Booker bill would create federally funded savings account

Trying to one up She Guevara

Sen. Cory Booker (D-N.J.) is introducing a bill to give every U.S. child an interest-bearing savings account at birth in an attempt to reverse rising economic inequality.

The accounts would be administered by the Treasury Department and start with a $1,000 principal balance granted by the federal government. The government would then deposit up to $2,000 a year into each child’s account depending on total family income until the recipient turns 18.

The accounts would be federally insured, and the funds could only be used for homeownership, and “human and financial capital investments that [change] life trajectories,” according to the summary.

The program would cost roughly $60 billion if implemented in 2019, a Booker aide told the Hill, and would be funded by increasing the capital gains tax rate by 4.2 points, increasing the estate tax to its 2009 level and raising taxes on multi-million-dollar inheritances.

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