Democrats propose plan to give EVERY American born after 2005 a $1,000 savings account

• Democrats Sen. Cory Booker and Rep. Ayanna Pressley unveiled legislation to create the American Opportunity Accounts Act on Wednesday
• ‘The racial wealth gap in America is the result of generations of precise and intentional policy violence,’ Pressley said in a statement unveiling the bill
• Kids at the lowest income level would have roughly $46,000 by age 18

Congressional Democrats rolled out a spending proposal aimed at closing the racial wealth gap on Wednesday, which would give at least $1,000 to every American born after 2005.

Sen. Cory Booker (D-NJ) and Rep. Ayanna Pressley (D-MA) introduced the American Opportunity Accounts Act, which would federalize the use of ‘baby bonds’ for the country’s youth to help fight wealth inequality.

The program would be funded by raising estate and inheritance taxes. It would result in a major redistribution of wealth to middle and lower-income Americans.

The lawmakers estimate that children in families on the lowest income levels would have roughly $46,000 by the time they begin college, under the program.

Those kids would get $2,000 a year under the program – a number that decreases as families earn more income. 

Children in families at the very top of the applicable financial ladder – for instance, a family of four with a household income of $125,751 – would only end up with an estimated $1,600 when they turn 18.

Kids whose guardians are bringing in about $81,575 for a family of four would be eligible for $250 per month and end up with just over $7,000.

‘The racial wealth gap in America is the result of generations of precise and intentional policy violence, so we must be as intentional and as precise about advancing policies that address it head on,’ Pressley said in a statement unveiling the bill.

‘Baby Bonds are one of the most effective tools we have for closing the racial wealth gap and breaking the cycles of poverty and trauma that have prevented Black and brown folks from thriving in this country.’

She noted that the concept of baby bonds had ‘gained traction’ in parts of the country. 

California, Iowa, Delaware and New Jersey are just some of the states that have introduced their own legislation to set up similar programs. 

‘It is no surprise that this idea has gained traction in states across the country. Black lives and Black wealth matter, which is why Congress must pass our bill without delay,’ Pressley said.

Booker said on Wednesday in a statement unveiling the bill, ‘Americans today are having a harder time accessing homeownership, higher education, and a secure retirement than their parents did just a generation before them.’

 He blamed an ‘upside-down tax code’ that Booker claimed favored the wealthy while letting down ‘Americans who are barely getting by and are unable to afford long-term investments to get ahead.’

‘‘Baby Bonds’ would fix our broken tax code by providing every American child with startup capital for their life, and helping to drive down the wealth inequality that holds American families back from their full potential,’ Booker said.

‘I’m excited for the potential of American Opportunity Accounts to build a foundation for economic opportunity for all Americans, while breaking the generational cycles of poverty for underserved communities in the process.’