute to this and you just keep the $1,000 — still with a 10% return, which is pretty conservative over the past 10 years — look at this: you can still walk away with $5,500 for college or something else like that. Now, that’s not gonna pay for college. If you do max out your contributions, you’re talking about some really serious money — about a quarter million dollars by the time your child is 18, assuming those 10% returns.

So the question is, how do I get this? Well, of course, it’s IRS Form 5471… why do you think that might be, Dana? Dana. And it is TrumpAccounts.gov, where you can sign up for all of this.

Bash replied, joking, “It’s so subtle.”

Goldman added sarcastically, “Yeah, I don’t get it. I’m not totally sure why, you know.”

“But listen, I mean, this is pretty phenomenal for people — as you said, free money. Even if you don’t contribute on your own, $5,000 will probably get you a textbook by then, but at least it’s something. I do want to play something the president said about the accounts this morning,” Bash said before playing a clip from Trump earlier in the day:

You got it. I think we’ve done a lot of great things, but I think this would be one of the top. It’s going to teach children to be entrepreneurial, as opposed to the threat of communism that you’re seeing a lot. This is not “social Democrats,” by the way — that’s beautiful. They say, “We’re social Democrats.” They’re not social — they’re communists.

“I think this is one of those Scooby moments when you go, ‘Huh?’ Because, yes, it’s a public-private partnership if people maximize, as you said, if people can invest and the government starts with a little bit of help. But the whole notion of the government helping — it’s not communism, but it is government involvement,” Bash added.

“Well, if it is communism, then so is Social Security, Medicare, Medicaid, your 401(k), your Roth IRA — all of these things that allow you to get money from the government to help you. This is what that is. Just because you can invest it and make a little bit of extra money doesn’t necessarily mean that it’s fighting communism. I think that we’ve got a lot of social benefit in this country mixed with capitalism. That is definitely a good thing, Dana,” Goldman replied.

Watch the clip above via CNN.

Jason Cohen contributed to this report. 

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