Slate Money: The "One Big Beautiful Bill," Tariffs, and Trump Accounts

The "One Big Beautiful Bill"

• 🏛️ The "One Big Beautiful Bill" (OBBA) has been signed into law, significantly increasing budget deficits and described by some as "fiscally wild."
• 💸 A major point of contention is the increased funding for ICE and the allocation of funds for building the border wall, which is seen as ineffective and wasteful.
• 📉 Significant objections are raised regarding the changes to Medicaid and SNAP, including new work requirements projected to cut substantial amounts from these programs and the Affordable Care Act, potentially affecting millions and impacting economic growth.
• 🏥 The cuts to the safety net are criticized for potentially making individuals less employable due to lack of healthcare and disproportionately affecting rural areas with existing healthcare shortages.
• 💰 The extension of the Tax Cuts and Jobs Act from 2017 is highlighted as a key component of the bill, preventing a political nightmare for the Trump administration by avoiding tax rate increases.

Trump's Tariff Policies

• 🚢 Donald Trump is imposing tariffs, citing a vague "crisis" related to trade deficits, despite legal challenges questioning the legality of these actions.
• 🇧🇷 A 50% tariff on Brazil is noted, imposed not due to a trade deficit but seemingly as a political punishment against the current president for prosecuting a former president who was a friend of Trump's.
• 📈 Markets are perceived as sanguine about these tariffs, possibly due to a belief that courts will deem them illegal, but the potential economic impact on companies and prices is a growing concern.
• ☕ The 50% tariff on copper, a critical industrial metal, is particularly baffling, as it increases costs for American manufacturers and contradicts the goal of boosting domestic production.
• 🌍 The author argues that Trump's understanding of trade imbalances is simplistic, leading to policies that antagonize allies and disrupt global economic relationships.

Trump Accounts and Savings Vehicles

• 👶 A new "Trump Account" offers $1,000 to newborns, which must be invested 100% in stocks, regardless of risk tolerance or potential need for funds for college.
• 🏦 The proliferation of complex federal savings vehicles (401k, IRA, 529, etc.) is criticized, with a call for a simpler, universal savings account model, similar to those in Canada and New Zealand.
• 💸 The discussion touches upon the US's pathological aversion to direct aid, preferring tax breaks that often benefit higher earners and require navigating complex codes.
• 📉 The effectiveness of pro-natalist policies like the Trump Account is questioned, as they do little to support parents in the immediate years of raising a child.

Remittances and Economic Impact

• 💸 A new 1% tax on remittances is decried as "bonkers" and a punishment for immigrants, with potentially more harmful economic effects on recipient countries than the loss of US foreign aid.
• 🌎 Remittances are a significant source of income for many developing countries, dwarfing foreign aid and serving as a crucial economic lifeline.
• 🏦 The tax disproportionately affects immigrants without bank accounts, who may fear using official channels like Western Union, and exacerbates a "war on immigrants."

FTC Rule and Food Insecurity

• 🚫 A consumer-friendly rule requiring subscriptions to be as easy to cancel as they are to sign up for was overturned in federal court due to a failure to conduct a sufficient regulatory analysis.
• 🍽️ Alarmingly, 15.6% of US adults reported sometimes or often not having enough food to eat in May, a significant increase from 9% in 2021, with projections of further increases due to SNAP benefit cuts.