February 16, 2023 10:19am EST
Dems propose 'baby bonds' to close the racial wealth gap: 'Black lives and Black wealth matter'
Democrats propose higher estate taxes to pay for their plan to close the racial wealth gap
By Peter Kasperowicz | Fox News
House and Senate Democrats this week proposed a bill that would instruct the federal government to give anyone born in the U.S. after 2005 a $1,000 "seed savings account," and then make contributions to that account until they are 18 — a plan that sponsors say is aimed at closing America’s "racial wealth gap."
If enacted into law, the bill would transfer billions of dollars in wealth from high-income families to low-income families, as it would fund the program by significantly increasing estate tax revenues.
The "baby bonds" bill, from Sen. Cory Booker, D-N.J., and Rep. Ayanna Pressley, D-Mass., would give children up to $2,000 a year in the lowest income families, an amount that would drop as families earn more. If a family were to make more than 500% of the federal poverty level, their kids would only receive the initial $1,000 payment.
They estimate that children in the poorest families would have $46,000 to use for school or buying a home by the time they turn 18, and Booker said in a statement that the plan is explicitly aimed at fixing "wealth inequality."
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https://www.foxnews.com/politics/dems-propose-baby-bonds-close-racial-wealth-gap-black-lives-black-wealth-matter