In the ever-turning tides of American politics, a new proposal is making waves. It’s as Texas as a 10-gallon hat, born from the mind of Senator Ted Cruz, R-Texas. He’s calling it the “money account for growth and advancement” or “MAGA account” for short.
Initially christened “Invest America,” this initiative has been shepherded to the House Ways and Means committee with the tenacity of a border collie guiding its flock. Cruz has spent months in discussions with House Speaker Mike Johnson, R-La., committee Chair Jason Smith, R-Mo., and others in the White House.
The proposal aims to establish tax-advantaged investment accounts, each filled with $1,000 for every newborn American with a Social Security number. A nest egg, if you will, that could grow over time through the magic of compound interest and the unpredictable dance of the stock market.
“You can call it anything you like. What is powerful is enabling every child in America to have an investment account and a stake in the American free enterprise system,” Cruz told Semafor on Monday. With the gusto of a rodeo champion, Cruz declared that the MAGA accounts would allow families and employers to contribute up to $5,000 annually to these child accounts. The dream? An account in the tens of thousands of dollars to help pay for education, job training, starting a business, or buying a home. It’s a beautiful vision.
The proposal echoes the spirit of 401 (k) retirement plans, a kind of piggy bank for the future, with a capital gains tax rate applied upon withdrawal. But this time, the piggy bank is for the kids. It’s an ambitious idea, with potential repercussions as broad as the Rio Grande.
Many Americans don’t own stocks or bonds, are not invested in the market, and may not feel particularly invested in the American enterprise system. But according to Cruz, the MAGA accounts will help every child invest in America and feel that they have a stake in the game.
Only time will tell if this proposal can navigate the political rapids and become law. If it does become law, what impact will it have on the next generation? We will have to wait and be patient to find out.
