Tag Archive: Earned income tax credit


‘Amnesty Bonuses’ In Tax Code: Illegal Immigrants To Receive Earned Income Tax Credit

 

 

 

” President Barack Obama has promoted his recent executive action on immigration by arguing that he’s only deferring action – holding off on enforcement of the current immigration laws until an immigration reform he approves of passes Congress. But that’s not really true; in fact there’s a way for illegal immigrants immediately to receive “amnesty bonuses,” as Senator Ben Sasse of Nebraska terms it.

  Here’s how. A recent Homeland Security Committee hearing on immigration revealed an alarming consequence of President Obama’s executive amnesty—that illegal immigrants with deferred status may be able to receive the Earned Income Tax Credit (EITC). Moreover, this person, who is here in the U.S. unlawfully, could be able to file an amended tax return for up to the last three tax years, possibly receiving upwards of $24,000 in tax credits.

  The discovery was made by Eileen J. O’Connor, a tax lawyer and the former head of the tax division of the United States Department of Justice, who used her congressional testimony in front of the Senate Homeland Security Committee to explain it. “The law makes a social security number a requirement of eligibility to receive the earned income credit,” O’Connor explained

“ By offering illegal aliens new payments under the Earned Income Tax Credit, the IRS may encourage fraud from those claiming children living in other countries. The Administration may have blown open the doors for fraud with amnesty bonuses of more than $24,000 to those who receive deferred action,” Sasse says in the statement.

“ This is basic economics: if you want more of something, you subsidize it. By subsidizing illegal entry with four years’ worth of new tax credits, the IRS would promote lawlessness. This program severely undermines the White House’s lip-service to enforcing the law and would increase the burden on law-abiding taxpayers.” “

 

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Obama Opens Fraud-Ridden Benefits Programs To Illegal Immigrants

 

 

 

 

” President Obama’s unilateral executive action on immigration will make hundreds of thousands, perhaps more than a million, illegal immigrants eligible for federal transfer payments. That will be done primarily through two widely used programs — the Earned Income Tax Credit, or EITC, and the Additional Child Tax Credit, or ACTC.

  As it turns out, those two programs are already among the most corrupt and fraud-ridden in the entire federal government. A newly-released report from the inspector general of the Internal Revenue Service confirms that the EITC is plagued by fraud (which was already well known) and also reveals for the first time that the ACTC is even worse.

  The two programs, intended for low-income workers, are what is known as refundable tax credits. That means they give workers a tax refund that is larger than their tax liability. So a family with a tax bill of $1,000 might receive an EITC “refund” of $5,000, meaning the family doesn’t write a check to the government but rather receives a check from the government. The ACTC works similarly for low-income workers with children.”

 

Thanks to Byron York at the Washington Examiner

 

 

 

 

 

 

 

 

 

IRS Issued Billions In Improper Refunds, Report Says

 

 

 

 

” The Internal Revenue Service issued more than $11 billion in improper payments through its Earned Income Tax Credit program last year, according to an inspector general’s report released this week.

The IRS estimates that at least 21 percent of its EITC payments in 2012 were faulty. That rate showed a decline compared to the previous nine years, but improper payments over the same period increased about 22 percent, rising to at least $11.6 billion, according to the inspector general’s report.”

 

 

 

 

 

 

 


HOW THE LEFT VIEWS THE “CLIFF” DEAL

 

 

 

” So the Left is hysterical over the prospect that households who earn between $250,000 and $450,000 annually will only have deductions disallowed, and not see their marginal rates increase. The $250,000 level is purely arbitrary, of course. If the government robbed taxpayers down to that level, MoveOn would move the goalposts to $150,000. Or $100,000. Or $75,000. If you work for a living, they are coming after you; that’s the bottom line. “