Ted Cruz pushes proposal to give $1,000 to every American child
Sen. Ted Cruz, R-Tx., has proposed a new initiative called the “Invest America Act,” which aims to provide $1,000 in a private tax-advantaged account for every American child at birth. This account would receive a $1,000 seed investment from the federal government, with the option for individuals, family members, friends, and businesses to contribute up to $5,000 annually.
The funds in the Invest America account could be invested in a low-cost fund that tracks the S&P 500, allowing for tax-deferred growth until the individual reaches age 18. At that point, distributions would be taxed at the capital gains rate. This initiative is designed to promote economic participation and prosperity for all Americans, as each child would have a stake in the American free enterprise system.
With the U.S. national debt surpassing $36.2 trillion and continuing to rise, Cruz’s proposal comes at a crucial time. The goal is to provide every child in America with an investment account that will compound over their lifetime, setting them up for financial success in the future.
The House Ways and Means Committee is set to review “The One, Big, Beautiful Bill,” which includes a pilot program for “MAGA accounts” that would provide $1,000 for children born during a specified period. This legislation aims to empower children and give them a head start in building wealth through investment.
Senator Cruz believes that enabling every child in America to have an investment account is a powerful way to ensure their future financial security and involvement in the country’s economic system. This initiative could be a landmark achievement of Republican efforts in Congress, setting the stage for increased economic prosperity for generations to come.
The Invest America Act has the potential to transform the way Americans approach saving and investing for the future. By providing children with the tools to grow their wealth from an early age, this initiative has the power to create a more financially secure and prosperous society for all.
