These hypocrites cannot open their mouths without lying. To review wacko Wyden's proposal on his own terms, let's look how the the federal government defines the poverty rate. It varies by household size.
Speaking earlier this month at the University of Southern California School of Law and the Urban-Brookings Tax Policy Center, Wyden said universal savings accounts for newborns would “really put a dent in the poverty rate.” He described the country’s current tax code as a “dysfunctional, rotten mess of a carcass.”
Ron Wyden and his wife Nancy at Yankee Stadium.Wyden's family lives in New York while he
represents Oregon in the United States Senate.
For each additional person, add
When a baby is born, a household needs to generate an additional $4,020 in income per year to stay above the poverty line. That accumulates to $72,360 by the time a child reaches age 18 and is no longer considered a minor. Five hundred dollars puts a dent in that? It barely mars, in fact it doesn't even scratch the surface of the actual challenge. The only way to put a dent in the poverty rate is for the parents to get jobs, real jobs.
Wyden's proposal is a shell game. This country has no money to give anyone. Indeed, when every child is born today he or she assumes $55K in debt.
A rational and reasonable proposal would take on eliminating that diabolic inheritance. Let's up the $500 to a still modest (relative to the inherited debt) but easily achievable $1,200 per birth, and reduce the federal deficit by that amount for each child born. Here is how the math works.
|Live birth data form CDC.|
Even though the annual contribution is modest ($4.7 billion the first year), by the time today's babies reach the age of being fully privileged adults, more than a trillion dollars will have been shaved off the accumulated debt. That's a small down payment on eliminating the immense burden that our spendthrift society is passing along to the next generation.