Eric Balchunas|Jul 21, 2026 15:30
THESIS/PREDICTION: I've thought about this for a while and have come to the conclusion that Warren Buffett et al could/should choose Trump Accounts as the destination for donating their stock shares. This would kill multiple birds with one stone:
1. Immediately shrink wealth gap (esp if they target low income zip codes like Dell did) bc in the end almost ALL of their wealth is via stocks (cos they founded or invest in, see chart). While $1000 into SPYM is great, better than nothing, it just won't can't catch the compounding of mega rich.
2. Increase financial literacy - Everyone is for this and by donating stock it will induce ppl to learn about markets, investments etc, encourage capitalism over other economic theories that they'll be inundated w/ in college.
3. Curb the rise of 'redistribution' economic policies/politicians- might as well do it now like a hero bf you have to in the form of taxes or seizure. And to be fair the gov't effectively subsidizes the stock mkt through intervention and money printing which is totally regressive so this is way to level that out a bit.
4. Expand legacy - esp for Buffett who is 95, by gifting Berkshire shares to children they will grow up Berkshire investors. He'd be hero to them.
5. No mismanagement/skimming/cap gains tax - one issue with charitable donations is the end cause/ppl only sees a portion- esp if the govt is involved. Here, 100% of your donation goes directly to the intended party. And no cap gains tax to boot.(Eric Balchunas)
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