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.
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According to their legislation, each child would receive an “American Opportunity Account” at birth, seeded with $1,000.
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From then on, each year the child would receive between $0 and $2,000, depending on family income.
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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.
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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'