Sen. Ted Cruz's 'Invest America Act'
Sen. Ted Cruz introduces 'Invest America Act' proposing $1,000 account for every American child, with contributions from individuals, family members, friends, and businesses up to $5,000 annually. The accounts can grow tax-deferred until age 18 and be taxed at the capital gains rate upon distribution.
Key Points
- Proposal for $1,000 account for every American child
- Contributions up to $5,000 annually
- Tax-deferred growth until age 18
- Taxed at capital gains rate upon distribution
Pros
- Encourages savings and investment for every American child
- Allows contributions from various sources
- Promotes economic participation and prosperity
Cons
- Impact on the national debt
- Potential inequalities in access to contributions
- Dependence on the American free enterprise system