Sen. Ted Cruz has proposed the “Invest America Act.” The bill would create government-funded accounts with $1,000 for every American child at birth.
The accounts would allow contributions from others, with a maximum of $5,000 annually, and investments in a low-cost fund tracking the S&P 500, growing tax-deferred until age 18.
Cruz stated that these investment accounts will enhance the economic participation and prosperity of most Americans.
The House Ways and Means Committee is set to review related legislation, including pilot programs for these accounts.
