Sen. Cory Booker (D-NJ) and fifteen other Democratic Senators want to give $1,000 to every American child every year until they reach adulthood.
The American Opportunity Accounts Act — reintroduced by Booker in January — would give each American child $1,000 in “Baby Bonds” at birth. Depending on household income, the child’s interest-bearing account would receive up to $2,000 annually, which could be accessed at age eighteen for buying a home, starting a business, or paying for college.
While children from disadvantaged families could see their accounts reach nearly $50,000 in value, children from wealthy families would only end up with a total of $1,600 by their eighteenth birthday.
In a country as wealthy as ours, every person should have access to economic opportunity and the chance to build assets and create wealth. That’s why we need to pass Baby Bonds which would help level the playing field and close the growing wealth gap in our country.
— Sen. Cory Booker (@SenBooker) June 10, 2021
As CNBC reports, the plan could cost the federal government between $60 billion and $80 billion.
Among the bill’s cosponsors are Majority Leader Chuck Schumer (D-NY), Sen. Dick Durbin (D-IL), Sen. Bernie Sanders (I-VT), and Sen. Elizabeth Warren (D-MA). Similar legislation in the House is endorsed by Rep. Rashida Tlaib (D-MI) and Rep. Ayanna Pressley (D-MA). – READ MORE
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