This will make every newborn a capitalist. Ten years from now, a ten-year-old will be able to take out their phone and say that I own 100 dollars in Apple, 75 dollars in Boeing, and 50 in McDonald's, says Republican Senator Ted Cruz in an interview.
The proposal, which is part of President Donald Trump's tax reform package, received the green light in the House of Representatives last week, where Republicans have a majority, and is now being sent to the Senate.
In practical terms, this means that newborns between December 31, 2024, and January 1, 2029, will receive 1,000 dollars, which they will not be able to access until their 18th birthday. Until then, outsiders will be able to contribute a maximum of 5,000 dollars per year, but the contribution must be invested in American assets, such as listed companies.
The cost of the entire program is estimated to be around 7.3 billion dollars.
This is the opposite of socialism, says Ted Cruz about the proposal, which has been dubbed the "Trump account".
From a Democratic perspective, this has been questioned, citing that the proposal has been named after Trump, and that Democratic Senator Cory Booker has proposed the same thing for several years.
