Politics

Mike Bloomberg unveils a plan to raise the earned income and child tax credits

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Key Points
  • Democratic presidential candidate Mike Bloomberg releases a new proposal that would give a boost to lower-income workers by increasing tax credits for earned income and child care.
  • "Mike will reform the EITC (Earned Income Tax Credit) to make it much more generous, especially for single childless workers," his plan says.
  • At the moment, the Internal Revenue Service says the maximum earned income tax credit a family with more than three children can claim for tax year 2020 is $6,660.
The former mayor of New York and founder of Bloomberg, Michael Bloomberg, is seen delivering his speech during the presentation of ‘America’s Pledge on Climate Change’ for the ninth day of Climate Summit COP25 in Ifema on December 10, 2019 in Madrid, Spain.
Jesus Hellin | Europa Press | Getty Images

Democratic presidential candidate Mike Bloomberg on Monday released a new proposal that would give a boost to lower-income workers by increasing tax credits for earned income and child care.

Bloomberg, the billionaire former mayor of New York, did not reveal how much he would raise either benefit. The plan says he would seek to pay the earned income tax credit monthly, not annually.

"Mike will reform the EITC (Earned Income Tax Credit) to make it much more generous, especially for single childless workers," his plan says. "The credit will be paid monthly not annually. And taxpayers will be helped to apply for the benefits they're entitled to."

At the moment, the Internal Revenue Service says that the maximum earned income tax credit a family with more than three children can claim for tax year 2020 is $6,660.

His plan also proposes to increase the child tax credit that was doubled to $2,000 per child under President Donald Trump's 2017 tax bill.

"Mike will increase the Child Tax Credit, make it fully refundable, and phase it in faster, starting with the first dollar of earnings," the proposal says.

The proposal was unveiled during Bloomberg's recent campaign stop in California, where he spoke with Stockton Mayor Michael Tubbs, who endorsed Bloomberg.

Bloomberg, who has a net worth of just over $54 billion, has been busy since he entered the primary just a few weeks ago. Beyond his economic policy proposals, he's traveled to other numerous Super Tuesday primary states, including Texas and Virginia.

He's also spent over $100 million on TV ads since entering the race in regions across the United States.

Bloomberg is fifth among Democratic presidential candidates with 5.5% in the RealClearPolitics national polling average, behind former Vice President Joe Biden, Sens. Bernie Sanders and Elizabeth Warren, and South Bend, Indiana, Mayor Pete Buttigieg.