House Republicans have unveiled a draft tax bill that aligns with President Trump's agenda, introducing "MAGA accounts"âsavings accounts for children. The pilot program, championed by Senator Ted Cruz, offers $1,000 contributions to eligible children upon birth, aiming to foster early savings. Cruz believes this initiative could create a lasting legacy and promote financial literacy by emphasizing the benefits of compound interest. The plan is echoed in a similar concept proposed by Democratic Senator Cory Booker, aimed at establishing financial support for young Americans.
The case I made to my colleagues is: We should ask ourselves in this bill, what will be the legacy that people will remember and talk about 10 years from now?
Cruz emphasized that such accounts could begin the journey of savings for many Americans, enabling individuals to benefit from compound interest over the long term.
Parents with qualifying children would receive a one-time credit of $1,000 for a MAGA account, payable at birth.
The program reflects a concept similar to Cory Booker's 'baby bonds', aimed at providing early financial support to children.
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