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Jagadeesh Gokhale and Michael Tanner, "KidSave: Real Problem, Wrong Solution" Cato Institute, January 2006 (cato.org)
There is growing bipartisan support for some sort of federally funded grant specifically for children. One possible plan would deposit $2,000 into an account for every newborn child. Families could then contribute $500 annually to the accounts, which would grow on a tax-free basis. This type of program attempts to rectify the problem of low-income Americans failing to save for their own and their children's futures. In reality, argue Jagadeesh Gokhale and Michael Tanner, the touted "KidSave" accounts would simply be a massive new federal entitlement netting no real positive outcome.
The cost of KidSave accounts would be high; some estimates show the program costing $266 billion over the next 75 years. If the program were to cover all children, not just newborns, the costs could soar to over $400 billion.
And KidSave could cause parents to "offset their own saving for their children's ...
Source: HighBeam Research, Right question, wrong answer.(the Digest: Summaries of important new...