US media: "Trump Account" may allow the wealthy to donate stocks directly

Odaily Planet Daily News According to a report by the New York Times, officials from the White House and the U.S. Treasury Department have begun internal discussions on expanding the range of permissible investments for the "Trump Account" (officially designated as Account 530A). Current discussions include allowing the world's wealthiest individuals to donate shares of their companies. The Trump Account currently only permits cash investments in diversified index funds and does not allow stock donations. This idea aims to tap into the unrealized wealth of billionaires like Elon Musk or Jensen Huang. If the relevant rules are amended, Musk could directly donate Tesla or SpaceX stock, and Jensen Huang could donate Nvidia stock.

Compared to the slow and steady returns of index funds, children would be able to hold exposure to high-growth, large-cap tech stocks over the long term, potentially yielding substantial profits. Donors, meanwhile, could transfer billions of dollars in high-priced stocks without triggering capital gains taxes, while also receiving a full charitable contribution tax deduction based on the stock's fair market value, further reducing their tax burden.

However, this idea has sparked debate within the Treasury Department. Restricting the Trump Account to diversified index funds was originally intended to protect children from the sharp volatility of the market. Changing the current rules would require amending relevant regulations, which may need to be accomplished through legislation. (Jin Shi)