Centrist Democrats include Baby Bonds in proposed initiative
Wednesday, July 26th, 2006
Categorized as: Savings Bond news
The American Dream Initiative unveiled at the annual meeting of the Democratic Leadership Council on Monday includes a proposal to open Savings Bond accounts for each child at birth. The proposal suggests that the government should deposit $500 in these accounts when they are opened and when a child turns 10. In addition, families with incomes of $75,000 or less would be allowed to deposit the existing annual child tax credit into these accounts.
The Democratic Leadership Council (DLC) is a centrist political group with members like Bill and Hillary Clinton, Iowa Governor Tom Vilsack, and Senator Evan Bayh of Indiana. The group is being challenged by a more liberal wing of Democrats, represented by political bloggers and the Campaign for America’s Future.
That challenge is being played out in the primary election for Senator in Connecticut, where Senator Joseph Lieberman, who is aligned with the centrist DLC, is being challenged by Ned Lamont, who is aligned with the more liberal Democrats.
The entire American Dream Initiative consists of proposals related to increasing the number of college graduates, the amount of retirement savings, the percentage of home ownership, and the opportunity to have health insurance.
Here is the exact wording of the section on Baby Bonds:
Baby Bonds. The chance to get ahead depends in large part on having the assets to take advantage of it. The United States should follow Tony Blair?s lead in Britain by providing a Baby Bond to each of the 4 million children born in America each year. A $500 savings bond at birth and again 10 years later would give young people from low- and middle-income families a stake in upward mobility. We should give families with incomes of $75,000 or less the option of directing their existing annual children?s tax credit into these accounts, tax-free. The money could be used for college and training, a first home, and retirement savings.