Yesterday, New York City Mayor (and future US President) Michael Bloomberg proposed increasing the federal earned-income tax credit program in order to wipe out poverty in the United States.

Basically, his plan would expand the federal tax-income credit program so that those making less than $18,000 would get up to $1,000 back, each year. Currently, someone making $11,000 gets as little as $86, a year.

Nationwide, about 19.7 million people would qualify, with 10.5 million of them newly eligible.

He estimates it would cost an additional $8.5 billion, with the expense shared by state and federal governments.

“If we are going to achieve another round of substantial gains like the kind we experienced post-1996, then we have to do more to connect fathers to jobs and to their families,” he said. “And we have to increase the rewards for work so that work pays, both for parents and individuals.”

The plan, which would need Congressional approval, also would require recipients to keep up their child-support payments and to work at least 26 weeks a year.

My thoughts?

You only have to work 26 weeks a year to get the extra cash? Sweet, how can I sign up?

Also, yeah, raising people's incomes above the federal poverty level (currently $10,210 for a single person) would eliminate "poverty", at least by definition, right?

The real question is, as it always has been, does it help or hurt to have the government involved in this sort of thing?

Source: Bloomberg Proposes Expanding Tax Credit to Fight Poverty - By Diane Cardwell, The New York Times