On Wednesday, the Washington Post handed space on the editorial page to Sen. Ted Cruz (R-TX) where he attempted to make his case for adding into Donald Trump "big beautiful" budget bill a provision to allow 401(k)s for children that would allow families to sock away $5k per year for each child.
According to the Texas conservative, "I’ve introduced legislation that would create a private investment account for every newborn child in America and seed it with the first $1,000. Each year, family, friends, or employers would be able to contribute up to $5,000 to this tax-advantaged account. Those accounts would be invested in exchange-traded funds or mutual funds based on the S&P 500."
Later adding that outsiders would be welcome "to help low-income kids grow their accounts," readers of the Washington Post complained in the comments section that Cruz seems more than a little "out of touch" and his proposed legislation is just another tax break for the wealthy.
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According to PA Progressive, "I would love to see some statistics on how many parents can afford an extra $5k per year to add to this savings account. The compound interest is awesome...but you need extra disposable income in order to make those numbers actually work. I seriously doubt the majority of America could put aside $5k for this savings account. But again, maybe show the data? How many times have you heard that the average American doesn't even have a $500 emergency fund? "
"So a family with 4 children only has to shell out $20,000 a year to give their kids a better life?" Necromicon wrote before pointing out, "If they can afford that, they already live a better life."
"Your legacy is going to be debt beyond belief that destroys the future of every kid you give $1k to. We're just a few years away from mandatory cuts to Social Security benefits and the elimination of all discretionary spending just to pay for entitlements and interest on the debt. If GOP members are serious about creating a legacy, they'll start acting like adults. Nobody else is," Not Your Father's Olds noted.
Dateline 1 offered, "'[T]his year’s bill is our best opportunity to rally behind a strong conservative agenda that puts families first.' Sure, if your family makes at least a million dollars a year. If not, you're screwed."
"Out of touch, maybe your family friends can take advantage of $5k tax break, but most folks married with kids or forced into raising kids as single parents do not have an extra $200 in our accounts. I happen to beg your pardon for 1 million, please, in offshore account," Graniesis shot back.
"You are advising kids to invest in a Trump roller coaster market?" Maxbien asked.
RetroWest wrote, "Lol, this is the guy who applauds DOGE, and tax cuts for the rich, proudly freed the Jan 6th rioters, and would do and say anything to keep in favor of another man. Cruz you are a cretin."
"Is this some kind of joke? there are families who might have 5K to throw into an account but many struggle to get to the end of the month. As usual, this proposal would favor the richer and increase their wealth over the poorer. Have the US of A contributing 5 K a year to an account for children that live in inner cities and poor areas and I will maybe believe the goodness of your intent. BS," noted Alfredino.
Visa Vixen suggested, "This is ridiculous. Put on your big boy pants, Ted. Vote to raise taxes on the wealthy."
You can read his op-ed here.
