Paternalism Reigns in an SEC ‘Investor' Rule
While EquityZen's and Forge Global's lowering of investment minimums represents progress, the fundamental issue remains: The Securities and Exchange Commission's accredited investor rule prohibits participation for most Americans ('Small Investors Get Access to Pre-IPO Shares,' Business & Finance, March 26). Because companies remain private for nearly 11 years before initial public offerings, most wealth creation occurs before average Americans can participate. The arbitrary accredited investor standards perpetuate a two-tiered system by which only the already wealthy can access potentially transformative investments. A truly freedom-respecting approach would focus on transparency and disclosure rather than prohibition.
The current system's paternalistic approach assumes that nonwealthy Americans lack the judgment to evaluate investment opportunities. Meanwhile, these same people have unlimited freedom to give away their money or spend it on lottery tickets, casino gambling or other high-risk activities with negative expected returns. True financial freedom means respecting people's right to allocate resources according to their own priorities and risk tolerance. Some investors might prefer to put small amounts into high-potential private companies rather than public markets or consumption. The current regulatory framework doesn't protect people from making poor financial choices. It simply restricts certain choices to those who are already wealthy. Innovation is finding ways around these barriers, but comprehensive regulatory reform remains essential.
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Newsweek
4 hours ago
- Newsweek
Senate to Vote on Trump's 'Big, Beautiful Bill': Here's What It Contains
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The U.S. Senate is working through the weekend to pass President Donald Trump's comprehensive domestic policy bill, a sprawling 940-page piece of legislation that Republicans are calling crucial for the nation's economic future. The U.S. House of Representatives has already passed their version, and senators are now working to finalize their draft before sending it back for a final House vote while Democrats remain united in opposition to the package. Why It Matters This legislation represents Trump's signature domestic policy initiative, combining massive tax cuts with significant spending on border security and defense while implementing substantial cuts to social safety net programs. The Congressional Budget Office (CBO), which is nonpartisan, estimates the House's version would add $2.4 trillion to the nation's deficit over the next decade, though Republicans dispute this calculation. The bill's passage would fundamentally reshape federal spending priorities and tax policy, affecting millions of Americans across income levels. What To Know The bill centers on approximately $3.8 trillion in tax cuts, making permanent the tax rates and brackets from Trump's first term while adding new exemptions for tips, overtime pay, and some automotive loans. The legislation would increase the child tax credit from $2,000 to $2,200 and provide a $6,000 deduction for older adults earning under $75,000 annually. The state and local tax (SALT) deduction cap would increase from $10,000 to $40,000 for five years. For border security and immigration enforcement, the package allocates $350 billion, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds. The plan aims to deport approximately 1 million people annually through hiring 10,000 new U.S. Immigration and Customs Enforcement (ICE) officers and expanding Border Patrol forces. To offset costs, Republicans propose significant cuts to Medicaid, food stamps, and green energy programs, potentially saving $1.5 trillion. The legislation would impose new 80-hour monthly work requirements for Medicaid and food stamp recipients up to age 65, while rolling back former President Joe Biden-era's renewable energy tax incentives. The CBO estimates these changes would leave 10.9 million more people without health coverage and 3 million without food stamp eligibility. Additional provisions include $25 billion for the "Golden Dome" missile defense system, establishment of "Trump Accounts" children's savings program, and $40 million for a "National Garden of American Heroes." The bill also restricts artificial intelligence (AI) development, blocks transgender surgeries, and directs the sale of up to 1.2 million acres of public land for housing development. The U.S. Capitol is seen on June 28 in Washington, D.C. The U.S. Capitol is seen on June 28 in Washington, People Are Saying President Donald Trump on Truth Social on Friday: "The Great Republicans in the U.S. Senate are working all weekend to finish our 'ONE, BIG, BEAUTIFUL BILL.' We are on the precipice of delivering Massive General Tax Cuts, NO TAX ON TIPS, NO TAX ON OVERTIME, NO TAX ON SOCIAL SECURITY FOR OUR SENIORS, Permanently Securing our Borders, an even Bigger and More Powerful Military." House Republicans' X, formerly Twitter, account wrote on Friday: "House Republicans are united and ready to DELIVER the largest tax cut for working and middle-class Americans in history. The One Big Beautiful Bill Act will unleash our economy and restore the American Dream." Senate Democratic Leader Chuck Schumer of New York wrote on X on Saturday: "BREAKING: I will object to Republicans moving forward on their Big, Ugly Bill without reading it on the Senate floor. Republicans won't tell America what's in the bill. So Democrats are forcing it to be read start to finish on the floor. We will be here all night if that's what it takes to read it." Trump on Truth Social on Saturday: "WHY ARE THE DEMOCRATS ALWAYS ROOTING AGAINST AMERICA???" Tech billionaire and MAGA ally Elon Musk wrote on X on Saturday: "Polls show that this bill is political suicide for the Republican Party." In his post, he shared polling data from The Tarrance Group that showed majority opposition across different voter groups. What Happens Next The Senate must complete its work and pass the bill before sending it back to the House for a final vote. Trump has demanded the legislation reach his desk by July 4th. With Democrats united in opposition and some Republican concerns emerging over provisions affecting rural hospitals and AI restrictions, the timeline remains uncertain. Reporting from the Associated Press contributed to this article.
Yahoo
5 hours ago
- Yahoo
The Future of Social Security Just Went From Bad to Worse. Here's What Seniors Can Expect Next.
The Social Security trustees expect to deplete the trust fund in just a few years without changes. Cuts to the program will be even steeper than expected a year ago. There are several factors driving the increased deficit. The $23,760 Social Security bonus most retirees completely overlook › Social Security is the backbone of many Americans' retirement plans. More than one-third of adults said the government program would be a major source of income in retirement in the most recent edition of an annual Gallup poll. That number has climbed higher over the last 20 years since Gallup started the survey. Meanwhile, six in 10 current retirees say their monthly check is a big piece of their budget. But with more and more Americans relying on Social Security, the future of the program has never looked more uncertain. Not only are seniors staring down the barrel of benefit cuts in just a few years, but the problem is only getting worse. Here's what seniors can expect and how they can plan for the future of Social Security. Retirees could see a significant benefit cut in just eight years if Congress doesn't act to change Social Security and improve its longevity. That's when the Social Security Board of Trustees estimates the program will deplete the Social Security Old Age and Survivors Insurance trust fund. The Social Security trust fund was established to hold excess tax revenue from wages to pay out to retirees when they start collecting benefits later. In the meantime, the Social Security Administration invests those funds in government bonds to earn a steady return on the principal. Over time, the balance grew as the working population grew faster than the retirement population. But as Baby Boomers started retiring, life expectancies increased, and younger generations had fewer children, the demographic shifts started putting pressure on the trust fund balance. As a result, Social Security has been running a deficit in most years since 2018. And that deficit is getting worse each year as the retired population grows faster than the working population. Every year, the trustees analyze the current state of Social Security and forecast the future of the program. Changes in the workforce, life expectancies, or Social Security policies can impact those estimates. Unfortunately for seniors, the projections got even worse this year. While the 2024 Trustees Report expected retirees to face a 21% overall reduction in benefits starting in 2033, that number climbed to 23% in the latest edition. Here's why seniors could be facing bigger benefits cuts and what they can do about it. It's not just the growing retiree population that's negatively impacting the health of Social Security. After all, almost everyone collecting Social Security today paid into the system for years before retiring. One notable shift negatively impacting Social Security is the growing income inequality in America. Only 82% of earnings were subject to Social Security tax in 2022. That compares to the 90% benchmark Congress targeted in its 1983 Social Security reforms. But even if we returned to that benchmark, it would only make up a portion of the shortfall over the coming years. Another challenge is a slow-growing working population. That's exacerbated by a decline in immigration and further hurt by current immigration policies imposed by the Trump administration. That said, allowing more immigrants to work in the United States (and pay Social Security taxes) would provide only a small amount of additional revenue to Social Security. The biggest change over the past year that's led the trustees to increase their forecast of the Social Security shortfall is the passage of the Social Security Fairness Act. The law repealed the Windfall Elimination Provision and Government Pension Offset, boosting Social Security benefits for 3.2 million retirees and many more in the future. It was also retroactive to 2024, further depleting the trust fund. So, while those retirees will see a step up in their benefits, many more could see deeper cuts in the future. That's not lost on most seniors, and it's led a surprising number of 62-year-olds to claim their benefits as soon as possible this year instead of waiting to maximize their benefits at age 70. But that might not be the smartest move. Here's why. While the program faces a major threat if Congress fails to act within the next eight years, it's still in most seniors' best interest to wait to claim Social Security on their own terms. There are two key reasons. First, it's highly unlikely Congress will allow Social Security benefits cuts. It may enact laws raising the full retirement age in the future, increasing the Social Security tax, increasing the amount of taxable wages, or some combination of all that and more. It could allow benefits to come out of the general fund instead of the trust fund (hopefully with a plan to return Social Security to solvency and reduce the overall government debt). But the clock is ticking for Congress to take action. Second, even if there are benefit cuts in the future, taking Social Security early (when you'd otherwise wait) could result in a much worse scenario for you in the future. The breakeven point for lifetime Social Security income will get pushed out further if you wait and Social Security is forced to cut benefits. But at its core, Social Security is longevity insurance. You'll be much better off in your late 80s if you waited to take Social Security and receive a bigger check than if you claimed as soon as possible. So, while the outlook for Social Security is getting worse, seniors shouldn't be in a rush to get their money while they can. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. The Future of Social Security Just Went From Bad to Worse. Here's What Seniors Can Expect Next. was originally published by The Motley Fool
Yahoo
5 hours ago
- Yahoo
The Future of Social Security Just Went From Bad to Worse. Here's What Seniors Can Expect Next.
The Social Security trustees expect to deplete the trust fund in just a few years without changes. Cuts to the program will be even steeper than expected a year ago. There are several factors driving the increased deficit. The $23,760 Social Security bonus most retirees completely overlook › Social Security is the backbone of many Americans' retirement plans. More than one-third of adults said the government program would be a major source of income in retirement in the most recent edition of an annual Gallup poll. That number has climbed higher over the last 20 years since Gallup started the survey. Meanwhile, six in 10 current retirees say their monthly check is a big piece of their budget. But with more and more Americans relying on Social Security, the future of the program has never looked more uncertain. Not only are seniors staring down the barrel of benefit cuts in just a few years, but the problem is only getting worse. Here's what seniors can expect and how they can plan for the future of Social Security. Retirees could see a significant benefit cut in just eight years if Congress doesn't act to change Social Security and improve its longevity. That's when the Social Security Board of Trustees estimates the program will deplete the Social Security Old Age and Survivors Insurance trust fund. The Social Security trust fund was established to hold excess tax revenue from wages to pay out to retirees when they start collecting benefits later. In the meantime, the Social Security Administration invests those funds in government bonds to earn a steady return on the principal. Over time, the balance grew as the working population grew faster than the retirement population. But as Baby Boomers started retiring, life expectancies increased, and younger generations had fewer children, the demographic shifts started putting pressure on the trust fund balance. As a result, Social Security has been running a deficit in most years since 2018. And that deficit is getting worse each year as the retired population grows faster than the working population. Every year, the trustees analyze the current state of Social Security and forecast the future of the program. Changes in the workforce, life expectancies, or Social Security policies can impact those estimates. Unfortunately for seniors, the projections got even worse this year. While the 2024 Trustees Report expected retirees to face a 21% overall reduction in benefits starting in 2033, that number climbed to 23% in the latest edition. Here's why seniors could be facing bigger benefits cuts and what they can do about it. It's not just the growing retiree population that's negatively impacting the health of Social Security. After all, almost everyone collecting Social Security today paid into the system for years before retiring. One notable shift negatively impacting Social Security is the growing income inequality in America. Only 82% of earnings were subject to Social Security tax in 2022. That compares to the 90% benchmark Congress targeted in its 1983 Social Security reforms. But even if we returned to that benchmark, it would only make up a portion of the shortfall over the coming years. Another challenge is a slow-growing working population. That's exacerbated by a decline in immigration and further hurt by current immigration policies imposed by the Trump administration. That said, allowing more immigrants to work in the United States (and pay Social Security taxes) would provide only a small amount of additional revenue to Social Security. The biggest change over the past year that's led the trustees to increase their forecast of the Social Security shortfall is the passage of the Social Security Fairness Act. The law repealed the Windfall Elimination Provision and Government Pension Offset, boosting Social Security benefits for 3.2 million retirees and many more in the future. It was also retroactive to 2024, further depleting the trust fund. So, while those retirees will see a step up in their benefits, many more could see deeper cuts in the future. That's not lost on most seniors, and it's led a surprising number of 62-year-olds to claim their benefits as soon as possible this year instead of waiting to maximize their benefits at age 70. But that might not be the smartest move. Here's why. While the program faces a major threat if Congress fails to act within the next eight years, it's still in most seniors' best interest to wait to claim Social Security on their own terms. There are two key reasons. First, it's highly unlikely Congress will allow Social Security benefits cuts. It may enact laws raising the full retirement age in the future, increasing the Social Security tax, increasing the amount of taxable wages, or some combination of all that and more. It could allow benefits to come out of the general fund instead of the trust fund (hopefully with a plan to return Social Security to solvency and reduce the overall government debt). But the clock is ticking for Congress to take action. Second, even if there are benefit cuts in the future, taking Social Security early (when you'd otherwise wait) could result in a much worse scenario for you in the future. The breakeven point for lifetime Social Security income will get pushed out further if you wait and Social Security is forced to cut benefits. But at its core, Social Security is longevity insurance. You'll be much better off in your late 80s if you waited to take Social Security and receive a bigger check than if you claimed as soon as possible. So, while the outlook for Social Security is getting worse, seniors shouldn't be in a rush to get their money while they can. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. The Future of Social Security Just Went From Bad to Worse. Here's What Seniors Can Expect Next. was originally published by The Motley Fool
