Echoing Trump, KMT, TPP propose 'Taiwan Future Accounts' for children

Taipei, Dec. 25 (CNA) Taiwan's opposition parties on Thursday announced plans for government-funded investment accounts for children that could be claimed in full upon turning 18.

The Kuomintang (KMT) and smaller Taiwan People's Party (TPP) unveiled the "Taiwan Future Accounts" at a press conference, saying the policy would help ease financial pressure on parents and combat Taiwan's declining birthrate.

According to the draft version of the plan, the government would set up accounts for children aged 12 and below with valid household registration in Taiwan -- currently around 2.26 million people.

The government would put an initial sum of NT$50,000 (US$1,591) in each account, followed by an additional NT$10,000 every year until a child turns 12, which would be invested in index funds on Taiwan's stock market.

While parents or guardians would be allowed to deposit additional funds, the account would belong to the child, the plan states, likening its operation to individual accounts under the new labor pension system.

Upon turning 18, the owner of the account would receive the accumulated funds to help pay for higher education, start a business, put toward a down payment on a house, or invest, the proposal states.

At the press conference, TPP Chairman Huang Kuo-chang (黃國昌) acknowledged that the inspiration for the proposal came from the "Trump Accounts" program recently announced in the United States.

He argued that the program would serve as "an investment in the next generation," at a time when the number of births in Taiwan has been dropping year-on-year, and is likely to fall below 110,000 in 2025.

Based on trial calculations, a Taiwan Future Account would have a value of NT$339,000 (US$10,782) in it by the time a holder turned 18, or NT$561,000 if the holder's parents also contributed NT$10,000 per year, he said.

KMT Chairperson Cheng Li-wun (鄭麗文) said the funds for the program would be overseen by a Taiwan Future Accounts Fund Management Committee established by the government.

In addition to benefiting young adults at an important stage in their lives, the funds' investment would also bring benefits to Taiwan's stock market and economy, she said.

The program would cost an estimated NT$113 billion in the first year after its launch, followed by an annual investment of NT$26 billion, assuming a figure of 120,000 new births per year, Cheng said.

In response to the opposition's proposal, the Ministry of Health and Welfare said such a program would require "more comprehensive and careful" planning, and should give priority to those in need.

"Given that the government's 2026 budget proposal already requires borrowing nearly NT$300 billion, the funding sources and longer-term fiscal impact [of such a proposal] must be carefully considered," the ministry said.

Asked to comment, Democratic Progressive Party legislative caucus leader Chung Chia-pin (鍾佳濱) told CNA that if the proposal is introduced as a special act in the Legislature, it would be unconstitutional.

Citing Article 70 of the ROC Constitution, Chung said the Legislative Yuan cannot make proposals for an increase in expenditures in a budgetary bill presented by the Executive Yuan.