Sen. Ted Cruz, R-Tx., has introduced a proposal for the federal government to provide $1,000 in an account for every American child.
The ‘Invest America Act’ would create ‘a private tax-advantaged account with a $1,000 seed investment from the federal government for every American child at birth,’ according to a press release.
People would also be able to add funds to the account.
‘Each Invest America account will be open to contributions from individuals, family members, friends, and businesses up to $5,000 annually,’ the release states. ‘The account investments can be placed in a broad, low-cost fund that tracks the S&P 500, growing tax-deferred until the individual reaches age 18. Distributions after age 18 would be taxed at the capital gains rate.’
Cruz’s proposal comes as the U.S. national debt is more than $36.2 trillion, and is likely to keep climbing.
‘Every child in America will have private investment accounts that will compound over their lives, enhancing the prosperity and economic participation of the vast majority of Americans. When people years from now talk about the changes created by Republican efforts this Congress, this is one of the landmark achievements they will talk about,’ Cruz said, according to the press release.
The House Ways and Means Committee is slated to markup ‘The One, Big, Beautiful Bill’ on Tuesday. The legislation under consideration includes a pilot program for providing $1,000 in ‘MAGA accounts’ for children born during a certain period of time.
‘What is powerful is enabling every child in America to have an investment account and a stake in the American free enterprise system,’ Cruz noted, according to Semafor.