Bill Would Give Every Calif. Newborn $500

[Kadie]

Feb 28, 2007 11:13 am US/Pacific

Bill Would Give Every Calif. Newborn $500

They say you can't take money with you when you die, but in California you may soon be born with it. A new bill would give all newborn babies $500 tax free.

Actually the bill would set up 'baby' bank accounts for all newborns. The state will deposit $500 in the accounts with the hope of getting parents to start investing in their child's future early on.

The bill is being introduced by state Sen. Darrell Steinberg, D-Sacramento, and Sen. Bob Dutton, R-Rancho Cucamonga. They say it will cost the state about $270 million.

The account, called Kids Investment and Development Savings, or KIDS. The money could be withdrawn when the child reaches 18 and then could be used for a house, education or retirement savings.

If the money is taken out before age 18, there could be a 10 percent penalty and repayment of the initial $500 to the state.

more...
http://cbs13.com/topstories/local_story_059143415.html


Text Of Baby Bank Account Bill
http://cbs13.com/local/local_file_059143618

[yellerpup]

1. Better to give them health insurance

of course, the banks wouldn't then get to hold $270M for the next 18 years or collect a penalty in case the kids needed to cash out if they got, say...a life threatening tooth infection.

[Dr.Phool]

2. The banks would eat up the $500 in fees

In about 2 years.

[yellerpup]

6. I hadn't even thought about the fees.

Besides, banks can change their rules and rates any time they want. I've noticed that all the changes are always in the bank's favor. Sigh. Depressing.

[SoCalDem]

8. For a government plan, they could mandate fee-less

I don't see this passing anyway

[yellerpup]

11. It's just not a very good idea.

We got a $700 tax 'rebate' check after B* was elected, then my husband lost his job, then 9-11 happened and we neither one could find work until late November that year. I don't know what this initiative is about, but it's not about helping children.

[SoCalDem]

3. $10 a month makes it over $3K at 18

[pepperbear]

4. and with the current rate of inflation, that'll be worth about

$2.99 18 years from now.

[WI_DEM]

5. Can't they put that money towards insuring them instead?

[SoCalDem]

10. Or giving each graduating senior with a B average, a $2000 college "grant"

to be used for books, fees tuition. That would be a real help and a little incentive to keep the grades up too :)

[Quantess]

7. How about giving people $500 for NOT having a child?

Anyway.... the Federal government would just find a way to rob the trust funds being proposed.

[Colobo]

9. I'm against this bill

This is excessive spending! Why in the world would the state give $500 to every newborn child? I understand if you are talking about single, low-income mothers... but for every baby? Nonsense.