When wealthy families reach adulthood, they often benefit from parents ’commitment in the form of a trusted box. It is another way to get their peers less wealthy, who may not receive anything at all – or even expected to support their families.
But what if all children – regardless of their families’ circumstances – can get a financial payment when they reach 18 years old?
This is the idea behindThe Republican Party’s proposal at homeWith the support of the presidentDonald Trump. This will lead to the establishment of taxes for tax delay-Trump accounts-for children born in the United States over the next four years, and they have begun each with $ 1,000. At the age of 18, they can withdraw money to submit it towards a batch of a home or education or to start a small company. If the money is used for other purposes, taxes will be imposed on it at a higher rate.
“This is a pro -family initiative that will help millions of Americans harness our economy’s power to raise the next generation,” Trump said at an event at the White House on Monday. “They will get a big jump on life, especially if we are somewhat lucky with some numbers and economics.”
While the investment will be symbolically, it is a relatively small financial commitment to treating the poverty of children in the federal budget of $ 7 trillion. Assuming a return of 7 %, $ 1,000 will grow to about $ 3570 over 18 years.
It depends on the concept “” “Children’s links“Any two states – California and Contecticut – and Colombia Province presented as a way toReducing gapsBetween the wealthy and the poor.
A Republican Representative of Utah Model More, who led efforts to obtain the initiative in a huge bill for spending at home, said.
Moore wrote in a fileFor exampleTo examine Washington. “If we can show our next generation the benefits of investment and financial health, we can put it on a path of prosperity.”
Families from all levels of income may receive “Trump accounts”
The draft law will require at least one of the parents to produce a social security number with work licenses, which means that American citizens born in some categories of migrants will be excluded from interest. But unlike other Bond programs, which target the generally deprived groups, this group will be available to families of all income.
Economist Drick Hamilton of the new school, who first did the idea of children’s bonds, said that the Republican Party’s proposal would exacerbate wealth gaps instead of reducing it. When he dreamed of children’s ties, he depicted a program that would be universal but gives children from poor families a greater gift than their wealthy peers, trying to settle the stadium. The money will be dealt with by the government, not by the private companies in Wall Street.
“It’s upside down,” Hamilton said. “It will enhance inequality.”
Hamilton added that 1000 dollars – even with interest – will not be enough to make a big difference for the child who lives in poverty.
In an interview with CNBC last year, the investor of the Silicon Valley, who created a plan for the proposal, said in an interview with CNBC last year.
“The rise and fall of nations occurs when you have a wealth gap that grows, when you have people who lose their confidence in the system,” said Gistner. “We are not pledged. We can do something.”
Critics say that poor families have more urgent needs
The suggestion comes at a time when Republicans in Congress and Trump face a violent reaction to the proposed discounts of programs on which poor families have children, including food aid andAssertive.
Even some who support the idea of children’s ties are skeptical, noting that Trump wants to reduce high education grants and programs that help young people to the threshold of puberty – Trump’s accounts are supposed to help in the age group. Waiting for federal legislation, it would reduce medical aid, nutritional assistance and housing on which many families depend on children.
Eve Valdez, a youth lawyer in custody of southern California, said that young people who grew up in poverty often struggle to cover the basics such as rent and transportation – Trump’s accounts cannot be used to cover. Valdez, a previous incubator youth, said she was homeless when she was 18 years old.
Shimica Gaskins of the poverty of the child in California said that the accounts of newborns who have been accessible for 18 years mean little for families who are struggling to meet the basic needs today.
“Having children with health care, and they have their families who can reach them pop “The food is what we really need … the country focused,” said Gaskins.
This story was originally shown on Fortune.com
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