For too many workers, hard work isn’t paying off. We need to overhaul our tax system to put more money in the pockets of Ohio families.
That’s what President Trump promised workers — but instead of getting bigger tax returns, many Americans aren’t getting the refunds they were hoping for from the president’s tax bill. Some even owe money.
We need to throw out President Trump’s tax law, and completely rewrite our tax code to put people first. I’m introducing a plan to do that, starting this month.
My plan has four parts.
First, the Patriot Corporation Act would reward companies that do the right thing and invest in American jobs and American workers.
Part two is the Corporate Freeloader Fee. If corporations pay their workers so little that they’re forced onto government assistance, they need to reimburse American taxpayers. No one working full-time should be forced onto food stamps, housing vouchers, Medicaid, or other government aid just to stay afloat, and American taxpayers shouldn’t be forced to subsidize wages for mega-corporations.
Third, we need to give families a Cost of Living Refund.
The cost of everything from healthcare, to rent, to college tuition is up – but for most workers, wages are flat. They need more money in their pockets to keep up.
That’s why I introduced legislation with Congressman Ro Khanna (D-CA) to double the Earned Income Tax Credit (EITC) for working families, and make millions more people eligible. For the first time, students and caregivers would be able to claim the EITC, because getting an education is work, and so is taking care of a child or a parent. Our society needs to recognize that.
These changes would mean anywhere from $3,000 to $12,000 in the pockets of 50 million Americans.
My plan would also let workers claim a one-time advance on their EITC refund. Right now, four in ten Americans say they couldn’t afford an emergency expense of $400 without borrowing money. An early refund EITC would give millions of Americans an alternative to expensive, predatory payday and car title lenders when emergencies happen.
Finally, we are going to dramatically expand the Child Tax Credit.
The cost of raising kids has never been higher. From childcare to saving for college, even middle class families working full-time find it hard to keep up. In the coming weeks, I’m introducing a bill to increase the Child Tax Credit to $3,000, or $250 a month, for each child age six or older. And we’re going to make it a little bigger for every child under age six, raising it to $3,600 per year, or $300 a month.
This proposal alone would cut childhood poverty in half, and would make a big difference for families paying for daycare and diapers and school supplies and all the extra expenses that come up when you’re raising a family.
Taken together, this plan will create a tax code that puts money in the pockets of working people, raises wages, and keeps jobs in the U.S.
Sherrod Brown is the senior U.S. senator from Ohio.