Dems propose ‘baby bonds’ to close the racial wealth gap: ‘Black lives and Black wealth ma

Dems propose ‘baby bonds’ to close the racial wealth gap: ‘Black lives and Black wealth matter’

House and Senate Democrats this week proposed a bill that would instruct the federal government to give anyone born in the U.S. after 2005 a $1,000 "seed savings account," and then make contributions to that account until they are 18 – a plan sponsors say is aimed at closing America’s "racial wealth gap."

If enacted into law, the bill would transfer billions of dollars in wealth from high-income families to low-income families, as it would fund the program by significantly increasing estate tax revenues.

The "baby bonds" bill, from Sen. Cory Booker, D-N.J., and Rep. Ayanna Pressley, D-Mass., would give children up to $2,000 a year in the lowest income families, an amount that would drop as families earn more. Once a family makes more than 500% of the federal poverty level, their kids would only receive the initial $1,000 payment.


They estimate children in the poorest families would have $46,000 to use for school or buying a home by the time they turn 18, and Booker said in a statement that the plan is explicitly aimed at fixing "wealth inequality."


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