David Lesher Discusses Kids' Accounts on Sacramento's KXTV

Communications — Fri, 02 Mar 2007 21:15:00 -0500

New America in the News:

California lawmakers are considering giving $500 to every single baby born in the state. The bipartisan bill aims to give babies a financial head start with a savings account.

"Anything we can do to encourage savings and investment and to provide a young adult -- especially young adults from lower income families, families of modest means -- to be able to have a small nest egg to go to college to learn a career, down payment on the house, would be a good thing," said Sen. Darrell Steinberg, D-Sacramento.

At age 18, each child would repay the original $500 gift, but they can keep any interest and additional deposits tax free.

"We're at a point where our middle class needs to grow," said David Lesher from the New America Foundation, a group that invests in non-traditional policy ideas. "We have an income gap with too many rich, too many poor and we don't have enough in the middle class..."

For the complete story, please visit the KXTV, Sacramento website.