Sen. Ron Wyden
Democrats have a redistribution scheme they are peddling at the federal level as a way of fighting poverty. Sen. Ron Wyden wants to set up $500 savings accounts for children at birth at the federal, state and local levels with taxpayer dollars. It would be part of a revamped tax code.
Wyden thinks a paltry $500 account for every newborn will “really put a dent in the poverty rate.” He wants to use a proposal by Sen. Chuck Schumer as a blueprint.
Schumer’s plan takes tax dollars and puts it in accounts managed by an inefficient government. What could possibly go wrong?
Schumer’s bill was called, The American Saving for Personal Investment, Retirement, and Education Act (ASPIRE) of 2009 and it set up a taxpayer-funded account for newborns.
The ASPIRE Fund was to be established within the U.S. Treasury and overseen by a Board of Directors. The Board would appoint a Director of the Fund. After the account has been created, the Secretary of the Treasury was to transfer $500 into each individual account. This amount to be indexed for inflation.
Children born into households making less than the national median income would be eligible for an additional contribution of up to $500 – those that live at 75% of the median income would receive the full $500 bonus, and the bonus phases out evenly until it hits $0 for people who are at the median income or above. At any time after the account is opened, the family may transfer the account to a private sector financial institution.
Children in households that make below 75% of median income can receive a dollar-to-dollar annual match of the first $500 of annual contributions until they turn 18 years old. Total contributions would be capped at $2,000 per year. Before an individual turns 18, a parent or legal guardian is to make investment decisions; at age 18, the account hold may begin to make investment decisions and additional contributions can be made following Roth IRA rules. Investment options for ASPIRE accounts will be similar to those for Thrift Savings Plans, such as a government securities fund, fixed income investment fund, and common stock funds.
Like all government programs, it will be rife with corruption and waste. Why don’t Democrats stop thinking up new programs until after they clean put the ones we have?
What would we do without the government and redistribution schemes.
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