Michelle Malkin had an interesting article on her website a couple days ago about President Obama and GOP House Speaker Paul Ryan working together on expanding the $16 billion tax credit programs that are being exploited by illegal immigrants and criminals.
There are two programs, the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) that provide cash payments to low-income parents who pay no income tax and who often fail to have a valid Social Security number.
The IRS makes the fraud easy. They give people who do not have a Social Security number and who are not eligible to work in the country an ITN number.
Most ITNs are issued to illegal immigrants living in the country. Many do not work. Many more do not even have children or their children are living in a foreign country. They file federal income-tax returns often with the help of tax-filing services solely to receive a child tax-credit refund.
The earned income tax credit is a welfare payment. People who don’t earn above a certain level, and that includes people working off the books and not working, get a refund they didn’t earn on their taxes at the expense of the US federal taxpayer.
Believe it or not, the bipartisan initiative was originally meant to help low and moderate income individuals who work. It now goes to people who pay no income taxes and don’t work.
The Treasury Department’s Inspector General for Tax Administration reported that nearly 25% of the payments (almost $16 billion) were issued improperly in 2015.
The $69 billion federal cash transfer program is considered “high risk”, the only one labeled as such by the IRS.
The Additional Child Tax Credit is also defrauded in the same way for over $4 billion.
Corrupt tax preparers help make this criminal fraud work. Even when the IRS finds the “errors”, they have no power to do anything about it. The money is simply gone.
It’s now a worldwide “cash cow for grifters”, Malkin says, to say nothing of the fact that it discourages the incentive to work.
The July 7, 2011, report of the Treasury Inspector General for Tax Administration provides summary data from IRS tax returns that show illegal immigrants collected far more in dollars from the IRS than they paid in federal income taxes for each year in the period of 2005-2010.
When Barack Obama or Hillary Clinton succeed in amnesty to however many millions who are here, it will be untold billions.
Barack Obama gave his approval to allow DREAMers, fake DREAMers and their parents to collect and to redo tax returns for 4 years prior to collect if they hadn’t already or if they hadn’t gotten enough money.
Two years ago, when DACA was passed, the Department of Homeland Security made clear that illegal workers who wanted coveted employment documents would not have to disclose to the feds whether they used stolen Social Security numbers. They essentially okayed identity theft.
This has become another wasteful social engineering experiment.