Democratic congressmen from both legislative bodies in Washington relaunched a bill that seeks to grant a minimum of $1,000 to American families with newborn babies.
The plan, known as American Opportunity Accounts, could involve up to $2,000 for families depending on income.
The recipients would have access to the accounts, which would be administered by the Treasury Department, when they turn 18. The money must be used for higher education expenses or for the purchase of a home, indicates the NBC News report.
According to the project presented by Senator Cory Booker and Representative Ayana Pressley, in the case of accounts for a family of four with income of $25,100 dollars or less, these could reach up to $46,215 by the time the minor turns 18. The amounts they would be reduced for households with higher incomes, as the annual supplemental payments would gradually decline.
The legislation establishes that the money allocations would be fully paid for through the increase in inheritance and inheritance taxes.
″Baby bonds would mend our broken tax code by giving every child a start-up capital for a lifetime, and helping to reduce the wealth inequality that prevents families in the United States from developing their full potential,” Booker said, as quoted by the network.
In addition to narrowing the gap between rich and poor in the US, the measure could help reduce the wealth gap based on race.
In 2016, black households had a median wealth of $17,100 and Hispanics $20,600, while whites had a median wealth of $171,000, according to the Pew Research Center.
The so-called “baby bonds” are already known in several states.
According to the Urban Institute, California, Connecticut and Washington DC have passed laws in this direction. While the states of Iowa, New Jersey, New York, Wisconsin, Washington, Delaware, Nevada, and Massachusetts have introduced such laws.
Both the amount of the funds, as well as the use that should be given to the money vary.
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