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2w ago

House Republicans Introduce $1,000 MAGA Accounts for Newborns in Draft Tax Bill

The proposed pilot program, championed by Sen. Ted Cruz, aims to promote early savings but faces criticism over fiscal concerns and ideological divides.

File photo: a young girl wears a "Make America Great Again" hat.
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Overview

  • The MAGA Accounts Contribution Pilot Program, included in a new GOP tax bill, would provide a one-time $1,000 savings credit for U.S. children born between 2025 and 2028.
  • The initiative, originally conceived by Sen. Ted Cruz, is intended to encourage early investment and leverage compound interest for long-term financial growth.
  • Critics from both ends of the political spectrum have expressed concerns, with conservatives citing potential waste and fraud risks and liberals likening the program to socialism.
  • The program draws comparisons to Democratic Sen. Cory Booker’s ‘baby bonds’ plan, which aimed to address wealth inequality through universal savings credits.
  • The draft tax bill, dubbed the 'big, beautiful bill,' aligns with former President Trump’s economic agenda and is awaiting committee review and floor votes.