Posted on 02/28/2007 6:15:09 PM PST by NormsRevenge
Every child born in California would get a $500 savings account to start building a nest egg for college or down payment for a home, under a bipartisan bill introduced Wednesday in the state Senate.
A similar program has increased savings in Great Britain since 2002, but California would be the first state in the nation to enact it, said David Lesher, California program director for the nonprofit New America Foundation, based in Washington, D.C. A national savings program has been pending in Congress since 2005.
Under the bill, every child born in California after Jan. 1, 2008, would receive the money, regardless of their parents' income or immigration status. Recipients would repay the state's initial $500 investment once they turn 18.
"This is the essence of equal opportunity. Every child, every person ought to get a head start," said Sen. Darrell Steinberg, D-Sacramento, who introduced the bill with Sen. Bob Dutton, R-Rancho Cucamonga.
About 566,000 children are expected to be born in California next year.
If families added $50 a month to the state's initial contribution, the savings account would grow to nearly $17,500 at 5 percent interest over 18 years. Steinberg said that would promote saving money in a culture that now is carrying record levels of debt and has the lowest savings rate since the Great Depression.
"It sounds like another give-away with other people's money - 'a chicken in every pot,'" said Jim Uhler, spokesman for The National Tax Limitation Committee in Roseville, a Sacramento suburb. "With the budget in the red again ... we have other pressing issues."
Dutton said the money would be "an investment in the child's future," said his spokesman, Larry Venus. "He looks at this as a hand up, not a hand out."
Steinberg said the state's $131 billion annual budget spends taxpayers' money on far more dubious programs.
"There's no question these are significant dollars," Steinberg said. "But look, we spend so much more on things that don't have nearly as much significant value."
The bill does not address what happens to the account if a child dies before turning 18.
Steinberg said the state's $131 billion annual budget spends taxpayers' money on far more dubious programs.
"There's no question these are significant dollars," Steinberg said. "But look, we spend so much more on things that don't have nearly as much significant value."
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The best defense is to keep your mouth shut, Steinberg.
Half the state budget is suspect, imo..
This would be a good idea if it was funded by a tax break for the parents.
But the whole govt entitlement system would collapse if this would lead to the masses seeing what that $500 would grow into over 20 or 30 years.
If every person in our nation understood the concept of the time value of money, we would have a revolution.
People would see the Social Security for the sham that it is.
holy shit. McGovern is back.
What happens to the money if the child dies?
Not that anyone in Calif. would kill their kid for $500.00
Mght be worth it if you lived in a neighboring state. Too much work to fly across the country just to give birth in a california hospital.
Oh!! I have it!!
Let's create a MOVIE STAR TAX to pay for it. If you make your living as a movie star, you pay a special tax, and that will go to fund the poor. I mean, let's face it. Movie Stars are so much wiser, better, more generous, more sensitive than the rest of us... (and generally richer) so I bet they would be happy to do it. HAPPY TO! Why, Sean and Barbara and Susan and Tim would be stumbling over each other to compete for the chance to donate to such a beautiful, beautiful cause.
"The bill does not address what happens to the account if a child dies before turning 18."
The government keeps it?
Do I get a prize for the correct answer?
How about we print "wanted" posters on politicians to raise money.
If they find a cheap enough ho they may be able to get in a carton of generic smokes and a bottle of night train. Of course by then the state of California may provide the night train at no cost.
At the first of the month qualifying people 21 and older, regardless of immigration status, will receive their electronic booze card.
Where would you be posting on, a Mexican Free Republic website?
Good Lord.
(hey, Norm!)
I'm gonna have to run out to Caly-forn-ya, go to a Baptist Church and get born again.
When my New Orleans account matures, I'm gonna run out and rent me a classy ho for a night.
For 500.00 you can
Oh my I was thinking one might throw on hell of a party!!
Perhaps the illegals can run down to Bank of America and get one of those Visa cards that you don't need a social security number for.
A 1977 Ford F-150!!! But no money left for insurance...oh well who needs that.
Make your first few payments on a 72" plasma screen from Remco or Aaron's
Get new cell phones for the family on the move.
Rent a Hummer to take you down to the ER for some of that 'free' healthcare?
Send it to Iran to support freedom fighters.
Import a few more pregnant relatives from Mexico. (seriously
this would actually encourage more young ladies to get pregnant...and thousands of more to move from Mexico)
Only in California folks. What a great state!
Past due time to cut the budget.
Hi Eggs!
What a state this has become , huh? ;-)
As an ex-drunken sailor I resent being compared to California bi-partisan spendthrifts.
What, their State Debt is not big enough yet?
Close, but you forgot the magic of compounding. They can instantly raise tuition by $500*(1+tbill yield)18. That's a MUCH BIGGER number.
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