Posted on 05/24/2025 10:11:07 AM PDT by FRinCanada2
https://www.congress.gov/119/bills/hr1/BILLS-119hr1rh.pdf
SEC. 110115. MAGA ACCOUNTS. (a) IN GENERAL.—Subchapter F of chapter 1 is amended by adding at the end the following new part: ‘‘PART IX—MAGA ACCOUNTS ‘‘SEC. 530A. MAGA ACCOUNTS. ‘‘(a) GENERAL RULE.—A MAGA account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations). ‘‘(b) MAGA ACCOUNT.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘money account for growth and advancement’ or ‘MAGA account’ means a trust created or organized in the United States for the exclusive benefit of an individual and
Wouldn’t the establishment of this trust cause inflation?
Yes, and it’s vote buying as well.
There is a LOT in this Bill to digest. This is just ONE provision that caught my eye. — If this passes you can “Gift” tax-free $5,000 worth of “MAGA” approved stock to someone 18-31 years of age? Is this an accurate read?
Sort of, but gifts are already exempted from taxes up to $13.99 million per individual. So this allows an "individual" to open a "MAGA" account for another individual under 18. The account is tax deferred, then taxed as capital gains when distributed. The eligible distributions are for education and a primary residence, and the account must be fully distributed by age 31.
"HR 1 - MAGA Account? —. $5,000 tax free account ?"
This is probably not the best time to do the following. But hopefully after a MAGA account, arguably a step in the right direction, we need to see the new 120th Trump Congress, new state legislatures too, that patriots elect in 2026, pass a referendum for successfully proposing a new amendment to the Constitution to the states to repeal the 16th (direct taxes) and 17th Amendments Amendments.
The 16th Amendment is the pot of gold at the end of the rainbow for organized crime. that amendment weakening our 4th Amendment protections imo, and desperately needs to be repealed along with the 17th Amendment, popular voting for federal senators.
We'll call the repeal amendment Trump's Boston Tea Party II Amendment.
Once unconstitutional federal taxing and spend is stopped, the states will ultimately find a tsunami of new revenues that they probably won't know what to do with imo.
"16th Amendment: The Congress shall have power to lay and collect taxes on incomes, from whatever source derived [emphasis added], without apportionment among the several States, and without regard to any census or enumeration."
"4th Amendment: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States." —Justice John Marshall, Gibbons v. Ogden, 1824.
“If the tax be not proposed for the common defence, or general welfare, but for other objects, wholly extraneous, (as for instance, for propagating Mahometanism among the Turks, or giving aids and subsidies to a foreign nation, to build palaces for its kings, or erect monuments to its heroes,) it would be wholly indefensible upon constitutional principles [emphases added].” — Justice Joseph Story, Commentaries on the Constitution 2 (1833).
The congressional record shows that Rep. John Bingham, a constitutional lawmaker, had clarified the federal government's constitutionally limited powers as follows.
”Simply this, that the care of the property, the liberty, and the life of the citizen, under the solemn sanction of an oath imposed by your Constitution, is in the States and not in the federal government [emphases added]. I have sought to effect no change in that respect in the Constitution of the country.” —John Bingham, Congressional. Globe. 1866, page 1292 (see top half of third column)
“Cherish, therefore, the spirit of our people, and keep alive their attention. If once they become inattentive to the public affairs, you and I, and Congress and Assemblies, judges and governors, shall all become wolves [emphasis added]. It seems to be the law of our general nature.” - Thomas Jefferson (Letter to Edward Carrington January 16, 1787)
Pelosi: "We have to pass the bill so that you can find out what is in it." (non-FR; 6 sec.)
Illegals are indeed getting immediate Social Security, contrary to Democrat claims (7.11.24)
Democrats [and RINOs] Are Terrified Of An Educated And Informed Public (3.12.23)
No thanks. I just want to keep more of my own retirement money.
Yes, and it’s vote buying as well.
This isn't a case of printing and giving away money. The gift giver (probably a relative) has already paid taxes on the gift. The gift receiver will pay capital gains taxes on the distributions, unless they are used for education or a home purchase, before age 31. Seems to be a little more flexible in some ways than a 529 plan, but the same idea.
Thanks for chiming in. There is so much to digest in this “Big Beautiful Bill”. I look forward to following the Senate debate on the many provisions—. Notably not a single Dem vote in the House I presume was not so much about what it does - but more about what it does NOT do that —- Things that the Dems would want added to get a single vote. ??
Or is there something IN it that is so “bad” in their view that not a single democrat could vote for it ??
As for retirement money. Are you talking pension income or retirement savings. Aka ROTH
Never had a 401k, no savings whatsoever. I had to donate to my State pension. Had approximately 33 years with NY State’s retirement system. When I retired, I took the reduced amount so that if I died within 15 years, my two sons would get what was left. I screwed them out of that since I’m in my 22nd year of retirement now. Any money that was in my pension fund was depleted a while ago. I still get my pension and social security each month, but I support my youngest son who lives with me since returning from Indiana. He can’t work due to residual side effects of colon cancer and chemo. He receives social security disability of less than a thousand a month. Has Medicare and pays for supplemental insurance that includes scripts of which he takes many. He’s been recently diagnosed with Hypertrophic cardiomyopathy, and had major surgery last fall for an internal hernia and blockage. Two weeks after discharge, he ended up being readmitted for bleeding, which they repaired via endoscopy. He’s 54. He’s on a new medication that requires monitoring every four weeks, and which requires us to go to Rochester, NY, about 3 hours away. We’re heading there on Wednesday for his first follow-up after being on a new heart medication.
Copy all. Thanks for sharing your story
“If this passes you can “Gift” tax-free $5,000 worth of “MAGA” approved stock to someone 18-31 years of age?”
Present gift tax exemption is $19,000 per year for any type of gift.
More if you fill out the right forms and don’t exceed $13.99 million lifetime.
I believe the only “limits” for MAGA accounts is $5,000 for the recipient. I don’t see any limits and the gifter? Or would this be counted toward the 13.99m limit ?
If my read is correct there would be no limits on how much an individual can gift in aggregate. Just not more that $5,000 person or SSN. — this means HUMAN living person is different than the broader term “tax-Id” which can be an infinite number of “LLC’s”
Correct ?
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