Thursday, October 11, 2007

Baby Bond Bust

Hillary Clinton proposes $5,000 'baby bonds'

Hillary Clinton wants the government to give each child born in the United States a $5,000 "baby bond."

Sen. Hillary Clinton said today the government should give every child born in the United States a $5,000 "baby bond" to help pay for college.

"I like the idea of giving every baby born in America a $5,000 account that will grow over time, so that when that young person turns 18 if they have finished high school they will be able to access it to go to college or maybe they will be able to make that downpayment on their first home," the Democratic presidential hopeful told a Washington forum hosted by the Congressional Black Caucus.

Clinton did not say how much her proposal would cost or how it would be paid for.

About 4 million children are born each year in the United States.

The New York senator said these "baby bonds" would help Americans struggling to save enough money to cover rising education and housing costs.

Wealthy people "get all kinds of tax incentives to save, but most people can't afford to do that," she said.ORK writes:I have a lot of questions about this. How much money would have to be paid for the initial bond to grow to 5 thousand dollars? How would it be possible to find out who to send the bonds to? Is there some sort of register that parents would have to fill out ? How could one be sure that the bond actually went to the children's account and not some other person's account for nefarious reasons? Is it tax exempt? Is it retroactive? I mean, will I get a bond , simply for being born in 1968?Who will pay for the initial cost of the bonds? Will they be counted as income? Will illegals be able to have access to these bonds. I mean, if an illegal pregnant woman comes over to this country and gives birth, will the kid that is born be given a bond?Will American citizens born overseas have access to these bonds?Do you have to be over a certain income to obtain a bond? Under a certain income?Why does Hilary Clinton seem to think that it is the governments responsibilty to do what the parents should be doing?

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