Trump Accounts Are a New Way to Redistribute Wealth

Economists may disagree about how important the issue of wealth inequality is, but politicians don’t. With a majority of Americans saying the gap between rich and poor is a very big problem, punitive wealth taxes are gaining in popularity and some elected officials are feuding with their wealthiest citizens.

Now the wealthy are responding — not just by moving to walled compounds in Miami, but in a more productive way: by giving their money directly to children in lower-income families. First Michael Dell and his wife donated $6.25 billion last year to seed so-called Trump accounts for up to 25 million children with $250 each. Now this week there are reports that the administration is considering a plan to allow these accounts to accept direct donations of stock from billionaires, who are said to be interested in the idea.