ROOKE: We Don’t Want Government Handouts — Just Stop Taxing Us To Death

Senate Republicans have a new plan to supposedly help new families start investment funds and build generational wealth for American children.

Texas Sen. Ted Cruz is spearheading the “Invest America” Act, which would establish a private tax-advantaged investment account for every newborn child in America, seeded with $1,000 from the federal government. But as we all know, the investment doesn’t really come from the federal government; the American taxpayer funds it.

Thanks for your inspired leadership! And the work of the many Republicans & Democrats who recognize the imperative to empower each child w a private account that shares in the upside of this dynamic American economy! 🇺🇸🚀 https://t.co/lFFCJrG9Pd

— Invest America (@InvestAmerica24) May 13, 2025

The accounts can receive up to $5,000 annually in contributions from friends and family members, and their growth is tax-deferred until the child reaches 18. In an interview with CNBC, Cruz stated that the act has a massive potential financial impact. The account will have a seven percent growth rate, meaning a child could accumulate $177,000 by the time they turn 18 and $700,000 by age 35. (Sign up for Mary Rooke’s weekly newsletter here!)

“The Invest America Act will trigger fundamental and transformative changes for the financial security and personal freedoms of American citizens for generations. Every child in America will have private investment accounts that will compound over their lives, enhancing the prosperity and economic participation of the vast majority of Americans. When people years from now talk about the changes created by Republican efforts this Congress, this is one of the landmark achievements they will talk about,” Cruz said in a statement.

Without any context, the plan seems like a great way to uplift lower- and middle-class families who are less likely to be financially able to set up investment accounts for their children. However, Americans don’t live in a utopian fantasyland. Instead, our elected officials continue to saddle taxpayers with uncontrollable spending. The current national debt totals over $36 trillion, and there is no end in sight.

The cost to taxpayers will be enormous. According to 2023 CDC data, the U.S. has around 3.6 million births yearly. This means that if birth rates stay the same, American taxpayers will fund these accounts to the tune of $3.6 billion every year. Of course, this cost could increase over time due to rising birth rates and potential inflation. It also doesn’t take into account the administrative costs of running this new program. (ROOKE: Majority Of American Catholics Disappoint Rest Of Us As New Poll Reveals Damning Results)

It’s not that I am necessarily opposed to increasing wealth for Americans. I want our citizens to be financially secure. But how can we guarantee that if Democrats get elected, this new entitlement program won’t be abused by allowing illegal immigrants or non-citizens access?

More importantly, why are Republicans, who have traditionally opposed federal intervention in personal finance, now creating a brand new, bloated government program that will end up costing Americans money they can’t afford to pay? In 20 years, we will be forced to listen to Republicans bloviate on the Senate floor about the rising costs of these investment accounts and how Americans were sold a con. It’s disappointing (to say the least) to hear the GOP champion a “free money” giveaway under the guise of helping future generations.

GOP Sen. Rand Paul: We have to talk about cutting Social Security and Medicare pic.twitter.com/PawHGhwMkp

— FactPost (@factpostnews) March 6, 2024

If Republicans want to give Americans the opportunity to create generational wealth, they should instead focus on lowering taxes and creating an economic boom that provides good-paying jobs that can support families. This would also be a great time to bring back home economics in American classrooms.

Giving every baby in the U.S. money isn’t going to teach them what to do with it once they turn 18. However, giving them an education that shows them how to manage a family budget, balance their accounts, and build savings would do way more than handing every American an investment account that saddles the nation with growing debt.

I know as a conservative, I’m supposed to champion this initiative, but I can’t help but see the obvious mistake we are making at a time when Americans can barely pay their bills.

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