Democrats Propose
Plan to Provide Every
Child With a $1,000
Savings Account.
On Thursday, Democrats reintroduced legislation
that would provide every child with an interest-accruing
fund managed by the Treasury Department.
The plan is spearheaded by Senator Cory Booker
and Representative Ayanna Pressley.
It was cosponsored by Senate Majority Leader Chuck Schumer
and Senators Elizabeth Warren, Bernie Sanders and Dick Durbin. .
According to their legislation,
each child would receive an
“American Opportunity Account”
at birth, seeded with $1,000. .
From then on, each year the child would receive between
$0 and $2,000, depending on family income. .
At age 18, the recipient could access their account
and utilize the funds for “wealth-building activities.” .
These activities include higher education,
homeownership and entrepreneurship. .
According to Booker, “Baby Bonds” represents
a “once-in-a-generation” chance to “close the racial
wealth gap” and “unleash economic opportunity.”.
When it comes to racial justice,
we cannot afford to wait. As we emerge
from this dark period of our nation’s
history, Baby Bonds is exactly the
type of universal, race conscious
program necessary to build our
economy back better, Cory Booker, via 'Business Insider'.
The legislation also noted that the cost of
“Baby Bonds” would be about $60 billion annually.
Booker previously argued that hiking estate taxes and closing
tax breaks for the wealthy could easily offset the cost.
In a country as wealthy as ours,
every person should have access to
economic opportunity and the chance
to build assets and create wealth, Cory Booker, via 'Business Insider'