[Congressional Record Volume 153, Number 2 (Friday, January 5, 2007)]
[Extensions of Remarks]
[Pages E26-E27]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        INTRODUCTION OF KIDSAVE

                                 ______
                                 

                           HON. JERRY WELLER

                              of illinois

                    in the house of representatives

                        Friday, January 5, 2007

  Mr. WELLER of Illinois. Madam Speaker, commentators on the political 
left and right agree about one thing: There are too many political 
disagreements in Washington, D.C. Of course, the best way to change 
that would be for those of us who are lawmakers to find common ground 
and begin passing legislation that virtually everyone can agree on.
  Where to begin? How about with a program that has the support of 
moderates, liberals, and even the conservative Heritage Foundation? 
That program is KidSave.
  This common-sense program would allow every American child--
regardless of parental income--to save up tens of thousands of dollars 
for retirement.
  KidSave is fairly simple. If it was in effect today, at birth every 
child would receive a loan of $2,000 from the Social Security 
Administration. The initial amount would be linked to inflation, so it 
would increase slightly year to year. The money would be deposited into 
an account that couldn't be opened until the owner retires or dies.
  This account would be managed by the Thrift Savings Plan, the same 
plan that federal employees--including those of us in Congress--use to 
manage our retirement funds. Right now there are three low risk, low-
cost options offered through the TSP: A government-bond fund, a 
corporate-bond fund and a stock index fund.
  The child's parents would decide which fund to deposit the initial 
investment in, and it would grow untapped for decades and decades. 
According to a study by the Heritage Foundation, the opportunity for 
growth is so great that, even if no money was ever added to the initial 
investment, that loan could still grow to $50,000 by the time the child 
reached retirement age.
  Parents and grandparents also could contribute additional money tax-
free. They could add as much as $500 per year every year until the 
child turned 19, and that money could be diverted from their own 
retirement plans. That's an additional $9,500, all of it being 
compounded year after year until retirement.
  This is one of those rare Washington programs with the power to 
change everyone's outlook for the better.
  Wealthy people have long taken advantage of long-term investments--
indeed, families such as the Rockefellers and Vanderbilts have lived 
for decades off the money earned by their forefathers. Today, thousands 
of middle-class grandparents are opening education accounts for their 
newborn grandchildren.
  But KidSave would allow all children to enjoy the benefits of 
compound interest. Imagine an entire generation of working-class senior 
citizens with tens of thousands of dollars to spend as they wish. 
They'd be virtually guaranteed a secure retirement and could spend 
their newfound wealth on themselves or share it with their children and 
grandchildren.
  A portion of this money would be passed from generation to 
generation, either as gifts to grandchildren or through donations to 
churches or community groups. That would help build a more secure 
future for generations to come.
  Best of all, KidSave is a loan from Social Security, not a gift or a 
new government entitlement. That's one reason it enjoys such broad 
support. And it doesn't end up costing taxpayers anything. When the 
account owner reaches age 30--an age at which most people are well 
along in their working lives--the original loan would be repaid in five 
annual installments. The repayment amount would be linked to inflation, 
so an initial $2,000 loan would be returned to the government as, say, 
$3,500.

[[Page E27]]

  Lawmakers today are deadlocked over how to reform Social Security, 
how to improve welfare and how to close military bases, to name just 
three difficult issues.
  But we could get started on solving those if we'd first implement 
common-sense programs that enjoy wide support. KidSave seems like a 
good place to start building a better future for all Americans. That is 
why I am reintroducing for the 110th Congress, this important bill.

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