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If you don't know what I'm talking about, here's a blast from my past you should watch immediately. https://bit.ly/4qZrlTo If for no other reason, so that you might hear for yourself the tune that was stuck in my brain for the duration of the conversation you're about to listen to, and the long journey of a bill that I very much hope becomes a law, but might not, because…you know, certain elected officials are idiots.
The bill is called The Jumpstart Savings Act, and it was just introduced by a Congressman from West Virginia named Riley Moore, a former welder and miner trying to inject a little common sense into Capitol Hill. The Jumpstart Savings Act is designed to establish savings accounts modeled after 529 college savings plans, allowing individuals to contribute up to $25,000 annually tax-free. Like 529's, these funds grow over time and can be used later for trade certifications and apprenticeship programs. But unlike 529's, this money can also be used to purchase tools, equipment, licenses, and other small business startup costs. Under the bill, existing 529 college savings can be rolled into Jumpstart accounts without penalty.
The implications are significant, especially when you consider the financial impediments of starting a small business in the trades. A welder, for instance, who is fully trained and willing to work as a sole proprietor, faces huge startup costs - the tools alone can cost tens of thousands of dollars. Throw in the cost of a work truck and you're looking at a six-figure barrier to entry. Likewise, plumbers and electricians with an entrepreneurial spirit. The barriers to entry are huge.
Allowing people to invest and save for careers in the skilled trades is long overdue, and the only reason it hasn't happened yet is because Washington has failed to recognize the importance of the skilled trades, and therefor passed lots and lots of legislation that benefits certain academic pursuits over others – specifically, jobs that require a four-year degree over those that require training. This bill, if passed, would go a long way in incentivizing the next generation to consider the many benefits of mastering a skill that's in demand, and help level the playing field in the race to encourage more skilled learning, and more entrepreneurial spirit.