Texas Republican Ted Cruz is championing a plan, embraced by MAGA, to incentivize childbirth through tax breaks. The proposal, known as the 'Invest America Act,' aims to provide a $1,000 seed investment for each U.S. child.
These accounts would be tax-exempt until the child reaches 18, after which capital gains taxes would apply. Family, friends, and businesses could contribute up to $5,000 annually to these accounts.
Investments can be directed into a low-cost fund tracking the S&P 500, growing tax-deferred until the individual turns 18. Congress is considering including provisions to create 'MAGA accounts' in President Donald Trump's 'big, beautiful bill'.
Each U.S. citizen born between December 30, 2024, and January 1, 2029, would be eligible for the account. The 'MAGA Accounts Contribution Pilot Program' would create $1,000 accounts given to parents with qualifying children, pending negotiations in the House Ways and Means Committee.
Cruz believes his bill could be a landmark achievement, supported by business leaders like Brad Gerstner and Michael Dell. They emphasize the potential for these accounts to foster economic participation and innovation among future generations.